Bills of Congress April 30, 2025 by U.S. Congress

H.R.3116 - American Sovereign Wealth Fund Exploration Act (119th Congress)

Summary

H.R.3116, the American Sovereign Wealth Fund Exploration Act, proposes the establishment of a commission to study the feasibility and implications of creating a national sovereign wealth fund (SWF) for the United States. The commission would be composed of representatives from various government agencies, including the Federal Reserve, Treasury Department, SEC, and Department of Commerce, as well as experts from academia. The commission's primary task is to investigate potential revenue sources, asset composition, usage of funds, management logistics, and projected outcomes of such a fund.

The bill mandates the commission to submit a report to the public, the President, relevant Federal agencies, and Congressional committees within two years of its first meeting. This report will include findings, recommendations for legislative action, and any minority views or opinions. The commission is granted powers to hold hearings, detail federal employees, procure expert services, and utilize postal services to conduct its investigation.

Expected Effects

If enacted, this bill would initiate a comprehensive study into the creation of a US sovereign wealth fund. This could lead to future legislation establishing such a fund, potentially altering the landscape of US economic and fiscal policy. The commission's report will inform policymakers about the potential benefits, risks, and operational considerations associated with a national SWF.

Potential Benefits

Provides a structured framework for evaluating the potential of a sovereign wealth fund for the US.
Could lead to better management of government assets and revenue streams.
May identify new sources of funding for public investment and debt reduction.
Could enhance the US's international economic standing and influence.
The study could reveal innovative approaches to economic and fiscal policy.

Potential Disadvantages

The creation of a sovereign wealth fund could lead to political interference in investment decisions.
There is a risk of mismanagement or corruption within the fund.
The fund's activities could potentially distort markets and create unfair competition.
The establishment of the commission and the subsequent study will incur costs.
The fund could face challenges in maintaining transparency and accountability.

Constitutional Alignment

★ ★ ★ ★ ★

The bill's establishment of a commission to study a sovereign wealth fund appears to align with the Constitution's broad mandate to "promote the general Welfare" (Preamble). Congress has the power to legislate on matters related to finance and commerce (Article I, Section 8). The specific structure and powers of the commission, as outlined in the bill, do not appear to conflict with any specific constitutional provisions.

However, the actual operation of a sovereign wealth fund, if established in the future, would need to be carefully designed to avoid potential constitutional challenges. For example, the fund's investment decisions should not violate the principle of equal protection under the law (14th Amendment) or infringe upon individual liberties (e.g., through investments that support censorship or discrimination).