GOP Bill Seeks to Codify Trump's Equity Stake in Private Firms
The proposed DPA Modernization Act of 2026 aims to formalize government equity investments in private companies, potentially impacting national security and market dynamics.
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Rep. Warren Davidson's DPA Modernization Act of 2026 proposes to enhance the Defense Production Act (DPA) by increasing the DPA Fund's budget from $750 million to $2 billion and permitting equity investments in private companies.
The bill allows for government ownership of up to 15 percent in companies, contingent upon the Treasury secretary's assessment of equity investment conditions. Critics argue this could lead to indefinite government holdings under the guise of national security. The act aims to codify current practices initiated by Trump, raising concerns about the role of government in private enterprise and the implications for market integrity and taxpayer investments.
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