The US government has built a roughly $27 billion portfolio of equity stakes in private companies since early 2025, and that push is now drawing lawsuits, congressional criticism, and skeptical voters ahead of the 2026 midterms. An Intel shareholder lawsuit challenges the legal basis for one of the administration's largest stakes, while polling shows most Americans oppose the arrangements.
The US government has quietly become one of the more active investors on Wall Street, and the legal footing behind that role is now being tested in court.
A $27 billion push built on federal leverage
Since early 2025, the administration has executed roughly 30 equity and quasi-equity transactions that convert federal grants and loan authorities into direct ownership stakes, totaling nearly $27 billion. The government holds a 10% stake in Intel and a 15% stake in MP Materials, both tied to CHIPS Act funding and the Defense Production Act.
That execution is where the trouble starts. An Intel shareholder lawsuit is challenging the legitimacy of the government's equity demands tied to CHIPS Act funding, arguing the legal basis for those claims is shaky. If upheld, that argument could unwind some of the administration's most prominent deals.
Voters and economists turn against the policy
Public sentiment isn't helping the administration's case either. A July 2026 CNBC poll found that 49% of voters view government ownership stakes in US companies as inappropriate, while only 19% expressed support.
Economists are even more critical. A Kent Clark survey found that 67% of finance economists believe government equity stakes are detrimental to corporate performance. A larger share of those surveyed, 82%, say the stakes harm governance practices.
Congress isn't unified on the policy, either. Rep. Pat Harrigan has flagged unintended consequences when the government takes equity positions in firms it also regulates and contracts with. According to Crypto Briefing, Sen. Rick Scott has described government investment in private companies as a "last resort" rather than a feature of industrial policy.
What investors are watching next
For now, the near-term picture is mixed: Intel and MP Materials both got a short-term boost from the implied government endorsement when their deals were announced. But if Democrats retake Congress in the 2026 midterms, legislative pressure to unwind or restrict these equity arrangements becomes a real scenario — a category of political risk that most institutional investors aren't used to pricing into semiconductor or defense holdings.
A company negotiating a contract with the Pentagon while the Pentagon holds a meaningful equity stake in that same company faces a conflict of interest with no clean resolution.
Source: Crypto Briefing
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