Economy January 22, 2026

Evaluating the Feasibility and Implications of a U.S. Acquisition of Greenland

Examining the legal, financial, and geopolitical considerations of a potential purchase of Greenland by the United States

By Maya Rios
Evaluating the Feasibility and Implications of a U.S. Acquisition of Greenland

President Donald Trump has expressed interest in purchasing Greenland from Denmark, despite firm denials from Danish officials. This article delves into the complexities surrounding such an acquisition, including the high estimated cost, constitutional limitations requiring Congressional approval, and geopolitical implications related to Arctic security and natural resource access.

Key Points

  • Acquiring Greenland could cost up to $1 trillion, covering payments to Denmark, Greenland's inhabitants, and substantial infrastructure and defense investments.
  • Adding new U.S. territory requires a treaty approved by two-thirds of the Senate, illustrating significant constitutional and political challenges for such a purchase.
  • Geopolitical motivations include securing Arctic strategic advantages and access to Greenland's untapped rare-earth and critical minerals, despite existing U.S. military presence and Danish security commitments.

President Donald Trump has periodically reiterated his intent to acquire Greenland, an expansive Arctic island currently governed by Denmark. Despite Denmark's consistent rejection of any sale, Trump suggested on Wednesday that military action to obtain Greenland was off the table, citing a NATO agreement to secure U.S. access to the territory. Nevertheless, comprehensive details about this agreement remain scarce.

The absence of an existing market for territories makes determining Greenland's value speculative. Nevertheless, Otto Svendsen, an Arctic expert at the Center for Strategic and International Studies, indicated that acquiring Greenland could cost nearly $1 trillion. This estimation encompasses payment for the land itself, compensations to Greenland’s inhabitants, and the substantial expenditures needed to support its social infrastructure, defense, and upkeep.

The prospect of allocating such an immense sum has triggered criticism from investors and political opponents alike, especially given the United States' substantial national debt of $38 trillion. Some critics argue funds might be more judiciously used to address pressing domestic concerns, such as healthcare, as expressed by Democratic Representative Brendan Boyle from Pennsylvania.

Any territorial addition to the United States must clear significant constitutional hurdles. The expansion of U.S. territory traditionally requires a treaty, ratified by a two-thirds Senate majority—equivalent to 67 senators. This process means President Trump would need bipartisan support, including from at least 14 Democrats, assuming unanimous Republican backing. However, skepticism about purchasing Greenland transcends party lines; for instance, Senator Lisa Murkowski of Alaska emphasized respecting Greenland's sovereignty as a non-negotiable principle.

Given Greenland’s modest population of roughly 57,000, statehood appears improbable. Alternatives such as establishing a “compact of free association,” which ties financial aid to a U.S. security presence, or a territorial status akin to Guam or Puerto Rico, could be considered. Yet, federal lands fall under congressional jurisdiction, further complicating unilateral executive action.

The U.S. Constitution entrusts Congress with control over federal expenditures. Although the current Republican majority has shown support for President Trump's executive spending initiatives—sometimes bypassing congressional approval—allocating hundreds of billions of dollars, comparable to the entire defense budget, would be challenging without legislative endorsement.

Strategically, proponents of the Greenland acquisition argue it is essential to counter emerging Russian and Chinese interests in the Arctic and to compensate for Denmark's perceived inability to guarantee the island’s security. However, the United States maintains an existing base on Greenland with potential for expansion. Additionally, Greenland possesses abundant rare-earth and critical minerals, though extraction of oil and gas is currently prohibited due to environmental restrictions. Mining activities face bureaucratic obstacles and opposition from indigenous groups.

Senator Mitch McConnell underscored the robustness of NATO alliances and U.S.-Danish military cooperation, noting that the administration had not identified any essential necessity for Greenland that Denmark’s sovereign people would not accommodate. This statement highlights the strong existing relationships and strategic partnerships that complicate unilateral U.S. acquisition efforts.

Risks

  • The constitutional requirement of Senate ratification poses a major obstacle, needing bipartisan support which may be difficult to secure.
  • High financial costs amidst a large national deficit raise both economic and political doubts regarding the acquisition's prudence.
  • Potential opposition from Greenland’s population and indigenous groups, as well as Denmark’s firm stance against selling, introduces diplomatic complications.

More from Economy

House Prepares Vote to End Brief Partial Shutdown, Final Ballot Expected Tuesday Feb 2, 2026 France’s 2026 Budget Clears Parliament After Concessions, Targets 5% Deficit Feb 2, 2026 Cboe Holds Early Talks to Bring Binary Options Back to Retail Traders Feb 2, 2026 Administration to Build $12 Billion Critical Minerals Reserve to Shield U.S. Manufacturing Feb 2, 2026 Investors Pile Into Gold and Miner ETFs in January as Safety Demand Rises Feb 2, 2026