President-elect Donald Trump’s transition team is aiming to reshape the U.S. International Development Finance Corporation (DFC) into a more powerful entity, one that mirrors the structure and strategic impact of a sovereign wealth fund. The new approach, would enhance the agency’s ability to exert economic influence globally, with a particular focus on key regions such as Panama and Greenland.
Sources close to the transition and former officials have outlined plans for the agency, detailing how strategic investments could be leveraged to strengthen U.S. presence abroad. This move follows a September 2024 speech by Trump at the New York Economic Club, where he proposed the creation of a sovereign wealth fund intended to fund major national infrastructure projects, including highways and airports. The fund, Trump suggested, would be supported through tariffs and other fiscal measures, although specifics remained scarce.
Billionaire entrepreneurs Elon Musk and Stephen Feinberg, co-founder of Cerberus Capital Management and Trump’s nominee for deputy defense secretary, are reportedly among the key figures advocating for the DFC’s transformation. The new vision for the DFC would also reshape America’s foreign aid strategy, aiming to maximize economic influence while reducing traditional aid dependencies.
As discussions intensify, competition for leadership roles within the revamped agency has emerged. Notable candidates include a former top executive from Bridgewater Associates and a former Republican congressman. Interviews for the role have reportedly been held at Trump’s Palm Beach estate.
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