Gold enthusiast Peter Schiff said Monday that President Donald Trump has more in common with Rep. Alexandria Ocasio-Cortez (D-N.Y.) than Ronald Reagan, after the president floated using taxpayer money to buy Spirit Airlines out of bankruptcy.

If the proposal is sincere, Schiff posted on X, “either Trump doesn’t understand how capitalism works or doesn’t believe in its principles.”

The $500 Million Lifeline

Trump confirmed Thursday from the Oval Office that the government is weighing a taxpayer-funded takeover of the carrier, telling reporters he would “do it to save jobs” at the right price.

A tentative deal would hand Spirit a $500 million loan in exchange for warrants that could give the U.S. government as much as a 90% stake, according to CNBC. Spirit’s lawyer told a New York bankruptcy court Thursday that talks were at an advanced stage.

The airline filed for Chapter 11 protection in August 2025, its second bankruptcy in under a year. Common stock was canceled in the prior restructuring, and new shares now trade over-the-counter as Spirit Aviation Holdings (OTC:FLYYQ).

GOP Joins The Pile-On

Schiff is not the only conservative voice unhappy with the plan. Sen. Ted Cruz (R-Texas) called the bailout “an absolutely TERRIBLE idea” and compared it to the 2008 TARP rescues.

Sen. Tom Cotton (R-Ark.) said that if private investors don’t think Spirit can be run profitably, “I doubt the US Government can either.”

Transportation Secretary Sean Duffy has also reportedly voiced skepticism.

United Airlines Holdings (NASDAQ:UAL) CEO Scott Kirby has argued against any bailout, calling the discount carrier’s model “fundamentally flawed” on the company’s Q1 earnings call.

What Prediction Markets Are Saying

Traders are pricing the bailout as more likely than not. Kalshi’s contract on which companies the U.S. will take a stake in this year has Spirit at 64%. Polymarket’s tighter contract on whether the stake happens by May 31 is around 56%.

JetBlue Airways (NASDAQ:JBLU) was blocked from acquiring Spirit by the Biden administration in 2024, a decision the White House now blames for the airline’s current trouble.

Frontier Group Holdings (NASDAQ:ULCC) has also previously circled the troubled carrier.

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