August 12, 2026
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BREAKINGThe US government now owns equity stakes in 30 private companies up from ZERO just over a year ago.According to the Cato Institute, in some cases the federal government is already the single largest shareholder. This rapid expansion of government ownership has become routine under the current administration, largely through CHIPS and Science Act funding and critical minerals deals.Cato researchers highlight how the Commerce Department is now requiring minority equity stakes as a condition for billions in R&D incentives. What started as scattered oneoff deals has evolved into an official “portfolio approach,” with new companies being added in batches. Key concerns raised by Cato• The government is simultaneously regulator, customer, financier, and shareholder • Major risks of capital misallocation and cronyism • Conflicts of interest when Washington holds ownership while controlling contracts, permits, tariffs, and subsidies • Future administrations inherit a powerful tool to pick winners and losersNotable examples include the large stake in Intel and investments across semiconductors, rare earths, quantum computing, and nuclear energy. Is this smart industrial policy… or the rise of American state capitalism? Cato calls it a dangerous blurring of the line between free markets and government control. Full Cato analysisdo you think, necessary for national security or a slippery slope toward government ownership of the means of production? Drop your thoughts in the comments.
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