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By Andrew Stanton
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President Donald Trump's deal with Intel that would give the federal government a 10 percent stake in the company sparked pushback from at least two Republican senators this week.
A White House spokesperson responded to these concerns in a statement to Newsweek, writing that the administration is "ensuring that taxpayers are able to reap the upside of the federal government's investments into safeguarding our national and economic security."
Why It Matters
Trump announced the deal with Intel, a computer chip-producing company that has struggled in recent years, last week. It is a rare, but not unprecedented, instance of government intervention into a private business from a Republican administration and marks a shift from typical conservative economic orthodoxy.
Read More on Politics
The deal is intended to boost Intel, which has faced challenges following years of missteps, reported the Associated Press. But not all Republicans are comfortable with the deal, underscoring tension between Trump and more traditional fiscal conservatives.
What To Know
Trump announced the deal in an August 22 Truth Social post.
"The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter," he wrote in the post.
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Senator Rand Paul, a Kentucky Republican known as a fiscal conservative, criticized the deal on X.
"If socialism is government owning the means of production, wouldn't the government owning part of Intel be a step toward socialism? Terrible idea," Paul wrote.
Senator Thom Tillis, a North Carolina Republican, also raised concerns about the deal in an interview with journalist Major Garrett.
"I don't care if it's a dollar or a billion dollar stake," Tillis said. "That starts feeling like a semi-state owned enterprise, à la CCCP. I don't believe that the U.S. government should be picking winners and losers because you won't always be right."
He questioned how this "reconciles with true conservatism and true free market capitalism."
"Does anybody really believe that any opinion except the opinion of the administration is really going to matter in boardroom discussions going forward?" he said.
However, Senator Bernie Sanders, a Vermont independent who caucuses with Democrats, offered praise for the deal in a statement.
"If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment," Sanders said.
The U.S. government is getting the stake through the conversion of $11.1 billion in previously issued funds and pledges. Intel emphasized that the arrangement does not give the government access to company information or any representation on the Board.
Commerce Secretary Howard Lutnick pushed back on these criticisms on Tuesday.
"It's not socialism. This is capitalism. If you give someone $11 billion—who is just building in America. They're not doing anything special, they're just building in America. Their CEO told the president he didn't need the grant, and you said, 'Well then why don't we get something for it,' " he said during a meeting with the presidential cabinet**.**
What People Are Saying
White House spokesperson Kush Desai told Newsweek: "The previous administration pushed legislation to dole out billions in grants that prioritized DEI over taxpayer return to some of the largest semiconductor companies in the world. Now the Trump administration is ensuring that taxpayers are able to reap the upside of the federal government's investments into safeguarding our national and economic security – all while simultaneously pushing supply-side reforms like deregulation and The One Big Beautiful Bill's tax cuts to let the free market restore America as the world's most dynamic economy."
Intel's CEO, in a statement announcing the deal: "President Trump's focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country's economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership."
Businessman and Shark Tank star Kevin O'Leary, on X: "The U.S. government just announced it's taking a stake in Intel, and let me be clear: I abhor this idea. America has thrived for over 200 years because the government stayed in its lane while the private sector attracted global capital and rewarded innovation. We let bad companies fail. That's capitalism."
Democratic strategist David Axelrod, on X: "During the Great Recession in '09, when @BarackObama stepped in and the government took a stake in GM and Chrysler to save them from collapse, the @GOP howled 'socialism!' Trump now demands Intel give the government a 10% stake in their company, and what does the GOP say? Crickets. Nada. Nothing."
What Happens Next
Trump told reporters at the White House on Monday that he hopes to have "many more cases like" Intel.
Update 8/26/2025 3:25 p.m. ET: This article was updated with additional information.
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