The Justice Department has warned billionaire Elon Musk’s America PAC that it may be violating federal law by offering swing state voters $1 million if they sign a petition, CNN reports, as Musk has spent millions trying to help elect former President Donald Trump.
Key Facts
- DOJ’s public integrity division sent a letter to America PAC “in recent days” warning the PAC’s giveaway randomly selecting voters to receive $1 million may violate federal law, according to CNN, citing anonymous sources.
- The PAC—which federal filings show is being funded almost entirely by Musk—is giving away $1 million each day to voters in swing states who sign a petition “pledging [their] support for the First and Second Amendments,” after previously pledging $47 for every voter someone refers to sign the petition.
- Legal experts have raised widespread concerns about Musk’s giveaway potential violating federal law, which states the government will prosecute anyone who “pays or offers to pay or accepts payment either for registration to vote or for voting,” and the DOJ has confirmed that includes “lottery chances.”
- Since Musk’s giveaway is only open to registered voters in swing states, experts believe it would violate the law by providing a financial incentive for Americans to register to vote.
- Violations of the law are punishable by a fine of up to $10,000 and/or up to five years in prison.
- DOJ, America PAC and Musk have not yet responded to requests for comment.
What To Watch For
How America PAC will respond to the DOJ’s reported warning and if it will end the sweepstakes. The PAC has reframed some of its wording on the giveaway as experts have raised concerns with its legality, claiming in a social media post that winners of the giveaway are being given the $1 million as payment for being a “spokesperson” for the PAC, and posting videos of the $1 million winners. Legal experts cited by CNN noted that doesn’t make the operation legal, however, given the PAC still hasn’t opened the giveaway up to people who aren’t registered voters or live outside major swing states.
Related
Big Number
More than 1 million. That’s the number of voters who have signed America PAC’s petition entering them into the $1 million giveaway, the PAC claimed on X, formerly known as Twitter, on Wednesday.
Forbes Valuation
Forbes estimates Musk’s net worth at $243.5 billion as of Wednesday afternoon, making him the wealthiest person in the world. Musk has given at least $75 million to America PAC through Sept. 30, according to Federal Election Commission filings.
Key Background
Musk has become one of Trump’s biggest donors and most outspoken allies in the leadup to the presidential election, bankrolling America PAC while campaigning for Trump, appearing alongside the ex-president and singing his praises on social media. The Trump support marks somewhat of an about-face for Musk—who has previously claimed to donate to Democrats and criticized Trump—and comes as the Tesla and SpaceX CEO’s companies stand to heavily benefit from a Trump presidency. America PAC was formed over the summer and has reportedly become the primary organization handling the Trump campaign’s ground game, thanks to a recent FEC ruling that allowed political campaigns to coordinate more with super PACs, which are typically independent from the candidate. While Musk has long been aligned with the PAC and was described as a founder of the group, his financial stake in its operations only first became clear when FEC filings were released last week showing his $75 million donation, after Musk previously shot down early rumors he was giving $45 million per month. In addition to its potential legal woes, the PAC has also faced increasing scrutiny in recent weeks amid reports of issues with its tech infrastructure that have allowed workers to get away with claiming they’ve knocked on voters’ doors when they actually haven’t.
This article was originally published on forbes.com and all figures are in USD.
Look back on the week that was with hand-picked articles from Australia and around the world. Sign up to the Forbes Australia newsletter here or become a member here.
