Commerce Secretary Howard Lutnick said Tuesday the Trump administration is weighing whether to acquire equity stakes in major defense contractors, including Lockheed Martin (NYSE: LMT), signaling a potential expansion of government ownership in the private sector.
Speaking on CNBC, Lutnick said there is a “monstrous discussion” at the Pentagon about the federal government taking partial ownership of defense companies that depend heavily on taxpayer funding.
“Lockheed Martin makes 97% of their revenue from the US government. They are basically an arm of the US government,” Lutnick said during the “Squawk Box” interview.
The comments come shortly after the administration acquired a roughly 10% stake in Intel Corp (NASDAQ: INTC). through funding under the CHIPS and Science Act. President Donald Trump said Monday in a Truth Social post: “I will make deals like that for our Country all day long.”
Defense Secretary Pete Hegseth and Deputy Defense Secretary Steve Feinberg are “thinking about” taking stakes in military contractors, Lutnick said. He argued that companies receiving substantial taxpayer support should provide the public with direct financial interest.
“There’s a lot of talking that needs to be had about how do we finance our munitions, acquisitions,” Lutnick said.
Lockheed Martin, the world’s largest defense contractor by revenue, said in a statement it would continue its “strong working relationship with President Trump and his Administration to strengthen our national defense.” The Pentagon did not immediately respond to requests for comment.
This move would be a significant expansion of government involvement in the defense industry, though it would be partial rather than full nationalization of companies. Other major US defense contractors that could be affected include RTX, Northrop Grumman, General Dynamics, and Boeing.
Critics have questioned how far the administration might extend such government ownership, with some asking whether companies like SpaceX or other private firms could face similar pressure.
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