Elon Musk Faces Conflict of Interest Complaint Over FAA Deal

WASHINGTON, D.C. — Billionaire Elon Musk confronted a formal complaint on Thursday claiming his government work breaches conflict-of-interest laws. This complaint, filed by the Campaign Legal Center (CLC), centers on Musk’s involvement in dealings between the Federal Aviation Administration (FAA) and his private company, Starlink.

The Campaign Legal Center seeks an investigation from the inspector general of the Department of Transportation. They argue that Musk, who serves as a special government employee, may have unlawfully participated in matters directly affecting his financial interests.

Federal law prohibits government employees—including special government employees like Musk—from participating in any particular matter where that employee has a financial interest. Violations can lead to penalties of up to five years in prison and fines reaching $50,000 per offense.

The CLC’s concerns are rooted in reports suggesting that the FAA is considering a shift from its existing contract with Verizon, valued at $2.4 billion, to collaborate with Starlink on enhancements to its air traffic control systems. Transportation Secretary Sean Duffy has indicated that Starlink would play a significant role in these upgrades.

The complaint cites an article from The Washington Post that stated the FAA was “close to canceling” its contract with Verizon in favor of Starlink, leading to suspicions of Musk’s financial motives. The CLC characterized Musk’s involvement as “personal and substantial,” raising concerns that the contracting of his company would directly benefit his financial interests.

“The evidence suggesting that Musk has blatantly and improperly influenced the FAA’s decision to work with Starlink warrants a thorough OIG fact-finding,” the CLC alleged in its complaint. “The public has a right to know that their tax dollars are being spent in the public’s best interest and not to benefit a government employee’s financial interests.”

As of Thursday, Forbes estimated Musk’s net worth at $327 billion, making him the richest person globally. Musk reportedly holds about 42% of SpaceX, which is Starlink’s parent company, with valuations suggesting SpaceX is worth approximately $350 billion.

It remains uncertain whether the inspector general will pursue an investigation into Musk’s dealings with the FAA and Starlink. If an investigation leads to findings of misconduct, it would primarily serve as a recommendation rather than a legal ruling, meaning any consequences would require separate criminal charges or a civil lawsuit, which seems improbable given Musk’s close ties to the Trump administration.

Musk has previously downplayed concerns about potential conflicts of interest, asserting that transparency around his actions is maintained. “If you see anything, you say, ‘Wait a second. Hey, that seems like maybe there’s a conflict there,’” Musk stated at a press conference.

Moreover, he emphasized his non-involvement in contract management, suggesting any conflicts should be identified and flagged by others. “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 of money for the taxpayer, let me know,” he added.

In its filing, the CLC critiqued Musk’s claim about not directly handling contracts, stating it misinterprets the legal definitions of participation in conflict-of-interest matters. “If Musk has a financial interest in a company, it does not matter whether he participates from the private sector side,” the CLC argued.

As a special government employee, Musk is not mandated to divest from his private companies, and his role under the Trump administration has prompted scrutiny regarding potential benefits to his interests. Past reporting revealed that Musk’s companies had received over $15 billion in federal contracts over the past decade, predominantly awarded to SpaceX.

In light of these developments, the CLC’s complaint amplifies discussions surrounding government ethics and corporate influence, as Musk continues to play a prominent role in the current administration.