The Trump administration is being criticized after granting a permit to Trilogy Metals Inc. to build a 211-mile gravel road through the Alaskan wilderness. Trilogy has plans to develop copper, zinc, and mineral deposits in the region, part of a deal in which the federal government secured a 10 percent equity stake in the company through an investment by the U.S. Defense Department.
[NOTE: Trilogy Metals, which is headquartered in Vancouver, Canada, reported that it had signed a letter of intent regarding the $35.6 million equity investment with the U.S. Defense Department in October 2025. This week the company said it was “pleased to provide an update on the previously announced strategic equity investment by the U.S. Department of War (the “DOW”) of approximately US$35.6 million to advance exploration and development of the Upper Kobuk Mineral Projects (“UKMP”) in northwestern Alaska. Discussions with the DOW continue and the letter of intent signed in October 2025 remains in effect.”]
The investment is one in a series of similar moves where the Trump administration has secured equity stakes in private sector companies, including 10% of the American semiconductor giant Intel.
Cato Institute’s director of general economics, Scott Lincicome, told MS NOW: “The US government now holds equity stakes in 30 private companies, up from zero just over a year ago. In some cases, it’s the largest shareholder. This raises massive questions about capital misallocation, government neutrality, and cronyism.”
U.S. Representative Don Bacon (R-NE) replied to Lincicome’s comments: “This is not the Conservative position.” He added, “Government ownership of companies aligns with socialism.”
The US government now holds equity stakes in 30 private companies, up from zero just over a year ago. In some cases, it’s the largest shareholder.
This raises massive questions about capital misallocation, government neutrality, and cronyism, says @scottlincicome on @MSNOWNews. pic.twitter.com/IvBFxOfmYA
— Cato Institute (@CatoInstitute) August 5, 2026
Bloomberg reported from Alaska on the Ambler Road Project, writing: “This controversial remote Alaskan road pits mining and Wall Street interest against some indigenous community leaders and a fragile wilderness, all while setting an entirely new precedent for how America does business.”
The report included clips of billionaire Interior Secretary Doug Burgum boasting of the road as “a literal gold mine,” and local residents calling it, “a sinister plan that does not serve Alaskans.”
[NOTE: The proposal for the Ambler Road Project was repeatedly blocked by the Biden administration.]
After Trump’s announcement regarding the $35.6 million investment, Trilogy Metals’ stock surged from $2 to more than $11 per share. Bloomberg reported, “Investors netted millions of dollars despite not a single ounce being mined.”