Top Dems Launch Probe Into Elon Musk’s Lucrative Conflicts of Interest
Democrats on the House Oversight Committee sent a letter to the Department of Commerce Tuesday as part of a new investigation into Elon Musk’s glaring conflicts of interest.
In a six-page letter to acting General Counsel John K. Guenther, Ranking Member Gerry Connolly and Vice Ranking Member Jasmine Crockett requested information about how Commerce intends to prevent Musk from skirting ethics rules to use the department to enrich himself.
The letter, shared exclusively with The New Republic, outlined several instances where Commerce’s operations had openly benefited Musk’s businesses. The representatives requested that the department provide a range of communications and documents by April 22 to demonstrate how the officials intended to prevent the billionaire bureaucrat from exploiting the government.
“At Commerce, where Mr. Musk’s companies have received significant financial benefits and have the potential to receive vast amounts of new business, his defiance of recusal laws and control of Commerce’s operations directly benefit his businesses,” the members wrote. “The known conflicts of interest presented by this arrangement are illegal and must be addressed immediately.”
The representatives argued that Musk had been wrongly classified as a “special government employee” as part of an effort to skirt ethics requirements and that his authority to conduct sweeping cuts and recommend massive layoffs as the head of the Department of Government Efficiency was consistent with being in a high-level officer position that requires Senate confirmation. Still, ethics laws were in place to prevent special government employees from taking part in matters that could affect their personal finances.
“The law, however, has not stopped Mr. Musk. On the contrary, Mr. Musk’s ability to enrich himself through DOGE is a textbook example of corruption at the taxpayers’ expense,” the letter stated.
The letter cited several instances in which Donald Trump’s Department of Commerce had been poised to enrich Musk’s businesses, which have raked in a whopping total of $38 billion from government contracts over the past 20 years.
The letter pointed to DOGE’s mass layoffs at the National Oceanic and Atmospheric Administration, launching concerns that Musk intended to use contracts for his companies SpaceX and Starlink to fill in the holes he’d created and that he could reasonably access information at NOAA that could give him an advantage over his competitors.
In March, Commerce Secretary Howard Lutnick announced that his department would begin an overhaul of the Broadband Equity, Access and Deployment Program, or BEAD. After four years, the $42.5 billion project to expand internet access across the country hadn’t yet connected a single person, and Lutnick blamed “woke mandates, favoritism towards certain technologies, and burdensome regulations.”
Lutnick’s promise of a “tech-neutral” approach, which will make way for the use of satellites in addition to fiber-optic cables, could offer a bigger piece of the pie to Musk’s Starlink. The company was originally expected to haul in around $4.1 billion under the previous rules but could rake in anywhere from $10 billion to $20 billion if Lutnick’s changes are accepted.
BEAD’s outgoing director sent a blistering email to colleagues warning that Musk was poised to profit at the expense of the very people they were trying to help.
“Stranding all or part of rural America with worse internet so that we can make the world’s richest man even richer is yet another in a long line of betrayals by Washington,” former BEAD Director Evan Feinman wrote in mid-March.
But Starlink isn’t the only one of Musk’s businesses to benefit from the actions of Commerce.
When Tesla’s sinking stock started tanking last month, Lutnick appeared on Fox News to urge viewers to buy shares of the billionaire bureaucrat’s electric car company.
“I mean who wouldn’t invest in Elon Musk, you gotta be kidding me!” Lutnick raved. Notably, Cabinet members do not typically endorse products, as the Code of Federal Regulations bars public servants from “using their office’s platform to endorse companies and products.”
And Lutnick isn’t Musk’s only ally at Commerce. Michael Grimes, a finance executive who worked closely on deals for Musk’s companies, was recently made senior adviser at Commerce, where he will reportedly head a U.S. sovereign wealth fund that could potentially direct billions to his old friend.
The letter also pointed to Trump’s dismissal of the inspector general at Commerce, who would’ve acted as a watchdog for any corruption or abuse.
Connolly and Crockett’s letter set an April 22 deadline for Commerce to provide detailed lists of all Commerce matters involving Musk’s businesses, all steps Commerce is taking to ensure compliance with ethics laws related to Musk’s businesses, and all actions Commerce is taking to ensure that Musk was not receiving information that would give him a business advantage over his competitors.
The letter also requested the names of any federal employees at Commerce who had been “in any way removed” from their positions by Musk or DOGE, as well as a list of all exemptions that Commerce has received from Trump’s freeze on federal funding.