Rep. Rosa DeLauro (D-Conn.), the top Democrat on the House Appropriations Committee, has accused billionaire entrepreneur Elon Musk of derailing a bipartisan spending bill to protect his business interests in China.
In a letter to congressional leaders on Friday, DeLauro claimed Musk influenced Republican leaders to abandon a deal that could have averted a government shutdown, prioritizing his financial ties with the Chinese Communist Party over the welfare of American workers and industries.
The spending bill in question, released earlier in the week, spanned 1,500 pages and included numerous provisions, one of which sought to limit and screen U.S. investments in China. DeLauro highlighted Tesla’s deep ties to China, including its major manufacturing plant in Shanghai and its collaboration with Chinese companies on advanced technologies such as self-driving cars and long-lasting batteries.
"It is extremely alarming that House Republican leadership, at the urging of an unelected billionaire, scrapped a bipartisan, bicameral negotiated funding deal that included this critical provision to protect American jobs and critical capabilities,” DeLauro wrote. She further criticized Musk’s personal connections with Chinese Communist Party leadership, questioning whether his opposition to the funding agreement stemmed from financial motivations rather than policy concerns.
As Tesla’s CEO and largest shareholder, Musk has a vested interest in maintaining smooth operations in China, one of Tesla's largest markets and a hub for its production. DeLauro's comments underscored the national security concerns associated with technologies being developed and manufactured in China, particularly in sectors like electric vehicles and renewable energy.
Musk, who also owns the social media platform X (formerly Twitter), took to the platform to criticize the spending bill for its length, cost, and provisions he deemed unnecessary, including a pay raise for lawmakers. He referred to the agreement as emblematic of America’s financial mismanagement, claiming, “America is headed for disaster, with no money for anything, unless the government overspending is addressed.”
However, Musk notably did not address the provisions related to U.S.-China investments in his public critiques of the bill. His opposition, according to DeLauro, ultimately led Republican leaders to abandon the funding package, sparking concerns about the influence of a private billionaire on critical legislative decisions.
Adding fuel to the controversy, Musk serves as co-leader of the "Department of Government Efficiency" (DOGE), an advisory panel focused on reducing federal spending.
His alignment with House Republicans in rejecting the funding deal has raised questions about his broader political and economic influence, particularly given his history of supporting former President Trump and contributing millions to a pro-Trump super PAC.
The abandoned bill represents yet another flashpoint in the ongoing tensions between U.S. policymakers and private entities with extensive foreign ties. Critics argue that decisions influenced by figures like Musk risk compromising national security and undermining bipartisan efforts to protect American interests.