Qualified National Defense Funds: A Private Market Solution for Industrial Base Revitalization

Authors

  • Andrew J. Elgin U.S. Army & U.S. Military Academy at West Point
  • Frank J. Fabozzi Johns Hopkins Carey School of Business

Abstract

This article proposes a new capital formation mechanism, Qualified National Defense Funds (QNDFs), which is designed to mobilize private equity and credit into strategically vital sectors that support U.S. industrial resilience and national security. Drawing on lessons from the Opportunity Zone program, the paper argues that tax-incentivized investment structures can align long-horizon private capital with public defense goals without relying on recurring subsidies or direct government control. The article outlines the governance, certification, and risk mitigation strategies to ensure program credibility, prevent adversarial infiltration, and support durable public-private alignment. Through comparative analysis and implementation guidance, the QNDF framework offers a scalable, market-compatible tool for reindustrialization in an era of geopolitical competition.

Author Biographies

Andrew J. Elgin , U.S. Army & U.S. Military Academy at West Point

Andrew J. Elgin is a Captain in the U.S. Army  in the Finance Corps and an instructor in economics in the Social Sciences Department at the U.S. Military Academy at West Point. West Point,  NY

Frank J. Fabozzi , Johns Hopkins Carey School of Business

Frank J. Fabozzi is professor of practice in finance at Johns Hopkins University’s Carey Business School. Baltimore, MD

Published

2026-06-15

Issue

Vol. 24 No. 2 (2026): Winter 2026

Section

Articles