The Trump administration wants the U.S. government to start owning pieces of major defense companies. That includes Lockheed Martin, Palantir, and Boeing. Commerce Secretary Howard Lutnick confirmed this live on CNBC Tuesday.
He said Pentagon officials are “thinking about” it. He didn’t hold back. This came just days after Trump’s government bought 10% of Intel for around $9 billion.
Howard was asked directly if the White House would do the same thing with other companies that work closely with the government. “Oh there’s a monstrous discussion about defense,” he replied. He pointed straight at Lockheed Martin, saying it’s “basically an arm of the U.S. government.
The Commerce Sec added, “But what’s the economics of that? I’m going to leave that to my secretary of Defense and the deputy secretary of Defense.” Still, he made it clear: “These guys are on it and they’re thinking about it.”
Trump questions old Pentagon spending rules
Howard said Trump is rethinking how America pays for weapons. “I tell you, the way it has been done has been a giveaway,” he said. He didn’t explain, but that line hints at a possible shakeup of how defense money flows, including changes to the Pentagon’s annual budget approvals by Congress.
If Trump pushes this further, it means government cash will buy part of the companies themselves. The Trump administration already made a move on Intel, a deal Howard called a win for national security and economics. “It strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge,” he said.
But critics, even conservatives, are already pushing back. They say Trump’s buying spree goes against free market rules. Some say it’s risky for Intel. Others say it’s risky for capitalism itself.
Economist Scott Lincicome from the libertarian Cato Institute wrote in The Washington Post that Intel might now be forced to make political choices instead of business ones. Senator Rand Paul didn’t sugarcoat it. He posted, “If socialism is government owning the means of production, wouldn’t the government owning part of Intel be a step toward socialism?”
Defense giants on the radar: Lockheed, Boeing, RTX, and more
Lockheed Martin is already deep in the U.S. system. It makes most of its revenue from federal contracts. It’s not just fighter jets and missiles. They work on everything from satellite defense to cybersecurity. A spokesperson for Lockheed responded to CNBC with a short statement:
“As we did in his first term, we are continuing our strong working relationship with President Trump and his Administration to strengthen our national defense.”
But Lockheed isn’t alone. According to DefenseNews’ 2024 list, Lockheed ranks as the world’s top defense contractor by revenue. The other top players in the U.S. include RTX, Northrop Grumman, General Dynamics, and Boeing. And based on Howard’s comments, it sounds like any company with a large federal defense contract is now under the microscope.
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