As the public face of President Donald Trump’s Department of Government Efficiency, billionaire tech CEO Elon Musk holds a diverse portfolio that spans various government sectors and intersects with his extensive business interests. Unlike another high-profile “special government employee” in Trump’s White House, AI and crypto czar David Sacks, there is no evidence that Musk has secured a conflict of interest waiver. Such a waiver would detail the measures he has taken to prevent conflicts between his business ventures and government duties, provide assurance from the White House counsel on the acceptance of Musk’s arrangement, and specify areas where Musk can contribute despite his business ties.
White House press secretary Karoline Leavitt informed NBC News that Musk has committed to avoiding potential conflicts of interest and is complying with all relevant laws, just like other Trump-appointed “special government employees.” Concerning conflicts between Elon Musk and DOGE, President Trump has stated his refusal to allow conflicts, and Musk has pledged to recuse himself if any potential conflicts arise. Leavitt emphasized DOGE’s transparency in their operations and regular updates on their activities.
It is common for Administrations to appoint individuals as Special Government Employees to concentrate on specific issues based on their external expertise for a limited duration. Leavitt stated that all SGEs are completing the required paperwork, undergoing ethics rules briefings, including conflict of interest guidelines, and adhering to federal laws.
Musk’s role as a “special government employee” was publicly disclosed by the White House on Feb. 3, designating him as a senior adviser to the president rather than a DOGE employee. The administration asserts that Musk is leading the charge at DOGE. Musk’s vast business empire, encompassing SpaceX and Tesla, frequently interacts with government regulators and potential contracts, prompting concerns from Democrats and others about preventing conflicts of interest in official administration decisions.
In a recent interview with Fox Business, Musk mentioned that DOGE has a presence in nearly every federal department. Notably, Musk’s satellite internet service, Starlink, is under consideration for adoption in various federal government initiatives. Tesla and SpaceX, both belonging to Musk, have received substantial government subsidies and contracts, while navigating regulatory disputes with the federal government.
Musk’s Tesla heavily relies on China for production and market access, a matter that arose after Musk participated in a Pentagon briefing discussing China. Following the briefing, Trump dismissed rumors that Musk’s meeting would involve discussions on China.
In relation to potential military strategies for a hypothetical conflict with China, President Trump praised Elon Musk as a “great patriot” and highlighted Musk’s beneficial contributions to cost-cutting efforts in the United States. Trump expressed hesitation in sharing sensitive information with individuals like Musk who have business ties to China due to concerns about potential vulnerabilities.
As a “special government employee,” Musk is subject to legal restrictions and guidelines designed to prevent conflicts of interest and ensure the integrity of governmental advice. Federal regulations prohibit executive branch employees from participating in matters where they or their close associates have a financial interest that could be directly impacted. Musk may be eligible for waivers in certain circumstances, but there is no public indication that he has sought or been granted such waivers.
In contrast, another special government employee, Sacks, has received a conflict of interest waiver that has been publicly documented. This waiver allows Sacks to engage in specific regulatory and policy matters related to the digital asset industry. The detailed memo from White House Counsel David Warrington outlines the justification for granting the waiver to Sacks, emphasizing the unique expertise required for his role as a Special Advisor for AI and Crypto.
Sacks received a “limited” conflict of interest waiver. Warrington explained that one of the main reasons behind the country’s conflict of interest laws was the recognition that the government needed input from private sector leaders in areas such as technology, science, and innovation to shape national public policy. Neither Sacks nor Musk are required to publicly disclose their finances, although they must do so if they start earning a significant government salary. A White House official informed NBC News that the White House Counsel’s Office screens all “special government employees” and outlines the boundaries of their involvement. The official mentioned that the external business interests of these employees are intentional, allowing successful individuals to offer their expertise to the federal government. However, the absence of a public waiver, coupled with Musk’s extensive business ventures and influence in various government sectors, has raised concerns among some ethics officials critical of conflict of interest issues in previous administrations. Walter Shaub, former director of the United States Office of Government Ethics, stated that a conflict of interest waiver for Musk could not be justified. He pointed out that Musk, the wealthiest individual globally and a government contractor, should not have a waiver due to the public’s interest in ensuring that their tax dollars and government resources solely benefit them and not a billionaire contractor involved in numerous government activities.
