Congress creates $100B sovereign wealth fund with 50-year lockdown on portfolio companies
H.R. 9954 — Build America Fund Act · Filed by Chris Deluzio (D-PA) · Introduced Jul 27, 2026 · Referred to committee
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What it does
This bill creates a $100 billion Manufacturing Sovereign Wealth Fund to invest in U.S. manufacturing, semiconductors, supply chains, and workforce development. The Fund is governed by a 13-member board appointed by the President and makes equity and loan investments in companies that agree to keep operations domestic for 50 years, maintain labor standards, and grant the Fund veto power over offshoring, foreign sales, and IP transfers. The bill funds the Fund through direct appropriations, tariff revenue, a 1% fee on mergers over $1 billion, a 0.1% stock trading fee, a $100 per-share buyback fee, an offshoring penalty, and a corporate tax increase from 21% to 22%. Starting in 2032, eligible individuals receive a tax credit (the "Build America dividend") equal to 25% of the Fund's average annual profits, phased out for higher earners.
Why we flagged it
The bill's core mechanism is the establishment and capitalization of a government-owned investment fund focused on domestic manufacturing, supply chain resilience, and labor standards—a form of state-directed industrial policy. The funding mechanisms (tariffs, trading fees, corporate tax increase) and the Build America dividend are secondary revenue and distribution tools.
What the text implies
- The 50-year operational lockdown on portfolio companies (no offshoring, no foreign expansion, no IP licensing to foreign entities) may reduce their ability to compete globally or adapt to market changes, potentially harming long-term returns and worker job security if companies become uncompetitive.
- The 1% M&A fee and 0.1% stock trading fee may suppress deal activity and market liquidity, with costs potentially passed to retail investors and pension funds; the buyback fee ($100 per share) is a blunt instrument that may discourage capital returns to shareholders without clear public benefit.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. manufacturing companies in semiconductors, batteries, defense supply chains, and advanced manuf; Small and medium-sized manufacturers receiving workforce development support; Domestic supply chain firms benefiting from reshoring investments