The Treasury and Commerce Departments are drafting a plan detailing how a federal sovereign wealth fund might be structured, funded, and managed.

US President Donald Trump announced last week the creation of the first American sovereign wealth fund. He had pledged during his campaign to pursue such a policy, but this time, he formalized it with an executive order directing a plan for the fund to be developed within 90 days.

President Donald Trump’s order for the proposed fund calls for a plan within 90 days that details the vehicle’s purpose, funding mechanism, and governance structure.

Trump’s executive order creates a sovereign wealth fund to invest in key sectors and possibly acquire TikTok. Here’s how sovereign wealth funds work.

President Trump signed an executive order that puts in motion plans for a U.S. sovereign wealth fund. Here's what a sovereign wealth fund is and how it works.

Trump also said that if this fund goes through, the money in it could be used for something like buying TikTok. The app’s fate has been up in the air since a law requiring new ownership took effect in January. Rachel Wellhausen, a professor of government at UT Austin, said there are many ways to operate a sovereign wealth fund.

Trump proposed setting up a fund that would finance "great national endeavors" including infrastructure projects while campaigning last year.

President Donald Trump’s executive order to create a plan for a U.S. sovereign wealth fund would follow those of Norway, Saudi Arabia, China and others.