A Democratic senator has introduced a bill that would prohibit awarding government contracts and grants to companies owned by special government employees, taking aim at Elon Musk, the SpaceX and Tesla CEO.
The bill, authored by Jeanne Shaheen, the longtime Democratic New Hampshire senator, is an attempt to prevent conflicts of interest and was crafted in response to Musk’s role in the White House, where Donald Trump has designated him a special government employee, according to a Senate aide. Special government employees, which also include many members of Musk’s so-called “department of government efficiency” (Doge), serve a limit of 130 days and are exempt from some financial disclosure rules.
“Those who step up to serve our country should do so because they want to contribute to the betterment of our nation – not because they stand to benefit from their public service at the expense of taxpayers,” Shaheen told the Guardian.
Shaheen’s bill would specifically block an executive agency from awarding a “contract, grant, or cooperative agreement” to any company in which the beneficial owner was a special government employee with more than 5% ownership stake. Senate Republicans, who hold the chamber’s majority, have shown little interest in backing any attempts to rein in Musk’s power or compel more transparency into his actions, however, while Trump has repeatedly defended Musk against criticism.
Democrats and ethics watchdog groups have frequently objected to Musk’s numerous conflicts as he serves as the de facto head of Doge and a senior adviser to the president. Musk’s companies, most notably SpaceX and the satellite communications service Starlink, have extensive and expanding ties with government agencies as well as contracts worth billions of dollars.
As Musk and his team have rapidly moved to dismantle entire federal agencies and cut government services in recent months, former government employees have also warned that the world’s richest person is laying groundwork for his own private companies to further entrench themselves. Musk’s Starlink is reportedly up for potential contracts with several federal agencies, and was already donated for use across the White House complex – a move that this week prompted Democrats on the House oversight committee to express “deep concerns” in a letter to the administration.
“Donations such as this raise considerable red flags as to whether Mr. Musk is using his position in the federal government to benefit his companies,” the letter stated.
Musk’s conflicts also extend beyond his contracts with the government. The billionaire’s companies, such as Tesla and Neuralink, are involved in a wide range of regulatory battles and investigations with agencies that Doge and the Trump administration have targeted for cuts.
In addition to Democratic lawmakers attempting to push back against Musk, several labor groups and government watchdog organisations have also filed legal challenges alleging that Doge is violating federal ethics, privacy and transparency laws. Trump has meanwhile downplayed issues over Musk’s conflicts of interest, with the White House stating that the tech billionaire will essentially police himself while working with Doge.
