Commerce Secretary Howard Lutnick said Tuesday the Trump administration is “thinking about” taking equity stakes in major defense contractors, a move that could mirror the government’s recent purchase of 10% of Intel.
Appearing on CNBC’s Squawk Box, Lutnick was asked about whether Washington should seek ownership shares in firms like Palantir or Boeing that rely heavily on government contracts. He responded that discussions were already underway regarding defense companies.
“Lockheed Martin makes 97 percent of their revenue from the U.S. government. They are basically an arm of the U.S. government,” Lutnick said. “They make exquisite munitions … but what’s the economics of that? I’m going to leave that to my secretary of Defense and deputy secretary of Defense. These guys are on it, and they’re thinking about it.”
The comments came after President Donald Trump announced last week that Intel had agreed to sell the U.S. government a 10% stake, which he hailed as a “great deal.”
Lockheed Martin said Tuesday it continues a “strong working relationship” with the administration. But some Republicans voiced alarm, with Sen. Rand Paul (R-KY) calling the Intel deal “a terrible idea” and warning it edges toward socialism.
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