How Did Elon Musk Become So Powerful In The Trump Administration?

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What conflicts of interest does Elon Musk have in the Trump administration?

Terry Gross 0:00
This is Fresh Air. I'm Terry Gross. A new investigation into conflicts of interest posed by Elon Musk overseeing the drastic cost-cutting and dismantling of some federal agencies was published yesterday afternoon in the New York Times online. A few hours later, Musk and President Trump held a joint press conference during which they insisted Musk was operating with full transparency. Trump said he wouldn't allow Musk to look into areas that posed a conflict of interest. Musk controls six private companies, including SpaceX, Tesla, and X, formerly Twitter. He gets billions of dollars from the federal government. My guest Eric Lipton, along with Times reporter Kirsten Grind, spent the past year investigating Musk's business with the federal government.
Terry Gross 0:50
they learned that at least 11 federal agencies have more than 32 continuing investigations, pending complaints, or enforcement actions into Musk's companies. Yesterday, before the Trump-Musk press conference, I spoke to Lipton about what the investigation uncovered. Eric Lipton, welcome to Fresh Air. You're a reporter looking into these conflicts of interest. Is there anyone in an official capacity in the Trump administration or in Congress or in any other official capacity who is doing an investigation into possible conflicts of interest between Elon Musk and the departments and agencies that he is cutting jobs and costs?
Eric Lipton 1:34
That's the somewhat startling thing to me as a reporter at this moment is that there's really no one else beyond us, the team that's working on it from the New York Times and other journalists. Because just in the last few days, Trump fired the head of the Office of Government Ethics. He's removed the inspectors general across the government, at least 17 of them. The Congress is controlled by Republicans, so therefore the Democrats who might be more critical of him don't have subpoena power, and they don't really therefore have significant investigative powers. And the Department of Justice is controlled by someone who's completely loyal to Trump. So there really is not much of an investigative capacity or an investigative desire beyond reporters that are attempting to drill into this without subpoena power.
Terry Gross 2:19
And the Office of Government Ethics, which you mentioned, Trump just fired the head of it this week. That office had pending requests to investigate Musk for conflicts of interest. On what grounds?
Eric Lipton 2:30
That's right. I mean, really, there's never been anything quite like Elon Musk. This is a guy whose companies just last year in 2024 received $3.8 billion worth of federal government contracts from And in the last five years, $13 billion worth of contracts. He has investigations pending of his various corporate entities in the dozens. And it's just sort of an acronym soup of federal agencies that either have pending investigations, lawsuits. subpoenaing him, all kinds of things that are active and that are in play and therefore vulnerable to being shut down. Not only therefore does he have billions of dollars at stake financially, but he has dozens of investigations targeting him at the same time as he has this immense power reaching across really the whole breadth of the federal government. There really has never been a conflict so broad in probably in American history.
Terry Gross 3:24
So he is investigating spending and possible fraud in agencies and departments throughout the government. Is anybody investigating if there's any inefficiency or fraud in the about $3 billion he's getting from the government?
Eric Lipton 3:44
Well, I mean, again, President Trump just neutered all 17 of the inspectors general who really had the greatest capacity to investigate potential waste, fraud, and abuse in his contracts. And we know that multiple IGs had pending investigations, including the Department of Defense, which was examining whether or not he had violated the terms of having a top secret security clearance because he wasn't properly reporting engagements he had with foreign government figures previously. As far as we understand, there are still questions being asked relative to that inquiry.

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