Musk Faces Congressional Scrutiny After Midterm Losses

Elon Musk received at least $6.3 billion in government contracts during the four months he led the Department of Government Efficiency. With Democrats now holding majorities in both the House and the Senate, the billionaire is expected to face formal investigations into how his companies secured those awards. Lawmakers say they intend to determine whether Musk used his administrative influence to benefit his own business interests.

The scrutiny extends beyond the DOGE period. According to the Democracy Defenders Fund, Musk has gained at least another $10 billion in government contracts since leaving the department. Rep. James Walkinshaw of Virginia argued on social media that Musk must answer for his actions under oath. He described Musk as using a chainsaw to fire public servants while lying to the public about the resulting savings.

Musk's foreign policy decisions are also under examination. Democratic Sen. Chris Coons of Delaware cited Musk's links to Russian President Vladimir Putin as a reason to subpoena the tech executive. Rep. Mike Levin of California focused on the timing of Musk's restriction of Starlink satellite internet service to Ukraine. Levin noted that this move occurred days after President Trump eased sanctions on Russia and began purchasing Russian diesel fuel in October.

Richard Painter, a former chief White House ethics lawyer, noted that Musk served as a part-time special government employee while leading DOGE. Under federal law, such personnel are prohibited from participating in official matters that affect their personal financial interests. Painter stated that if Musk touched any decision he knew would impact SpaceX, a major contractor for NASA and the Department of Defense, he would have committed a crime.

Texas served as the primary battleground for Musk's political spending efforts. He directed at least $225 million to the state, supporting Republican candidates Ken Paxton for U.S. Senate and Gov. Greg Abbott for reelection. Both candidates lost, marking the first time Democrats captured every statewide office in Texas. James Talarico, who defeated Paxton, told a rally in Lubbock that Musk was trying to buy the state. Talarico added in his victory speech that power belongs to the people, not the top.

Musk's companies have expanded their physical presence in Texas. Tesla maintains its corporate headquarters and a major manufacturing facility in Austin, while SpaceX is based in southern Texas. Neuralink and The Boring Company are also headquartered in the state. SpaceX is reportedly exploring sites for large data centers, and a $16.8 billion semiconductor fabrication project was announced in August. Despite rising markets following the midterm results, Tesla shares dropped 3% and SpaceX shares fell nearly 4% on Wednesday. Musk posted on social media that his election-interfering space lasers did not work this time.

Musk did not respond to a request for comment regarding the incoming investigations. His companies remain central to the federal government's technological and aerospace operations, with Starlink and its military-grade counterpart, Starshield, supporting Ukraine's civilian infrastructure and drone operations.