Possible Spirit rescue fuels new fears about government involvement in business

TravelPossible Spirit rescue fuels new fears about government involvement in businessThe U.S. could end up owning 90% of the struggling budget airline in a potential deal under discussion. Experts warn it would set a dangerous precedent.Listen to this article with a free account00:0000:00Add NBC News to GoogleSpirit Airlines Nears Bankruptcy Bailout From Trump Administration02:52Get more newsLiveonShareAdd NBC News to GoogleApril 23, 2026, 8:00 AM EDTBy Allie CanalThe Trump administration is discussing a $500 million rescue deal for Spirit Airlines that could leave the federal government owning up to 90% of the company after it emerges from bankruptcy.Subscribe to read this story ad-free Get unlimited access to ad-free articles and exclusive content.That could help preserve a low-cost option for travelers. But experts warn it could create a problematic chain reaction, particularly when it comes to other struggling companies looking for financial relief.“This equity stake stuff has opened up a Pandora’s box,” Tad DeHaven, a policy analyst at the libertarian Cato Institute, told NBC News on Wednesday.DeHaven pointed to a growing list of government-backed equity deals across a range of industries over the past year that signal a broader expansion of federal involvement in private and public companies.Those deals include equity-sharing agreements with semiconductor companies like Nvidia, Intel and AMD; mining firms such as MP Materials and USA Rare Earth; as well as nuclear energy and industrial companies like Westinghouse Electric Co. and U.S. Steel.“Once you open that box,” DeHaven said, referring to those recent equity deals, it’s only a matter of time until “somebody is going to get in trouble, and they’re going to see that their [only] option to survive is to get money from the federal government.”Wall Street is raising similar concerns. JPMorgan analyst Jamie Baker warned in a recent client note that “should the administration afford any sort of cash infusion, we...