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Sen. Blumenthal Looking Into Possible Musk Conflicts of Interest in DOGE/SpaceX Work

U.S. Senator Richard Blumenthal, a Democratic Senator representing Connecticut. Official photo.
Sen. Richard Blumenthal, D-Conn., the ranking member of the investigations panel of the Senate Committee on Homeland Security and Governmental Affairs and a senior Democrat on the Senate Armed Services Committee, said last week that he has begun a preliminary look into whether the Department of Governmental Efficiency (DOGE) has gained access to trade secrets of competitors to SpaceX whose founder, tech billionaire Elon Musk is heading DOGE.
The latter, a temporary organization under the U.S. DOGE Service — a Trump administration renaming of the Obama-era U.S. Digital Service — is to expire on July 4 next year after providing recommendations on federal spending to the White House.
“SpaceX, including Starlink, has received approximately $19.8 billion in federal contracts from the federal government, with at least $3.8 billion in fiscal year 2024 alone,” Blumenthal wrote in a Feb. 5 letter to David Harris, the acting general counsel of SpaceX in Brownsville, Texas. “Mr. Musk’s dual roles — running a for-profit corporation while serving in public office — not only create glaring conflicts of interest that pose grave risks for America’s most sacred institutions, but may also violate federal law.”
“Pursuant to Senate Resolution 59 (118th Cong.) and Rule 1 of the Permanent Subcommittee on Investigations (“PSI” or “the Subcommittee”), PSI is conducting a preliminary inquiry into DOGE and the ramifications of its conduct,” Blumenthal wrote.
Passed by the Senate via unanimous consent on Feb. 13, 2023, Senate Resolution 59 established Senate committee funding levels and gave PSI investigation powers, including subpoenas, through this February.
“Mr. Musk has used DOGE to interfere with or encourage the elimination of federal agencies or programs that his companies, or his competitors, have had direct interest in,” according to Blumenthal’s letter. “This access may violate federal law and may also allow Mr. Musk to gain a competitive advantage in his numerous businesses, including SpaceX.”
Musk spearheaded the proposed elimination of the U.S. Agency for International Development and said last week that “as we dug into USAID, it became apparent that what we have here is not an apple with a worm in it, but that we have actually just a ball of worms.”
Yet, his rhetoric conceals that the USAID inspector general had been investigating since last May the possible misuse of 5,000 Starlink terminals provided by USAID to Ukraine in its war with Russia. Musk has given contradictory signals about his support for Ukraine or Russia.
“Musk may also have the power to withhold payments or hinder government programs without having to provide any explanation or notice,” according to Blumenthal’s Feb. 5 letter to Harris. “DOGE’s operations will also provide its employees with substantial information and influence over government contracts and plans that are commercially material to Mr. Musk’s businesses.”
Musk requested that Harris provide by Friday details on SpaceX and DOGE links to help determine “the extent to which the information and influence Mr. Musk has obtained is being used to the commercial benefit of SpaceX, and whether SpaceX personnel are working on behalf of DOGE.”
On Sunday, Blumenthal issued a further warning about DOGE’s coming examination of Pentagon spending, including contracts to defense companies.
“Musk’s wrecking crew is unleashed to slash and trash our nation’s military and access our most classified security secrets–all without proper clearance or protection against foreign adversaries or breaches,” he said. Defense Secretary Pete Hegseth has yet to indicate how or whether Musk and his young DOGE acolytes will gain dispensation to view classified program information.
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