Top officials at the Pentagon are “thinking about” whether the US should acquire equity stakes in leading defense contractors such as Lockheed Martin, Commerce Secretary Howard Lutnick said Tuesday, Report informs via CNBC.
The Cabinet secretary, in an interview on CNBC’s “Squawk Box,” revealed the Defense Department’s interest in taking those stakes days after the US government acquired 10% of Intel stock in a roughly $9 billion deal.
Lutnick was asked if the Trump administration would repeat that move with other companies that do business with the government.
“Oh there’s a monstrous discussion about defense,” Lutnick replied.
Lockheed, which makes most of its revenue from federal contracts, is “basically an arm of the US government,” he said.
“But what’s the economics of that? I’m going to leave that to my secretary of Defense and the deputy secretary of Defense.”
“These guys are on it and they’re thinking about it,” he said.
Lutnick added that President Donald Trump is rethinking how the US ought to finance its munitions and other defense capabilities.
“I tell you, the way it has been done has been a giveaway,” Lutnick claimed. His remark could suggest that the Trump administration is considering a major overhaul of Pentagon appropriations, which are approved annually by Congress.
A Lockheed spokesperson told CNBC in a 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.”