Democratic lawmakers are demanding answers over Elon Musk’s role as head of the Department of Government Efficiency (Doge), raising concerns about potential conflicts of interest due to his vast financial stakes in companies that receive federal contracts and face regulatory scrutiny.
In a letter sent Monday to White House Chief of Staff Susie Wiles, Senator Adam Schiff questioned whether Musk had disclosed his financial interests or received exemptions from conflict-of-interest laws. Schiff warned that Musk, as a special government employee (SGE), is subject to strict federal ethics rules while still maintaining control over multiple private companies that benefit from government contracts. The White House has been asked to respond by 13 February.
Musk’s business entanglements are at the heart of the controversy. His satellite internet service Starlink, operated by SpaceX, had been under review by USAid for its role in supplying terminals to Ukraine, before Doge’s recent moves to dismantle the agency. Additionally, Tesla, valued at $1.25 trillion, is facing a National Highway Traffic Safety Administration (NHTSA) investigation into safety issues with its autopilot system. Neuralink, Musk’s brain-chip company, is also under investigation by the FDA and Department of Agriculture over its animal testing practices.
“Mr Musk’s companies have been the subject of at least 20 recent federal investigations, which heightens the risk that he may seek to use his new position to shield his companies from scrutiny,” Schiff wrote.
Further concerns emerged last week when a federal judge blocked Doge-affiliated employees from accessing a Treasury Department payment system that handles 90 percent of federal payments. Another ruling temporarily halted Doge’s effort to place thousands of USAid employees on leave, a move that could have affected the agency’s investigations.
House Judiciary Democrats escalated the issue on Friday, sending a separate letter to Attorney General Pam Bondi and the Office of Government Ethics Director David Huitema, urging a formal investigation into whether Musk has violated 18 U.S.C. § 208, which prohibits federal employees from engaging in government matters that affect their financial interests.
They also argued that Musk is subject to financial disclosure requirements under the Stop Trading on Congressional Knowledge (STOCK) Act, which would compel him to publicly report any financial interests that might pose a conflict.
According to USASpending.gov, Musk’s companies have received over $3.3 billion in federal contracts in the past year, including $1.7 billion from NASA, $1.3 billion from the Air Force, and $199.2 million from the Defense Information Systems Agency.
Despite these concerns, the White House has defended Musk’s role, with Press Secretary Karoline Leavitt stating that he would “excuse himself” from any conflicts. President Donald Trump has also dismissed concerns, saying, “If there’s a conflict, we won’t let him get near it.”
Democrats are not convinced, insisting that DOJ and the Office of Government Ethics take swift action to prevent any undue influence.
“The American people deserve assurances that no individual, regardless of stature, is permitted to influence policy for personal gain,” the lawmakers wrote. “Failure to enforce this statute risks eroding confidence in the impartiality of federal decision-making.”
