Topline
Billionaire Elon Musk on Thursday faced his first formal complaint alleging his work for the federal government violates conflict of interest laws, as a campaign finance watchdog alleged his involvement with a deal between the Federal Aviation Administration and his own company Starlink is unlawful—though Musk is unlikely to face any criminal penalties.
Elon Musk speaks during an event with President Donald Trump in the Oval Office at the White House … [+]
Key Facts
The Campaign Legal Center filed a complaint Thursday with the inspector general overseeing the Department of Transportation, which asks the IG to investigate Musk’s involvement with the FAA deal and whether it ran afoul of federal law.
Federal law prohibits any government employees—including “special government employees” like Musk—from “participat[ing] personally and substantially” in any “particular matter[s]” in which the employee, their spouse, their companies or other business partners have any “financial interest,” with any “willful” violations being punishable by up to five years in prison or fines of up to $50,000 per offense.
The CLC raised concerns based on public reporting regarding the FAA deal—in which the agency is reportedly working with Starlink on improvements to its air traffic control systems—with the complaint citing a Washington Post report saying the FAA was “close to canceling” its existing $2.4 billion contract with Verizon in favor of working with Starlink, a division of Musk’s company SpaceX, as well as public comments from Transportation Secretary Sean Duffy saying Starlink would “play some part” in upgrades to the agency’s systems.
Musk “appears to have personally and substantially participated” in the dealings around the FAA and Starlink, the CLC alleges, citing the billionaire’s known role overseeing DOGE.
Musk’s personal involvement with Starlink at the FAA appears to violate the prohibition on federal workers participating directly in government matters that affect them, the CLC argues, pointing out that awarding Starlink a “multibillion” dollar government contract with the FAA would “have a real, as opposed to speculative … possibility of affecting the financial interests of Musk, Starlink, and SpaceX.”
SpaceX, Musk, the FAA, White House and Inspector General’s Office at the Transportation Department have not yet responded to requests for comment, but Musk and the Trump administration have previously downplayed any concerns about Musk’s potential conflicts of interest, and White House press secretary Karoline Leavitt has said, “If Elon Musk comes across a conflict of interest with the contracts and the funding that DOGE is overseeing, then Elon will excuse himself from those contracts.”
Crucial Quote
“The evidence suggesting that Musk has blatantly and improperly influenced the FAA’s decision to work with Starlink warrants a thorough OIG fact finding,” the CLC alleged in its complaint. “The public has a right to know that their tax dollars are being spent in the public’s best interest and not to benefit a government employee’s financial interests.”
Forbes Valuation
Forbes estimates Musk’s net worth at $327 billion as of Thursday afternoon, making him the richest person in the world. Musk owns an estimated 42% stake in SpaceX, Starlink’s parent company, with a share sale in December 2024 suggesting the company is worth approximately $350 billion.
What Happens If Musk Violates Conflict Of Interest Laws?
It’s still unclear if the inspector general will investigate Musk’s dealings with the FAA and Starlink, and whether it could result in a ruling that Musk’s actions were actually unlawful. A ruling by the inspector general would not carry any legal weight, and Musk would have to be formally indicted on criminal charges or have a civil lawsuit brought against him by the Justice Department in order to face any penalties. That’s unlikely to happen as long as Trump is in office, given Musk’s close allyship with the president.
What Has Elon Musk Said About His Conflicts Of Interest?
Musk has responded to concerns about possible conflicts of interest between his government work and his companies by claiming there’s “transparency” around DOGE’s actions and conflicts should be pointed out by others, telling reporters, “If you see anything, you say, ‘Wait a second. Hey, that seems like maybe there’s a conflict there.’” “I don’t feel like people are going to be shy about saying that,” Musk said during a press conference at the Oval Office in February. Musk has also defended his actions by saying he’s not the specific person who would be handling the contracts and it would be up to other employees at his companies, telling reporters, “I’d like to say, if you see any contract where it was awarded to SpaceX and it wasn’t by far the best value of money for the taxpayer, let me know, because every one of them was.” CLC pushed back on that argument in its filing, saying Musk putting the focus on other SpaceX employees “misunderstands” the laws’ prohibition on government officials participating in conflicts of interest. “If Musk has a financial interest in a company, it does not matter whether he participates from the private sector side,” the organization argued, saying that the determination over whether someone violated conflict of interest rules is instead based on how much they participated within their government role. Musk issuing any directives saying Starlink should work with the FAA is enough to qualify as participation under the law, CLC alleges.
What Is A Special Government Employee?
A special government employee works for the federal government on only a limited basis. Federal law states they can be either paid or unpaid, but cannot work for more than 130 days during any 365-day period.
Key Background
Musk has become one of the most prominent members of the Trump administration, even as he remains somewhat outside of the formal government as a special employee. Trump has referred to Musk as leading DOGE, which has implemented broad cuts to federal spending and the federal workforce in numerous agencies, while Musk has become a White House mainstay, appearing alongside foreign leaders, in the Oval Office and at Cabinet meetings. As a special government employee, Musk was not required to divest from his private companies like he would in a role that required Senate confirmation, and his work with the Trump administration has long raised concerns over the possibility it could benefit his private companies. Prior to Trump’s inauguration, The New York Times reported Musk’s companies had received more than $15 billion in federal contracts over the past decade, with essentially all of those contracts—some $15.4 billion—being awarded to SpaceX. The billionaire’s companies had also been targeted through at least 20 recent investigations or reviews by government agencies, The Times reported, sparking fears the Trump administration would end those probes for political reasons. The Trump administration has already dismissed some legal challenges against Musk’s companies, and watchdog group Public Citizen reported the Trump administration has halted 89 enforcement actions or investigations against corporations more broadly.
