Trump Administration Considers Equity Stakes in Major Defense Contractors like Lockheed, Reveals Lutnick

U.S. officials are considering buying stakes in major defense companies like Lockheed Martin. Commerce Secretary Howard Lutnick recently shared this idea in an interview on CNBC’s “Squawk Box.” This discussion comes right after the government purchased 10% of Intel’s stock for about $9 billion.

Lutnick suggested that there’s an intense debate around this topic, especially regarding the defense industry. Lockheed Martin, he noted, largely operates with federal contracts and is almost like an “arm of the U.S. government.”

However, Lutnick left the economic details to the Secretary of Defense and his deputy, saying they are examining the situation closely.

Lockheed Martin is currently the leading defense contractor globally, according to DefenseNews’ 2024 list. Other top players include RTX, Northrop Grumman, General Dynamics, and Boeing. This push for equity stakes might mirror President Trump’s recent endeavors to gain control over sectors he believes are vital for national interest, like technology and defense.

Experts are divided on this approach. Some see it as a way to ensure U.S. leadership in critical industries. For instance, Lutnick stated that the Intel deal would bolster America’s standing in semiconductors, crucial for both the economy and national security. However, critics, including economists and politicians, warn that this trend might hurt market dynamics. Scott Lincicome of the Cato Institute cautioned that political motivations could overshadow business decisions at Intel, while Sen. Rand Paul suggested this could verge on socialistic principles.

This kind of government involvement in private companies isn’t new. During the 2008 financial crisis, for example, the U.S. government bailed out several banks. Critics at the time argued that this undermined free-market principles. The reactions to the current situation show a similar divide. While some think increased government stakes can foster better oversight and coordination in sectors critical to national security, others fear it might stifle competition and innovation.

As the conversation evolves, social media reactions highlight public concern and curiosity. Many users express hope that government intervention can lead to stronger domestic production. Others worry about the implications for capitalism and market freedom.

The ongoing debate highlights a significant tension in U.S. economic policy: how much control should the government exert over private industry, especially in critical sectors? This question will continue to shape discussions in both political and economic arenas. For further insights on this topic, you can read more from [Defense News](https://people.defensenews.com/top-100/) and opinions from [The Washington Post](https://www.washingtonpost.com/opinions/2025/08/24/trump-intel-government-marketplace/).

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