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"Congress must say enough is enough and immediately open an investigation into just how deep the rot at Burgum’s Interior goes," said one critic.
Ethics experts this week raised red flags over a senior US Interior Department official's failure to disclose her family's financial interest in the nation's largest lithium mine, which opponents say was illegally approved by the Trump administration.
In 2018, Frank Falen, husband and former law partner of current Associate Deputy Interior Secretary Karen Budd-Falen—the third-highest ranking Department of Interior (DOI) official—sold the water rights from a family ranch in Humboldt County, Nevada to a subsidiary of Lithium Americas for $3.5 million.
The subsidiary, Lithium Nevada, wanted to build a highly controversial $2.2 billion open-pit lithium mine—Thacker Pass—that required both massive amounts of water and approval from the DOI. Falen's water rights sale also hinged upon DOI approving the mine.
At the time, Budd-Falen worked as the DOI's deputy solicitor for wildlife. In 2019, she sat down for a lunch meeting with Lithium Americas executives in the DOI cafeteria.
“They just happened to mention to me they were going to DC, and I was like, ‘Well, my wife is back there,’” Falen said of the Lithium Americas executives in a New York Times interview. “It was my fault because I just said, ‘Yeah, you should stop by and say hi to my wife.’"
The US Bureau of Land Management (BLM), part of DOI, approved the mine during the final days of Trump's first administration via an expedited process to circumvent lengthy environmental review. Indigenous and conservation groups, working together in the Protect Thacker Pass coalition, subsequently sued over what they argued was the mine's illegal approval.
A Lithium Americas spokesperson told the Times: "We haven’t worked directly with Karen Budd-Falen related to Lithium Americas, nor have we ever met with her in a formal capacity regarding our project.”
However, ethics experts question the financial ties between Falen and Thacker Pass and why Budd-Falen did not publicly disclose her husband's $3.5 million water deal.
“Did she have any oversight of the environmental review process regarding Thacker Pass?" Kyle Roerink, executive director of the Great Basin Water Network, a Nevada conservation group, said during an interview last week with High Country News. “If she didn’t recuse herself, it would fly in the face of the impartial decision-making that Americans expect from government officials.”
Doug Burgum’s third-in-command Karen Budd-Falen made millions after the Trump administration fast-tracked what’s now the nation’s biggest lithium mine. Illegal, conflict of interest, corruption, or whatever you want to call it, there’s a rot in our Interior Department. https://nyti.ms/3LfBVWM
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— Save Our Parks (@saveourparks.us) January 5, 2026 at 1:00 PM
Robert Weissman, co-president of the watchdog group Public Citizen, told the Times: "It’s not clear that Karen Budd-Falen knew she had a conflict, but it’s clear she should have known, and that the public should have known. It’s also clear that she should not have met with Lithium Nevada."
Green groups and Indigenous peoples—including the the Reno-Sparks Indian Colony, Burns Paiute Tribe, and Summit Lake Paiute Tribe—fiercely oppose the mine. Opponents argue the project lacks consent, had a rushed environmental review, and that the mine would threaten wildlife and water and desecrate sacred Indigenous sites.
Thacker Pass, whose name means "rotten moon" to all three tribes, is also the site of an 1865 massacre of dozens and perhaps scores of Northern Paiute men, women, and children by US Cavalry troops. The tribes want it listed on the National Register of Historic Places.
In September, the Trump administration and Lithium Americas reached a deal under which the government will take a 5% equity stake in both the company and the Thacker Pass mine in return for Department of Energy loan money as demand for lithium—a key component of electric vehicle batteries, cellphones, and laptops—is surging worldwide.
The apparent conflict of interest involving Budd-Falen continues a history of corruption at Trump's DOI in both the president's first and current terms. First-term Interior Secretary Ryan Zinke's tenure was plagued by ethics violations and abuse of office. Federal investigators found that Zinke lied to them about his involvement in private land deals while in office, had improper relationships with developers, and improperly used taxpayer funds to pay for chartered aircraft and helicopter flights.
Zinke resigned in 2019. His eventual successor, David Bernhardt, was called a "walking conflict of interest" and "as corrupt as it gets" due to his prior work as a fossil fuel lobbyist.
Budd-Falen could also benefit from the Trump administration's invasion of Venezuela. According to reporting from Public Domain's Jimmy Tobias and Chris D'Angelo, Budd-Falen or her husband hold tens of thousands of dollars worth of stock in fossil fuel companies including ExxonMobil and pipeline firm Enterprise Products Partners.
Responding to Budd-Falen's failure to disclose her family's interest in the Thacker Pass mine, Save Our Parks spokesperson Jayson O’Neill said Monday:
This raises substantial questions about the lack of transparency, clear conflicts of interest, and potential illegal self-dealing at the Interior Department under [Interior Secretary] Doug Burgum. It wasn’t enough for Burgum’s top lieutenant, Karen Budd-Falen, to hold tens of thousands of dollars in Big Oil stocks while advancing their interests at Interior. Now we find out that she worked behind the scenes with Lithium Americas’ representatives and lobbyists, which received fast-track approval, making her and her husband millions.
"This naked corruption and self-dealing is par for the course at Doug Burgum’s Interior Department, which is more focused on self-serving and special interests than the American people and our outdoor heritage," O'Neill added. "Congress must say enough is enough and immediately open an investigation into just how deep the rot at Burgum’s Interior goes.”
“Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests."
A week after the US Department of the Interior said it was immediately halting five offshore wind projects in the interest of "national security," a watchdog group told congressional committees Monday that the move is "not legally defensible" and raises "significant" questions about conflicts of interest concerning a top DOI official's investments in fossil gas.
Timothy Whitehouse, executive director of Public Employees for Environmental Responsibility (PEER), wrote to the top members of the Senate Energy and Natural Resources Committee and the House Committee on Natural Resources regarding the pause on projects off the coasts of Virginia, New York, Rhode Island, Connecticut, and Massachusetts—projects that account for billions of dollars in investment, employ thousands of people, and generate sustainable energy for roughly 2.5 million homes and businesses.
The announcement made by Interior Secretary Doug Burgum last week pertained to "five vague, perfunctory, cookie-cutter orders" halting the projects, wrote Whitehouse, but PEER is concerned that the orders were issued to evade the Congressional Review Act (CRA), under which the action to halt the projects likely constitutes a "major rule."
Whitehouse explained:
Under the CRA, a rule that meets any one of three criteria (an annual effect on the economy of $100,000,000 or more; a major increase in costs or prices for consumers, individual industries, federal, state, or local government agencies, or geographic regions; or in pertinent part significant adverse effects on competition, employment, investment, productivity, or innovation) is a major rule. Interior’s pause likely meets all three.
As a major rule under the CRA, the pause cannot take effect until at least 60 days after BOEM provides Congress the requisite notification and report under the CRA, which, according to GAO’s database, has not yet occurred. Congress must use its oversight authority to unveil the truth and, as appropriate, and to enforce the rule of law.
He said in a statement that “Burgum’s move is designed to bypass all congressional and public input."
The CRA states that a rule is "the whole or a part of an agency statement of general or particular applicability and future effect designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of an agency.”
Press statements by the DOI and by Burgum last week were "statements of general applicability and imminent future effect, designed to implement policy," wrote Whitehouse, who also said the interior secretary embarked on "a coordinated rollout with Fox News entities."
On December 22, Fox anchor Maria Bartiromo asked Burgum at 8:00 am Eastern, “What next action did you want to tell us about this morning?” Five minutes later, FoxNews.com published its first story on Burgum's orders, citing a press release that had not yet been made public and including a quote from the secretary about the "emerging national security risk" posed by the offshore wind projects.
"If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."
Burgum's announcement to Fox came at least one to two hours before Bureau of Ocean Energy Management (BOEM) acting Director Matthew Giacona provided the orders to the lessees running the five wind projects.
Further, wrote Whitehouse, "Burgum’s voluminous public comments in the hours and days since the pause further show the true purpose of Interior’s singular action."
"The national security pretext quickly gives way to broad and spurious talking points about the 'Green New Scam,' how 'wind doesn’t blow 24-7' (evincing Burgum’s seeming unfamiliarity with energy storage technologies), and unyielding promotion of liquified natural gas projects," wrote Whitehouse.
Aside from the alleged illegality of Burgum's order, PEER pointed to Giacona's potential conflicts of interest with BOEM operations and specifically with halting wind projects. Giacona is a "diligent filer" of financial disclosure forms required by the Ethics in Government Act, noted Whitehouse—but those forms point to potential benefits he may reap from shutting down offshore wind infrastructure.
Giacona reported his purchase of interests in the United States Natural Gas Fund (UNG) on September 16. The fund tracks daily price movements of "natural" gas delivered at the Henry Hub in Louisiana and is subject to regulation by the Commodity Futures Trading Commission.
"Accordingly, a government employee who has an interest in UNG also has a potential conflict of interest with the underlying holdings of UNG (currently primarily natural gas futures contracts at the Henry Hub)," wrote Whitehouse.
PEER does not know whether Giacona continues to hold a financial interest in UNG or whether the offshore wind pause will have a "direct and predictable effect on a financial interest in UNG," but Whitehouse noted that Burgum and DIO have entwined the pause with the promotion of liquefied natural gas.
"It is disconcerting that Mr. Giacona temporarily had even a de minimis financial interest in natural gas futures while also leading the agency that manages the development of natural gas resources on the outer continental shelf," wrote Whitehouse, adding that Giacona also sold interests in the United States Oil Fund on September 3, while overseeing BOEM.
Based on Giacona's investments, said Whitehouse, “Burgum’s actions on offshore wind appear to be motivated by the personal financial interests of those in the administration, not our collective national interests. This is another misguided step in transforming the federal government into a franchise of the fossil fuel industry.”
“On public lands across the United States, the Department of the Interior has tens of thousands of additional active leases related to oil, gas, wind, solar, and geothermal production and mining for energy-related minerals," he added. "If last week’s actions are allowed to stand, future presidents will have unchecked authority under the guise of national security to target federal leases related to entire disfavored energy industries for political purposes."
"Trump is killing jobs, raising energy costs, and harming the planet," said Sen. Tim Kaine. "Grinch!"
The Trump administration's efforts to thwart a transition from climate-wrecking fossil fuels to renewable energy continued on Monday with a halt on five wind farms along the US East Coast under the guise of national security concerns.
The US Department of the Interior announced that it is immediately pausing Coastal Virginia Offshore Wind off Virginia, Empire Wind 1 and Sunrise Wind off New York, Revolution Wind off Rhode Island and Connecticut, and Vineyard Wind 1 off Massachusetts, citing unclassified government reports that "the movement of massive turbine blades and the highly reflective towers create radar interference called 'clutter.'"
Bloomberg reported Monday that "President Donald Trump has long opposed offshore wind power and began imposing restrictions on it within hours of taking office this year. The policies have led to numerous court battles, and a federal judge this month ruled his ban on projects was illegal. Citing national security issues may be a more legally durable way to keep wind turbines out of US waters."
"Offshore wind farm projects raised national security concerns under previous administrations, too. The Defense Department under former President Joe Biden pushed successfully for changes to leases being sold along the West Coast to address some of the issues," Bloomberg noted. Elsewhere, such as in the United Kingdom, government and industry have responded to radar interference issues by investing in mitigation technologies.
Responding to the news on social media, American anthropologist and journalist Scott Carney said that "shutting down wind farms in the name of national security only proves that Trump is a national security risk. Lying that climate change doesn't exist is not an effective policy against environmental collapse."
Jonathan Cohn, political director of the grassroots group Progressive Mass, pointed out that "if these were oil drilling projects being canceled, Republicans would scream that canceling the project was theft from the company. If renewable energy is canceled, those same Republicans cheer."
Dean Baker, senior economist at the Center for Economic and Policy Research, warned that "any company would be crazy to invest a dime in Donald Trump's America... The jerk can confiscate property any time he wants for any reason he invents."
According to the New York Times: "Vineyard Wind 1 is currently under construction and partially operational, with about half of the project's 62 turbines sending power to the electric grid as of October. Once complete, the project could produce enough electricity to power 400,000 homes."
Congressman Greg Stanton (D-Ariz.) declared that "wind farms are an essential part of a diversified energy strategy. Trump's cancellation of approved, in-progress projects wastes public dollars and widens the gap between America and its competitors."
Rep. John Larson (D-Conn.), whose constituents would benefit from the Revolution Wind project, said that "the president has taken an axe to wind energy, solar projects, and our state's clean hydrogen sector, putting hundreds of people out of work and saddling households across the state with even higher electricity bills. The state of Connecticut, led by Attorney General William Tong, already took him on to halt his illegal stop work order before, and we're prepared to do it again."
Sen. Tim Kaine (D-Va.) said: "Trump is killing jobs, raising energy costs, and harming the planet. Grinch!"
Senate Majority Leader Chuck Schumer (D-NY) similarly responded: "Donald Trump is trying AGAIN to kill thousands of good-paying union jobs and raise your electricity bill. I have been fighting Trump's war against offshore wind—a war that threatens American jobs and American energy. I will keep fighting to make sure these projects, the thousands of jobs they create, and the energy they provide can continue."
Sierra Club legislative director Melinda Pierce said in a statement that "blocking construction on all offshore wind projects underway in the US is an attack on our economy and our public health. The Trump administration's vengeance towards renewable energy knows no end."
"Instead of progressing us forward as a nation, they are obsessed with attacking a growing industry that provides good clean energy jobs and affordable, clean electricity," she added. "Americans need cheaper and more reliable energy that does not come at the expense of our health and futures."
Interior Secretary Doug Burgum discussed the decision on Fox Business Monday, pointing to the radar interference concerns.
Noting the appearance, writer and filmmaker Lee West said: "So 'national security' means suspending wind farms Navy approved for years—while drilling rigs multiply off Florida. The [administration's] pretexts grow taller than turbine blades."