In an interview with CNBC on June 11, 2025, Howard Lutnick, U.S. Secretary of Commerce, announced thrilling news. To that point, he disclosed that the Trump administration is actively looking into taking equity stakes in major defense manufacturers. It’s hard to overstate the importance of this possible shift. If enacted, it would change the fundamentals of how the government works with big defense contractors like Lockheed Martin.
In the interview, Lutnick focused on the fact that there is a huge, “monstrous conversation about defense” taking place inside the administration. In particular, he stressed the effort to buy equity positions in firms that do business with the federal government. This focus is in keeping with larger strategic aims to project and strengthen our national security and defense posture.
Lutnick stated, “These guys are on it and they’re thinking about it,” referring to military leaders involved in the discussions. The Trump administration’s approach is eerily similar to strategies being employed by these other sectors. Lutnick noted that these same types of considerations are now being used to lure companies such as Intel. That’s a really powerful sign. The federal government could look to deepen its fiscal partnerships with major actors in industries that have outsized influence on national priorities.
When pressed on the details of the administration’s plan, Lutnick argued that it was all about economics. He continued, I’m just not going to be micromanaging that – I’m going to leave that to my Secretary of Defense and the deputy Secretary of Defense. This shows that, even though the dialogue may be present, the exact points of implementation will come down to the discretion of military leadership.
As the dialogue progresses, it remains clear that the U.S. government is likely to continue pursuing stakes in companies integral to defense operations. Lutnick is committed to finding new and better ways to improve defense capabilities. He’s doing so by making sure contractors are aligned with the government’s goals.