Actually, neither. Jefferson’s ideas, put into the Land Ordinance of 1785, is that the land, as much as possible, belongs in the hands of INDIVIDUALS. Trump’s wrong but the states don’t have rights to seal this off in unlimited ways either.
Outside of the Constitution the states are sovereign which means the PEOPLE of the states may decide how they want to manage the lands of their state. State governance is LOCAL and the people of their state may choose how they want the state run, except the Constitution demands that state government must be a republic (Art 4, Sec 4).
So if the majority of a people of a state want their state lands in the hands of individuals, then they can push that objective through initiatives, propositions, and/or elected state officials. The feds have nothing to say on the matter.
Generally I think that is how state lands are managed - individual ownership.