JPMorgan Outlines $10 Billion Plan in Private Sector’s Latest U.S. Investment Under Trump

The bank said it plans to facilitate and finance roughly $1.5 trillion in support of critical industries over the next decade. (Dreamstime)

Key Points

• JPMorgan Chase plans to invest up to $10 billion in companies to enhance U.S. national security and economic resiliency.
• The initiative, a 10-year plan, aims to facilitate and finance approximately $1.5 trillion in critical industries.
• Focus areas include energy independence, defense, frontier technologies, and supply chain and advanced manufacturing.

JPMorgan Chase plans to invest up to $10 billion in companies it views as critical to protecting U.S. national security. Part of a broader $1.5 trillion initiative by the firm, it is the latest commitment by a blue-chip company as the Trump administration touts patriotic efforts by the private sector.

The nation’s largest bank said Monday the $10 billion backing would take the form of direct equity and venture capital investments as part of a decadelong plan that it calls the Security and Resiliency Initiative.

It is meant to facilitate and finance investments across areas including defense and aerospace, critical minerals, pharmaceuticals, and quantum computing, the bank said.

JPMorgan Chief Executive Officer Jamie Dimon said Monday on a call with reporters that discussions around these plans started “a couple of months ago” and build on concerns he has raised in annual shareholder letters.

“It was not in conjunction with anyone in the government,” Dimon said in response to a reporter’s question about whether he has spoken with President Donald Trump about the investment plans.

Dimon said later on the call he has “not spoken to anyone in the government” about these investments.

“This is 100% commercial. We are going to take our resources of research, bankers, and investors, and we are going to scour the United States—and maybe the world—for new opportunities,” Dimon added.

The bank said in a slide attached to its announcement that autonomous mobile robots, nuclear energy, solar, spacecraft, shipbuilding, and artificial intelligence are among subsectors it is initially targeting.

It will hire more bankers, investment professionals, and other experts to support the investments and will also create “an external advisory council of business and government leaders.”

Shares of JPMorgan rose 2.4% on Monday while the S&P 500 rose 1.5%.

JPMorgan’s announcement builds on years of the bank’s investments in the U.S. economy under different administrations, economic conditions, and political backdrops. The Trump administration has touted recent investments from the private sector, a recognition that adds new importance to efforts such as JPMorgan’s.

A press release in August listed “new U.S. investment in President Trump’s second term” spanning technology, healthcare, financial services, and other industries.

Investors, shareholders, and government officials will monitor how these investments unfold. On Monday, after a reporter questioned whether the bank’s plans would subject it to new areas of regulation or oversight, Dimon said, “I hope not,” as some call participants laughed.

JPMorgan and competitors Wells Fargo, Goldman Sachs, and Citigroup are set to report third-quarter earnings results on Tuesday morning. Analysts expect all four firms’ profits and revenue to rise from a year ago.

Write to Rebecca Ungarino at rebecca.ungarino@barrons.com and Nate Wolf at nate.wolf@barrons.com