As Donald Trump prepares to return to the White House, a bold and potentially transformative proposal to auction distressed federal government assets is regaining traction. This populist plan, which aims to raise over $1.1 trillion, would fund infrastructure and other initiatives targeting America’s struggling working-class communities. With bipartisan support and historical precedent, the initiative is set to become a cornerstone of Trump’s agenda.
Originally introduced during Trump’s first term, the Generating American Income and Infrastructure Act (GAIIN Act) proposed selling distressed federal assets—such as outstanding loans—to private buyers. This effort, led by former Reps. Mike Kelly (R-PA), Ted Budd (R-NC), and William Lacy Clay (D-MO), garnered bipartisan support but ultimately stalled due to political turmoil surrounding Trump’s presidency.
Now, the GAIIN Act is making a comeback. With Trump returning to office backed by a diverse working-class coalition, the proposal has gained new momentum among congressional leaders. Unlike its earlier iteration, which focused solely on U.S. Department of Agriculture (USDA) assets, the revamped plan envisions selling off distressed assets across all federal agencies, broadening its scope and potential impact.
An analysis by Andy Koenig, a former Trump White House official, estimates that implementing this plan could generate over $1 trillion in revenue within a decade. According to Koenig’s findings, the federal government holds $1.9 trillion in outstanding loans and $87 billion in defaulted loan guarantees. By auctioning these loans to private investors, the government could reduce its deficit while stimulating economic growth.
“Congress could require agencies to sell loan obligations held by federal agencies, generating $100 billion annually,” Koenig’s report states. “This policy would prioritize distressed assets, relieving government balance sheets and focusing agencies on their core missions.”
This approach has historical roots: in 1986, President Ronald Reagan employed a similar strategy under the Omnibus Budget Reconciliation Act, successfully raising funds for the federal government.
The GAIIN Act’s resurgence reflects Trump’s ability to unite disparate factions. The original 2018 proposal attracted support from both conservative Republicans and progressive Democrats, including Rep. Frederica Wilson (D-FL) and then-Rep. Sheila Jackson Lee (D-TX). This cross-party appeal is rooted in the plan’s focus on addressing poverty in underserved districts, from urban centers to rural communities.
Lobbyist Sam Geduldig, a longtime advocate for the GAIIN Act, noted its renewed relevance. “Trump’s 2024 electoral coalition was responsible for a seismic political realignment,” Geduldig said. “The GAIIN Act can quickly reward voters for trusting that Trump and Republican majorities will address their real economic concerns.”
Several key lawmakers have voiced strong support for the initiative. House Majority Whip Tom Emmer (R-MN) called the proposal a vital step toward addressing reckless government spending and boosting the economy. Newly elected Sen. Jim Banks (R-IN), a champion of anti-woke policies, echoed this sentiment, emphasizing its potential to spur development in working-class communities.
“Selling distressed federal debt is an innovative way to create jobs and curb the deficit,” Banks said.
Sen. Tim Scott (R-SC), a proponent of Opportunity Zones from Trump’s first term, is also working to link this effort with private investment initiatives that have already generated nearly $85 billion in economic growth.
“My Opportunity Zones initiative laid the groundwork for revitalizing distressed communities,” Scott explained. “This plan builds on that success, ensuring economic opportunity for Americans who need it most.”
Despite the hyper-partisan atmosphere in Washington, the GAIIN Act continues to garner interest from Democrats. Mike Williams, a Democratic lobbyist, stressed the plan’s potential to transcend political divisions.
“Underserved communities aren’t defined by party lines but by need,” Williams said. “This proposal offers relief to those who need it most, and I’m committed to working with both parties to ensure its passage.”
Critics argue that auctioning federal assets might have unintended consequences, such as transferring critical services to private entities. However, supporters contend that the plan’s benefits outweigh the risks. By reducing federal involvement in lending markets and generating substantial revenue, the GAIIN Act aligns with Trump’s broader vision of empowering the working class.
Moreover, the plan’s bipartisan appeal makes it uniquely positioned to succeed in a divided political landscape. Lawmakers from both parties recognize the urgent need to address America’s crumbling infrastructure and economic disparities.
The GAIIN Act’s revival signals a bold shift in federal policy, aiming to redistribute power and resources from Washington elites to everyday Americans. With Trump’s renewed mandate and a coalition of bipartisan support, the initiative could become a defining feature of his administration’s working-class agenda.
Whether this proposal will achieve its ambitious goals remains to be seen. However, its potential to generate $1.1 trillion while addressing systemic inequalities makes it one of the most transformative ideas in recent political history.
As Trump takes office next week, all eyes will be on Congress to see if the GAIIN Act can deliver on its promise to rebuild America’s infrastructure and uplift its working-class communities.
God Bless America! It’s about time that the innovative and creative spirit of our leaders came to a simple solution to such a massive problem. It’s not just about selling off assets that are unproductive, it’s about converting empty properties into thriving business deals. And let’s not forget the billions of dollars that go into the annual maintenance of these unused properties AND the opportunity to stimulate growth by making these areas into productive assets for businesses and the community at large. “Git Her Done!”
Good comment Scott.
Just don’t sell the assets to foreign countries or investors!
If these haters of America in our Congressional seats will only support some of President Trump’s policies, our country will boom for EVERYONE. Of course, I am feel sure this will not happen.