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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →On January 19, 2025, President-elect Donald Trump said his incoming administration would delay enforcement of the TikTok divest-or-ban law and proposed that the United States receive a 50% ownership position in a TikTok joint venture. It was a proposal—not a completed transaction, identified buyer, or finalized ownership structure.
TikTok had gone offline for U.S. users after the statutory deadline arrived. Trump’s statement helped encourage service providers to restore access, and he signed an executive order the next day directing the Justice Department not to enforce the law for 75 days. That order did not repeal or rewrite the law.
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What Trump proposed on January 19, 2025
Trump said he would issue an executive order after taking office to extend the time before the TikTok restrictions took effect. He presented the delay as an opportunity to negotiate a national-security solution rather than immediately allow TikTok to disappear from the U.S. market.
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His proposed structure was a joint venture in which the United States would hold a 50% ownership position. Trump did not explain whether “the United States” meant the federal government, American private investors, or a combination of both. He also did not identify a buyer or provide terms for the proposed transaction.
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The announcement therefore should not be described as the U.S. buying half of TikTok. It was an initial political proposal and commitment to pursue a deal. TechCrunch reported the proposal, while Axios detailed the surrounding legal and operational issues.
Why TikTok went dark
The Protecting Americans from Foreign Adversary Controlled Applications Act took effect on January 19, 2025. President Joe Biden had signed it in April 2024 after Congress passed it, and the Supreme Court upheld the law on January 17, 2025.
The law did not simply order the government to delete TikTok. Instead, it restricted U.S. app stores and internet-hosting providers from distributing, maintaining, updating, or supporting a covered application unless it completed a legally qualifying divestiture.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsThat distinction mattered. TikTok itself was not the only party facing risk. App stores and hosting companies could potentially face statutory penalties if they continued supporting the service after the deadline. TikTok became unavailable to U.S. users for several hours during the weekend of January 18–19 because providers wanted clearer assurances that they would not be punished.
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After Trump publicly said he would delay enforcement and protect companies that helped restore access, TikTok began returning to service. It would be inaccurate to say Trump personally switched TikTok back on: the operational restoration involved TikTok and its service providers, while his statement influenced their legal-risk calculation.
What the TikTok law required
The law targeted foreign-adversary-controlled applications, including TikTok and applications associated with ByteDance. A covered service could remain available only after a qualified divestiture that removed foreign-adversary control and prohibited operational relationships.
The statute included a possible 90-day extension, but it was conditional. The required conditions included a path to completing the divestiture, significant progress toward that result, and binding legal agreements supporting the transaction. It was not an unconditional presidential power to postpone the restrictions whenever desired.
That is why the January announcement raised an immediate legal question: could the incoming president delay enforcement beyond what Congress had authorized?
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Could an executive order override the law?
An executive order can direct executive-branch agencies, including the Justice Department, about enforcement priorities. It cannot itself repeal, amend, or change the text of an act of Congress.
On January 20, 2025, Trump signed an executive order directing the attorney general not to enforce the TikTok law for 75 days. The order also sought to protect service providers from penalties for conduct during the relevant period. Read the White House order.
The important distinction is between:
- Changing the statute’s effective date: something an executive order cannot ordinarily do by itself.
- Delaying enforcement: an executive-branch decision not to pursue penalties for a specified period.
Trump’s order operated in the second category, even though public coverage often described it as delaying the ban. Critics argued that the statutory deadline had already arrived and that the president lacked authority to create a new extension outside the conditions Congress had written. The administration relied on executive enforcement discretion.
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The phrase was the most attention-grabbing part of Trump’s proposal, but also one of the least defined. The January announcement did not establish:
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- whether the U.S. government or private American investors would own the stake;
- which existing TikTok or ByteDance investors would remain involved;
- who would control TikTok’s recommendation algorithm;
- where U.S. user data would be stored and who could access it;
- whether ByteDance would retain an operational relationship;
- how Chinese export-control rules would affect the algorithm; or
- how the arrangement would satisfy the statutory definition of qualified divestiture.
Ownership and control are not identical. A company could have substantial American ownership while a foreign company retained influence over data, software updates, operations, or the recommendation system. Those issues were central to whether a proposed joint venture would address the national-security concerns behind the law.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What happened after the 75-day order?
The administration issued further enforcement delays while negotiations continued. In September 2025, the White House said a proposed U.S.-based joint venture would qualify under the law because foreign-adversary ownership would be reduced below 20%, with the joint venture controlling key aspects of the platform, including its algorithms and code. The White House also described an American-operated cloud environment for U.S. data. See the September 2025 White House announcement.
Independent reporting described important details and qualifications. The Associated Press later reported that Oracle, Silver Lake, and MGX were major investors, each holding 15%, while ByteDance retained a 19.9% stake. AP also reported that ByteDance would license its recommendation algorithm for retraining, a detail that differs in emphasis from the White House’s description of algorithm and code control.
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In January 2026, AP reported that agreements for the new U.S. joint venture had been finalized. The later structure broadly resembled Trump’s initial idea—a U.S.-based joint venture—but it was not the same as the January 19 proposal. The original 50% figure was not a completed ownership term, and the eventual reported structure did not mean that the U.S. government owned 50% of TikTok.
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What the 2026 legal opinion addressed
On July 16, 2026, the Justice Department’s Office of Legal Counsel said the TikTok U.S. Data Security Joint Venture was outside a separate federal-government-device prohibition. The opinion described the venture as independently operated, majority-owned by American investors, and supported by changes to the recommendation algorithm and cybersecurity program. Read the Office of Legal Counsel opinion.
That opinion addressed the federal-government-device statute. It should not be treated as a ruling that eliminated every possible legal, technical, or national-security question under the consumer divest-or-ban law.
Timeline
| Date | What happened |
|---|---|
| April 24, 2024 | President Biden signed the TikTok divest-or-ban law. |
| January 17, 2025 | The Supreme Court upheld the law. |
| January 18–19, 2025 | TikTok became unavailable to U.S. users for several hours. |
| January 19, 2025 | President-elect Trump proposed delaying enforcement and suggested a 50% U.S. ownership position in a joint venture. |
| January 20, 2025 | Trump signed a 75-day non-enforcement order. |
| April–September 2025 | The administration issued additional enforcement delays. |
| September 25, 2025 | The White House described a proposed U.S. joint venture as a qualified divestiture. |
| January 2026 | AP reported that agreements for the new U.S. joint venture had been finalized. |
| July 16, 2026 | DOJ’s Office of Legal Counsel issued its opinion on the joint venture and the federal-government-device prohibition. |
What the proposal meant for users, creators, and businesses
For users, the immediate issue was access: even someone who already had TikTok installed could lose updates, hosting support, or functionality if providers stopped supporting the application.
For creators, advertisers, and businesses, the uncertainty affected audience access and campaign continuity. A presidential statement was not the same as formal legal protection, and the platform’s future depended on enforcement decisions, provider participation, ownership, data governance, and algorithm control.
The later joint venture addressed some of those concerns according to the administration and participating investors, but “U.S.-owned” should be understood precisely. It referred to a particular U.S. joint-venture structure, not necessarily the federal government owning half of TikTok or ByteDance disappearing immediately from the arrangement.
Bottom line
Trump’s January 19, 2025, statement proposed two things: delay enforcement of the TikTok law and pursue a joint venture with a 50% U.S. ownership position. Neither was a completed transaction at the time. His January 20 order directed the Justice Department not to enforce the law for 75 days; it did not repeal the statute.
The later U.S. joint venture followed the broad concept of moving TikTok into a U.S.-based ownership and security structure, but the final reported ownership, ByteDance’s continuing 19.9% stake, algorithm arrangements, and legal treatment were developed later. They should not be presented as details Trump had already secured in January 2025.
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