GreenergyDaily
Sep. 19, 2025
President Trump's team is weighing a plan to spur the construction of factories and other infrastructure in a bid to jump-start the American manufacturing sector, according to documents and people familiar with the discussions.
Under the plan, the administration would use money from a $550 billion investment fund established as part of trade negotiations with Japan to invest in the development of semiconductors, pharmaceuticals, critical minerals, energy, ships and quantum computing.
Some of the projects would be granted preferential treatment from the government, including expedited regulatory review. The administration is considering granting leases to companies that would give them access to federal land and water, according to the people and documents reviewed by The Wall Street Journal.
The plan would mark a new frontier in Trump's efforts to exert influence over the private sector, giving the government a central role in the reshaping of U.S. manufacturing. It comes as the president has secured a government stake in Intel, negotiated a "golden share" in U.S. Steel and persuaded chip companies to give the U.S. a cut of certain sales to China.
The details of how such a far-reaching program would be implemented are still being ironed out, and those with direct knowledge of the negotiations cautioned that the plans could change. In a statement, White House spokesman Kush Desai said Japan's $550 billion investment fund "will be key to fueling America's next Golden Age."
Trump and Commerce Secretary Howard Lutnick have privately discussed building facilities that would produce gas turbines and generic pharmaceuticals. They have also discussed investing in new nuclear power plants and pipelines, the people familiar with the matter said. Trump announced a joint venture with Japan to build a liquefied natural gas pipeline in Alaska after the negotiations between the two countries.
A memorandum of understanding signed by the U.S. and Japan earlier this month would grant Trump wide latitude to direct how the $550 billion in investments is spent. The memo sets up a committee, chaired by Lutnick, that recommends projects to the president. After costs of a project are split 50-50 between the U.S. and Japan, the U.S. would take 90% of the profits from the investments.
Trump could increase tariffs if Japan declines to fund a selected project entirely, according to the memo, or force Japan to forfeit some of its returns from a project if it is only partially funded. Japanese vendors will be given priority over other foreign companies in the projects, the memo says, but the ultimate structure of the funding—whether it is through equity, debt or loan guarantees—remains unclear.
