The US is considering a sovereign wealth fund. Alaska already has one, and it's funding a universal basic income.

• Bipartisan support is growing for a US sovereign wealth fund.
• The Alaska Permanent Fund, which distributes money to Alaska residents annually, could be a model.
• Challenges include funding sources, legislative hurdles, and state-owned natural resources.

Bipartisan momentum is building around a sovereign wealth fund that could help the United States reduce its national debt or fund ambitious projects.

At the White House, President Joe Biden's top aides have circulated plans for a fund to finance national security interests. And former President Donald Trump recently called for a similar state-owned investment fund to finance "great national endeavors" during a campaign stop at the Economic Club of New York.

It is unclear how an American fund would be funded or how it would operate. However, lawmakers might have something of a model in The Alaska Permanent Fund , which distributes the money it makes to the state's residents as annual dividends.

"The fund was initially established with revenue from mineral extraction, primarily oil, but within a few years after its initiation, its primary source of revenue is investment returns," Sarah Cowan, executive director of the Cash Transfer Lab, previously told Business Insider. "It diversifies the Alaskan economy because, at this juncture, the revenue from this fund primarily does not come from oil."

Alaska's fund offers benefits that mimic a universal basic income — a no-strings-attached, recurring payment distributed to people regardless of socioeconomic status. But there are some key differences. For one, the dividend doesn't come out of taxes; it's paid only annually and doesn't equate to a livable wage.

Federal lawmakers likely see a sovereign wealth fund serving a different purpose, like supporting industries or financing supply chain initiatives. Creating one at the national level also comes with more legislative hurdles.

"Typically, many countries went through special law making to create a SWF, defining the SWF's source of capital, investment mandate, and supervision system," Winston Ma, an adjunct professor at NYU and the author of The Hunt for Unicorns: How Sovereign Funds Are Reshaping Investment in the Digital Economy, wrote to Business Insider by email. "Therefore, it's not a simple corporate setup. It will involve lots of collaborative work between the executive and legislative branches — after the election."

Sovereign wealth funds — like Alaska's or Norway's Government Pension Fund Global, which is the largest in the world — are often funded by wealth generated from state-owned natural resources. The issue is that "natural resources in the US are mostly owned by the states," Ma said. So, consolidating those revenue streams might require some back and forth.