Congressman Morgan McGarvey Introduces American Sovereign Wealth Fund Exploration Act of 2025

April 30, 2025 Congressman Morgan McGarvey Introduces American Sovereign Wealth Fund Exploration Act of 2025 Congressman Morgan McGarvey (KY-03) introduced the American Sovereign Wealth Fund Exploration Act of 2025 today, which would create a 25-member commission to study and report on the “feasibility, considerations, limitations, and implications of creating and operating a sovereign wealth fund of the United States.” To provide independence, the commission would be hosted by the Federal Reserve and be composed of members from the Federal Reserve System, Treasury Department, Securities and Exchange Commission, Commerce Department, U.S. Trade Representative, and academics and experts. Last year, Congressman McGarvey introduced a similar bill , which was the first legislation ever introduced in Congress explicitly researching the feasibility of an American sovereign wealth fund. “To solve today’s problems, we must be bold. An American sovereign wealth fund, with proper congressional authorization and oversight and political independence, could dramatically improve the lives of working families across our country, including helping fund universal child care, an expanded Child Tax Credit, or even universal health care,” said Congressman McGarvey. “If we are going to do this, we have to do it right – and we have to do it through Congress. We must ensure a sovereign wealth fund is used to help working families and is not just a slush fund for billionaires.” BACKGROUND: General The American Sovereign Wealth Fund Exploration Act of 2025 is built on the premise that a sovereign wealth fund (SWF) is neither good nor bad, it’s a tool. The bill prioritizes objective analysis, political independence, and strong ethics requirements, including requiring the 25-member commission to consult the Santiago Principles – best practices for open, ethical, and transparent SWFs – when drafting their report. The commission would have two years to develop a report to Congress on their findings and recommendations for legislative action. To provide independence, the bill explicitly requires that the commission is housed within the independent Federal Reserve System. The McGarvey Commission The bill creates a 25-person commission comprising of: 6 representatives from the Board of Governors of the Federal Reserve System or a Federal reserve bank. 3 representatives from the Department of the Treasury. 3 representatives from the Securities and Exchange Commission. 2 representatives from the Department of Commerce. 1 representative from the Office of the U.S. Trade Representative. 10 representatives from academia or experts in the fields of economics, monetary policy, fiscal policy, investment policy, industrial policy, or other aspects involving sovereign wealth funds, appointed by the Chair of the Federal Reserve. Sovereign Wealth Funds in Other Developed Nations According to the International Forum of Sovereign Wealth Funds, over $9 trillion in assets are managed by over 100 SWFs globally, such as: Australia's Future Fund France's Bpifrance Ireland Strategic Investment Fund New Zealand Superannuation Fund Singapore's Temasek Holdings South Korea's Korea Investment Corporation State-Level Funds in the U.S. According to the Sovereign Wealth Fund Institute, 14 U.S. states have SWFs: Alabama Trust Fund Alaska Permanent Fund Corporation Colorado Public School Fund Investment Board Idaho Endowment Fund Investment Board Louisiana Education Quality Trust Fund Native Hawaiian Trust Fund New Mexico State Investment Council North Dakota Legacy Fund Oklahoma Tobacco Settlement Endowment Trust Texas Permanent School Fund University of Texas/Texas A&M Investment Management Company Utah School & Institutional Trust Funds Office West Virginia Future Fund Wisconsin Board of Commissioners of Public Lands Wyoming State Loan and Investment Board ### Print Email Share Tweet