The Trump administration converted approximately $8.9 billion in CHIPS Act grants into a roughly 9.9% to 10% equity stake in Intel, making the US federal government the company’s largest shareholder. The administration is proposing $5,000 direct payments to approximately 200 million American adults, with a total price tag easily exceeding $1 trillion. Commerce Secretary Howard Lutnick is using the Intel equity stake to justify the payment plan, arguing that the administration can generate returns on its investments rather than simply spending. Intel’s stock surged roughly 290% following the announcement, but the government secured no governance or voting rights as part of the arrangement. Existing shareholders have filed lawsuits related to the equity deal due to the dilution of their ownership stakes.
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