Elon Musk’s space launch support jobs spared in budget review raises questions about conflict of interest, with critics arguing that the decision shows a willingness to allow federal workers to remain employed if their work benefits him.
Conflicts of Interest Surround Elon Musk‘s Space Launch Support
The US Department of Transportation has spared jobs for employees providing support services for SpaceX and Starlink launches, a move that raises new questions about the conflict of interest surrounding ‘him’.
Elon Musk is a South African-born entrepreneur, inventor, and business magnate.
He is best known for his ventures in space exploration and electric cars.
Musk co-founded PayPal, which was later sold to eBay, and went on to found SpaceX, aiming to reduce space transportation costs.
He also founded Tesla, Inc., which has become one of the leading electric vehicle manufacturers.
Additionally, Musk co-founded Neuralink and The Boring Company.
As of 2022, his net worth is estimated at over $200 billion, making him one of the richest people in the world.
The Decision to Spare Jobs
In the fiscal year 2025 transportation department budget review by the Guardian, funding for positions in pipeline management, transportation management, air traffic control, and cybersecurity is detailed. These critical roles support commercial space operations, including SpaceX and Starlink. However, the administration has targeted hundreds of thousands of federal employees, while sparing these specific positions.
SpaceX is a leading American aerospace manufacturer and space transport services company founded by Elon Musk in 2002.
The company's primary goal is to reduce space transportation costs and enable the colonization of Mars.
SpaceX has achieved numerous milestones, including being the first privately funded company to launch a spacecraft into orbit and dock with the International Space Station.
Its reusable rockets have significantly reduced launch costs, making space travel more accessible.
A Conflict of Interest?
Critics argue that the decision shows ‘It’s really weird those people were spared,’ said a former congressional staffer and current space industry employee who requested anonymity. ‘If I had to read between the lines, I would say this is on purpose because Musk knows these positions support the space industry.’
A Pattern of Behavior
This decision follows a pattern of behavior by Musk, who has allegedly steered lucrative contracts to his companies, hobbled agencies or departments that he could potentially take over and profit from, and attempted to kill departments or agencies that regulate his businesses. The latest iteration of this conflict of interest is ‘completely unsurprising,’ said Lisa Gilbert co-president of Public Citizen.
Supporting Roles
The transportation department has a workforce of about 57,000, with about 800 probationary employees reportedly fired in March. On April 1, the administration sent buyout letters urging more to quit in exchange for pay and benefits through September 30. The budget items detailed do not just support Musk or other private space companies; NASA and the military are also served by them.
Air Traffic Control and Cybersecurity
The former congressional staffer noted that many previous FAA budget increase requests were made because of pressure to keep up with the higher number of SpaceX launches – about 80% of agency overtime has been attributed to supporting SpaceX. The budget items detailed do not just support Musk or other private space companies; NASA and the military are also served by them.
A Growing Oversight Responsibility
The US Pipeline and Hazardous Material Safety Administration manages the movement of fuel and other supplies for launching, with a $400m funding allocation. This supports the administration’s ‘growing oversight responsibilities to ensure the safe transport of hazardous materials.’ The department will continue to set safety standards and perform safety inspections for space equipment and products via truck and air.
A Rapidly Growing Outer Space Economy
An $81m line item within the PHMSA budget also notes funding for adding staff to support the growing space industry. These new staff would ‘manage a growing special permits and approvals workload including the transportation of high value hazardous materials containing products bound for outer space, and a rapidly growing outer space economy.’
Strengthening Conflict of Interest Rules
Conflict of interest rules are regulations designed to prevent individuals from making decisions that benefit themselves or others with whom they have a personal or financial connection.
These rules apply to various professions, including business, government, and academia.
The goal is to ensure fairness and impartiality in decision-making processes.
In the United States, the Securities and Exchange Commission (SEC) enforces conflict of interest rules for publicly traded companies.
Breaches can result in fines and reputational damage.
Public Citizen is supporting legislation introduced by Senator Elizabeth Warren that would strengthen rules around conflicts of interest for people like Musk who are classified by an administration as a ‘special government employee.’ Gilbert said, ‘It’s a challenging moment and not what anyone wants to see – this individual amassing power without the checks put upon people who serve in government.’
Conclusion
The decision to spare jobs for employees providing support services for SpaceX and Starlink launches raises new questions about the conflict of interest surrounding Elon Musk. Critics argue that this move shows Musk‘s willingness to allow federal workers to remain employed if their work benefits him, while supporters note that these roles are critical for commercial space operations. The situation highlights the need for stronger rules around conflicts of interest in government.
