Lawsuit Targets Secretive Musk-Led Pentagon Panel Over 'Enormous Potential Conflicts of Interest'

A coalition of government watchdog organizations sued the US Department of Defense on Monday over a recently announced initiative known as Project Meridian, a Pentagon advisory committee headed by SpaceX CEO Elon Musk and Anduril Industries cofounder Palmer Luckey—billionaires whose companies benefit extensively from federal contracts.

The lawsuit, filed in the US District Court for the District of Columbia, alleges that Project Meridian violates the Federal Advisory Committee Act (FACA), which "requires that any federal advisory committee that includes non-governmental members be created by a charter, have a defined structure and purpose, make its records and meetings open to the public, and be fairly balanced in its membership."

In his memorandum ordering the creation of Project Meridian, Pentagon Secretary Pete Hegseth set a deadline of January 28, 2027 for the panel to deliver recommendations to the US Defense Department on how to "map the trajectory of future warfare" and help the country "maintain global dominance."

Project Meridian has held at least two meetings at the Pentagon, which has not disclosed the specific contents of the gatherings or released a list of attendees. Former Republican House Speaker Newt Gingrich is helping Musk and Luckey spearhead the advisory panel, coordinated by the MITRE Corporation—whose board previously included the GOP's nominee for US Senate in Michigan, Mike Rogers.

"Despite its ongoing operations and imminent final report," the new lawsuit reads, "defendants have failed to comply with FACA’s procedural and substantive requirements for new federal advisory committees, including FACA transparency requirements that disallow Project Meridian’s closed-door operations."

"Compounding the problem, Project Meridian’s private-sector membership raises precisely the type of conflict-of-interest concerns that FACA was designed to address," the lawsuit continues. "Announced members include Elon Musk and Palmer Luckey, both leaders and stakeholders of major defense contractors with substantial financial interests in the outcome of Project Meridian’s recommendations. Other members likewise have direct financial stakes in Project Meridian’s findings or are dedicated to aggressive military action."

The lawsuit was filed by Citizens for Responsibility and Ethics in Washington (CREW), Public Citizen, and the Project on Government Oversight. The groups urged the federal court to "hold unlawful, vacate, and set aside Secretary Hegseth’s September 30 memorandum establishing Project Meridian," "enjoin defendants from allowing Project Meridian to continue its work until defendants bring it into compliance with FACA," and bar the Pentagon from "accepting or acting upon any recommendations by Project Meridian while it is acting outside the law."

Donald Sherman, CREW's president, said in a statement on Monday that the Pentagon is "legally barred from getting advice in secret, by defense contractors with enormous potential conflicts of interest."

"But that’s exactly what Project Meridian is doing—soliciting private counsel from contractors about military capacity including the president’s largest political benefactor,” said Sherman. "The Federal Advisory Committee Act sets clear requirements about transparency and avoiding conflicts of interest, and Project Meridian must either comply or stop operating.”

Musk's SpaceX has secured more than $8 billion in Pentagon contracts in 2026 alone.

Anduril Industries, Luckey's firm, is known for building autonomous drones. The company won a $2 billion US Navy contract last month, days after Hegseth announced Project Meridian.

“Project Meridian would outsource design of grand military strategy to two extremist Pentagon contractors, Elon Musk and Palmer Luckey,” Robert Weissman, co-president of Public Citizen, said Monday. “Very predictably, they will recommend more spending, much more spending, on more AI-enabled weaponry. That would simultaneously make the world more dangerous and starve funding for domestic and human needs."

"The law demands balance on advisory committees, precisely to prevent connected insiders like Musk and Luckey from writing policy at the expense of the public," Weissman added.