Donald Trump and Elon Musk are working together to significantly reduce federal spending by eliminating thousands of jobs and downsizing government agencies. However, Musk is facing increasing scrutiny over potential conflicts of interest and the lack of oversight, according to legal and ethic experts.
Musk, Trump’s largest campaign donor and the world’s wealthiest man, has been appointed to lead a newly-formed “department of government efficiency” (Doge). This department, created in an opaque and radical cost-cutting drive, allows Musk to maintain control over his companies, such as SpaceX and Tesla, which have billions of dollars in federal contracts. Critics argue that Doge’s operations at various agencies could financially benefit Musk.
Trump and Musk have downplayed concerns regarding conflicts of interest, with Musk simply stating that he would recuse himself if necessary. However, critics point out that Trump has been dismissing independent oversight, firing key ethic and corruption watchdogs.
Legal experts express alarm about Musk’s conflicts and lack of oversight. They highlight the importance of having an Office of Government Ethics to enforce compliance and restore public confidence in the integrity of Doge.
Critics also point to the potential financial gains for Musk’s businesses as he leads Doge. SpaceX and Tesla have secured at least $18 billion in federal contracts over the last decade, and Musk’s companies have been investigated or fined by multiple regulatory agencies. These facts raise further concerns about conflicts of interest between Musk’s businesses and Doge.
Musk, now a federal officer, is subject to criminal conflict of interest laws. He cannot own stock in Tesla, which offers car loans, and simultaneously participate in dismantling the Consumer Financial Protection Bureau (CFPB). Similarly, Musk cannot have an equity stake in his AI company, xAI, which is likely to benefit financially from the government’s shift towards AI.
Democratic state attorneys general have challenged Doge’s operations, including its efforts to obtain sensitive private data. A lawsuit filed by 19 Democratic attorneys general to restrict Doge’s access to US treasury systems was successful in February when a New York judge upheld a temporary restraining order.
In addition to concerns about conflicts of interest and transparency, Musk’s cost-cutting measures have received public dismay. A Washington Post-Ipsos poll showed that Americans disapprove of Musk shutting down federal government programs.
Experts believe that Musk’s influence over government agencies, combined with his significant business ties, presents wide-ranging and dangerous conflicts of interest. They stress the need for strong oversight to address these concerns.
Criminal law prohibits special government employees, such as Musk, from making government decisions where they have financial conflicts of interest. Musk’s decisions may involve agencies that regulate or contract with his companies, potentially violating criminal law.
In addition to his official role, Musk’s role as a “special government employee” raises concerns about the use of his AI company to support Doge’s review of sensitive government data. Musk may personally benefit from using government information unavailable to competitors to train his AI system.
Senators and representatives have called on Musk to publicly disclose a confidential disclosure form he submitted as a
Source: https://www.theguardian.com/us-news/2025/feb/27/elon-musk-conflicts-of-interest
