President Donald Trump has shown growing interest in the government taking ownership stakes in U.S. companies, but his administration stepped back from a possible deal involving Spirit Airlines, which shut down operations on Saturday after failing to reach an agreement.
Officials had been considering a plan for the government to invest in the struggling low-cost airline, which has faced rising fuel costs linked to the Iran war. However, talks stalled as the administration weighed whether the deal would bring financial benefits.
Trump made clear his position was driven more by potential profit than ideology. “If we can help them, we will, but it has to be a good deal,” he told reporters on Friday, adding that any move must serve U.S. interests first. He did not immediately comment on the airline’s shutdown.
The Republican president has increasingly supported the idea of government investment in key industries, a shift from traditional party views that favour minimal state involvement in business. Trump argues such steps are necessary to strengthen economic security and compete with countries like China.
He has pointed to investments in major companies, including chipmaker Intel, as examples of how government involvement can generate returns. Trump recently claimed the U.S. made significant profits from its stake in the company.
Under his administration, the government has taken or explored stakes in several sectors, including rare earth minerals, lithium, and nuclear energy, while also shaping deals involving major firms such as U.S. Steel and semiconductor companies like Nvidia and AMD.
Trump has also maintained government control over mortgage giants Fannie Mae and Freddie Mac, saying their value has increased as a result.
Supporters say these moves help level the playing field against foreign competitors that receive state backing. Analysts note that China’s strong industrial policies have pushed the U.S. to rethink its approach.
However, critics argue Trump’s strategy gives the government too much control over private industry. Tad DeHaven of the Cato Institute said the approach reflects a desire for greater influence over the economy.
Others caution that such investments carry risks if not carefully managed. Monica Gorman, a former Biden administration official, said clearer rules are needed to guide when and how the government should invest in businesses.
The potential Spirit Airlines deal, estimated at around $500 million, had also faced opposition from some Republican lawmakers. Trump had suggested the government could later sell its stake for profit if market conditions improved.
While previous administrations have supported industries through loans and incentives, Trump’s approach has relied more on direct government ownership and executive action, marking a notable shift in U.S. economic policy.