Elon Musk is facing criticism from congressional Democrats for the billions his companies receive from the federal government, while questions about potential conflicts of interest remain unanswered.
During a House hearing on government efficiency, Rep. Greg Casar (D-TX) slammed House Republicans for overlooking Musk's $8 million daily earnings from federal contracts through SpaceX. Casar argued that while retirees survive on just $65 a day from Social Security, Musk's growing wealth from government deals is not being scrutinized. He also condemned Musk and President Donald Trump for firing inspectors general who traditionally oversee internal investigations into executive branch operations.
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Casar highlighted the significant influence Musk holds within the government, especially as the head of the White House's Department of Government Efficiency. He questioned why there is no investigation into Musk's federal contracts, especially given his active role in shaping government operations. According to Casar, this represents a major conflict of interest.
Musk's companies have secured numerous contracts with the federal government, amounting to billions in funding. Gwynne Shotwell, president and COO of SpaceX, confirmed in November that the company alone holds $22 billion worth of government contracts.
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At a press conference in the Oval Office, Musk defended SpaceX's government contracts, emphasizing their value for taxpayers and clarifying that any contracts awarded to his companies were based on merit and cost-efficiency. “First of all, I’m not the one filing the contract. It’s people at SpaceX or something will be putting for the contract,” Musk said. “And 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 for money for the taxpayer, let me know, because every one of them was.”
Additionally, after information was revealed on Thursday, the State Department revised its 2025 procurement forecast, removing a $400 million contract for "Armored Tesla (Production Units)" and replacing it with "Armored Electric Vehicles," eliminating direct mention of Tesla TSLA. Musk denied knowledge of Tesla receiving the contract, saying on X that no one had informed him of such a deal.
Casar and other Democrats have also criticized Musk's involvement in cutting federal programs while profiting from government contracts. Recently, $80 million in FEMA funds allocated to New York for migrant assistance was revoked under Musk's oversight. Additionally, many government employees have been fired for participating in diversity training programs, even those conducted during Trump's previous term, raising further concerns about Musk's unchecked power.
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