Trump's "circle of friends" collectively getting rich? On the eve of the SpaceX IPO, White House officials exposed for holding tens of millions of dollars in shares

As SpaceX approaches the largest IPO in history, multiple senior U.S. government officials have been revealed to hold shares in the company or its affiliates. This deeply intertwined web of interests is raising widespread concerns about potential conflicts of interest.

According to Bloomberg, based on the latest publicly released financial disclosure documents, at least ten officials from the Trump administration hold equity in SpaceX or its subsidiaries, including the AI and social media company xAI. These officials include envoys, the Federal Reserve Chair, ambassadors, and heads of several federal agencies.

SpaceX’s IPO could launch as early as next week, with a target valuation of no less than $1.8 trillion and a planned fundraising amount of up to $75 billion, potentially setting the record for the largest public offering in global capital markets. Government ethics lawyers point out that the unusual aspect of this IPO is not only its unprecedented scale, but also the complex entanglement of interests between SpaceX and the federal government—the company is a key government contractor, with $4 billion in federal contract value for fiscal year 2025, and last month it was awarded a new $6.5 billion order from the U.S. Space Force.

Reilly Steel, an associate professor at Columbia Law School, stated, "I can't recall any other IPO in recent years that involved so many senior government officials with financial interests."

Multiple Officials Hold Shares in SpaceX and xAI, Fed Chair Forced to Divest

According to federal financial disclosure documents, Paul McInerny, CIO of the Department of the Interior, holds SpaceX shares valued highest among all reporting officials, with a declared range of $5–25 million. McInerny previously worked as a SpaceX software engineer, participating in early missions for the Dragon spacecraft and Falcon 9, and partially reduced his holdings between 2024 and 2025, cashing out $1–5 million.

Envoy Steve Witkoff holds SpaceX shares indirectly via his interests in 3G Investors LLC, with a reported value of $1–5 million. The fund’s sole disclosed holding is SpaceX. Witkoff currently leads peace negotiations in Ukraine, Gaza, and Iran.

SBA Administrator Kelly Loeffler holds xAI shares through a Valor Equity Partners fund, valued at $1–5 million. The fund was founded by Musk’s longtime collaborator Antonio Gracias, who is also the largest SpaceX shareholder aside from Musk.

Other reporting officials include GSA Deputy Administrator Michael Lynch, who holds $500,000–$1 million in SpaceX shares; Ambassador to Luxembourg Stacey Feinberg, who holds $500,000–$1 million in xAI shares via a 1789 Capital fund, whose partner is Donald Trump Jr. Additionally, ambassadors to Ireland, the Czech Republic, and Portugal have also reported holdings in SpaceX or xAI.

It is noteworthy that not all officials holding these assets are permitted to retain their positions. Kevin Warsh, who succeeded Jerome Powell as Federal Reserve Chair last month, declared holdings in a fund related to the Duquesne Family Office, which carries indirect exposure to SpaceX. Warsh stated explicitly in his ethics filing that he would divest before officially taking office.

“Perhaps legal, but not best practice,” Multiple Connections Raise Conflict of Interest Concerns

SpaceX has multiple business ties with the Department of the Interior: The National Park Service uses Starlink services, SpaceX has applied to the Fish and Wildlife Service under the Department of the Interior for construction near protected areas, and the Department is a SpaceX contract client.

Scott Amey, General Counsel for the Project on Government Oversight, stated this arrangement is “perhaps legal, but not best practice,” “best practice is to fully exit, eliminating even the appearance of a conflict.”

Government ethics lawyers note the unusual nature of this incident far exceeds the IPO itself. Caleb Burns of Wiley Rein LLP said SpaceX is a “unique event,” “there’s no precedent in history”—this is the largest IPO ever, led by Musk, who has close ties to the President, and who via DOGE (Department of Government Efficiency) is involved in nearly all federal agencies.

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