Commerce Secretary Lutnick Discloses Trump Considering Equity Stakes in Lockheed Martin, Boeing, Palantir

Commerce Secretary Howard Lutnick revealed that Trump administration military leaders are ’thinking about’ acquiring equity stakes in major defense contractors including Lockheed Martin, Boeing, and Palantir Technologies. Lutnick justified the proposal by noting Lockheed Martin derives 97% of its revenue from the U.S. government, claiming they are ‘basically an arm of the US government’ and that past contracts have been ‘a giveaway.’ The disclosure came days after the government took a 10% stake in Intel, suggesting a systematic shift toward state capitalism where the government becomes shareholder in politically favored corporations. Taking equity in defense contractors creates severe conflicts of interest: government officials who award contracts and set budgets would simultaneously profit from maximizing payments to those same companies. This model resembles Russian state-controlled capitalism where government ownership blurs with private enterprise, eliminating competitive procurement while enriching officials with stakes in contractor success. The proposal fundamentally corrupts defense spending decisions by making contract size directly benefit government shareholders rather than serving taxpayer interests.