Howard Lutnick reveals Pentagon is mulling equity stake in defense contractors
The article reports that commerce Secretary howard Lutnick revealed the Pentagon is considering acquiring equity stakes in defense contractors that already receive considerable business from the U.S. government. Lutnick noted, for example, that lockheed Martin derives 97% of its revenue from the U.S. government, effectively making it an extension of the government. He highlighted ongoing discussions on how to finance munitions acquisitions more effectively, implying current methods resemble a “giveaway.” This consideration follows the government’s recent purchase of a 10% stake in Intel after the company received $9 billion under the 2022 CHIPS and Science Act. Former President Donald Trump supports this approach and has suggested that similar investments in other companies may occur soon. The Pentagon and Lockheed martin did not provide comments for the article.
Howard Lutnick reveals Pentagon is mulling equity stake in defense contractors
Commerce Secretary Howard Lutnick said the Defense Department is considering taking an equity stake in defense contractors that already receive significant business from the Pentagon.
“There’s a monstrous discussion about defense. I mean, Lockheed Martin makes 97% of their revenue from the U.S. government. They are, basically, an arm of the U.S. government,” Lutnick said on CNBC’s Squawk Box on Tuesday. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense.”
“These guys are on it, and they’re thinking about it. But I tell you what, there’s a lot of talking that needs to be had about how do we finance our munitions acquisitions?” Lutnick said. “Donald Trump [is] at the head, thinking about what is the right way to do it. I tell you, the way it has been done has been a giveaway.”
Lutnick’s comments follow the government’s acquisition of a 10% stake in the computer chipmaker Intel. This move came after Intel received $9 billion in funding under the 2022 CHIPS and Science Act.
TRUMP DEFENDS INTEL STAKE AFTER CRITICIZING SOCIALIST DEMOCRATS
The Washington Examiner reached out to the Pentagon and Lockheed Martin for comment.
Trump implied the United States is “going to have many more cases like” Intel soon.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
