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Democrats demand probe into Musk’s alleged ‘conflicts’ over billions in fed contracts

February 7, 2025
in News, Politics
GOP blocks Musk from congressional subpoena as DOGE continues to access agency data
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House Judiciary Democrats sent a terse letter Friday to newly minted Attorney General Pam Bondi, expressing concerns that Elon Musk’s role at DOGE creates “conflicts of interest” due to what they said are his “sprawling financial interests” in federal contracts and subsidies.

Democrats contend that Musk’s companies’ routine engagement with federal agencies on defense contracts, telecommunications regulations, and energy policy is complicated by his participation in governmental matters impacting those sectors — which risks violating the law because his financial interests could be directly implicated.

“Mr. Musk’s position as an SGE demands heightened scrutiny,” the lawmakers write in their letter to Bondi that was first obtained by ABC News. “The law’s criminal and civil enforcement mechanisms, which fall solely under the DOJ’s authority, must be rigorously applied to prevent actual or perceived conflicts of interest.”

The group asserts that 18 U.S.C. § 208 “explicitly prohibits” federal employees, including Special Government Employees like Musk, from “participating personally and substantially in a particular Government matter that will affect his own financial interests, as well as the financial interests of certain individuals with whom he has ties outside the Government.”

The letter was also sent to David Huitema the director of the U.S. Office of Government Ethics.

The AG’s office and Huitema didn’t immediately comment about the request.

Democrats also believe Musk is subject to “strict disclosure standards” established by the Stop Trading on Congressional Knowledge, or STOCK Act, which requires Musk to publicly disclose financial interests that could create conflicts with his federal role atop DOGE.

SpaceX and its subsidiary Starlink, companies that Musk owns, have received approximately $1.7 billion from NASA, $1.3 billion from the Air Force, and $199.2 million from the Defense Information Systems Agency — a massive total over $3.3 billion in just the past 12 months, according to USASpending.gov.

Democrats reject that the White House believes it’s up to Musk to self-determine whether there is a conflict of interest. President Trump has repeatedly said that if there was a conflict, Musk would not work on areas of concern.

“If there’s a conflict then we won’t let him get near it,” Trump said Monday. “He would know not to do it, so we haven’t had that yet. But if there was a conflict, we wouldn’t let him work in that area.”

In their letter, Democrats urged DOJ and OGE “to promptly investigate” whether Musk’s actions or engagements as an SGE have violated law and to “take appropriate enforcement action if warranted.”

“The American people deserve assurances that no individual, regardless of stature, is permitted to influence policy for personal gain,” the letter states. “Failure to enforce this statute risks eroding confidence in the impartiality of federal decision-making.”

The letter is signed by 11 Democrats on the Judiciary Committee, including the ranking Democrat Rep. Jamie Raskin, and Reps. Deborah Ross, Hank Johnson, Pramila Jayapal, Becca Balint, Sydney Kamlager-Dove, Steve Cohen, Eric Swalwell, Mary Gay Scanlon, Jasmine Crockett, Dan Goldman — as well as Rep. Valerie Foushee of North Carolina.

The post Democrats demand probe into Musk’s alleged ‘conflicts’ over billions in fed contracts appeared first on ABC News.

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