ProPublica is a nonprofit newsroom that investigates abuses of power. Sign up to receive our biggest stories as soon as they’re published.
What Happened: Three Democratic senators asked the Justice Department and other federal authorities to investigate whether members of the Department of Government Efficiency helping to downsize federal agencies violated conflict of interest laws by holding stocks in companies that their agencies regulate.
The letter sent Wednesday by Sens. Elizabeth Warren, Ron Wyden and Jack Reed cited ProPublica reporting on how one such aide assigned to the Consumer Financial Protection Bureau helped oversee the mass layoffs of the agency’s staff while holding as much as $715,000 in stocks that bureau employees are prohibited from owning.
What They Said: The DOGE aides’ cases “underscore what appears to be a pervasive problem with Elon Musk and DOGE employees trampling ethics rules and laws to benefit their own pockets at the expense of the American public,” the lawmakers said in the letter.
Warren and Reed sit on the Senate Committee on Banking, Housing and Urban Affairs. Wyden is the ranking member of the chamber’s Committee on Finance.
The letter asked Attorney General Pam Bondi, the Office of Government Ethics and three inspectors general with jurisdiction over the CFPB, Treasury and IRS to investigate the DOGE aides’ finances, including whether they’d appropriately divested from any conflicted holdings, and their specific work at the agencies. “The American people deserve answers regarding whether their own interests may have been undermined by Trump Administration officials that acted in violation of federal ethics laws,” the letter said.
Background: In recent weeks, ProPublica reported that at least two DOGE aides assigned to the CFPB helped coordinate mass layoffs at the agency while maintaining financial arrangements that experts have said either are or appear to be conflicts of interests. In the case of Gavin Kliger, ProPublica reported that ethics attorneys at the bureau warned the 25-year-old software engineer that he could not hold onto his stocks and also participate in major agency actions. Days later, he nevertheless helped oversee the layoffs of nearly 90% of the CFPB’s staff — an action that one expert called a “pretty clear-cut violation” of the federal criminal conflict-of-interest statute.
Response: The DOJ declined comment. Neither the Treasury Department, the IRS, DOGE nor the CFPB responded to requests for comment. A spokesperson for the OGE said the agency doesn’t comment on “situations in specific agencies.” Kliger didn’t respond to emails seeking comment. The White House has previously said that “these allegations are another attempt to diminish DOGE’s critical mission.” It added that Kliger “did not even manage” the layoffs, “making this entire narrative an outright lie.”
Why It Matters: The Trump administration has repeatedly tested the boundaries of mixing personal and public business, from the president’s own foray into the cryptocurrency industry to Elon Musk’s dual roles as both DOGE’s founder and a major federal contractor. (Musk announced Wednesday that he’s leaving the administration.)
The lawmakers’ letter adds to a growing chorus of good-government groups that have called for an outside investigation into Kliger’s actions at the CFPB. Federal prosecutors can bring charges against government workers who violate the criminal conflict of interest statute, an offense that’s punishable with a fine of up to $250,000 and up to five years in prison. But one expert previously told ProPublica that’s unlikely to happen under Trump, as the administration “greatly deprioritized public integrity, ethics and public corruption as issues for them.”
- propublica.org
- propublica.org
- propublica.org
- propublica.org
