Lawmakers are calling for an investigation into a top Interior Department official after records show her family allegedly earned $3.5 million tied to a Nevada lithium mine while she held a senior role overseeing related projects.
House Democrats say the documents suggest Associate Deputy Secretary Karen Budd-Falen may have used her position in ways that allegedly benefited her family’s financial interests.
House Natural Resources Committee Ranking Member Jared Huffman, D-Calif., and Oversight and Investigations Subcommittee Ranking Member Maxine Dexter, D-Ore., are asking the Department of the Interior's Office of Inspector General to examine Budd-Falen for potential conflicts of interest, ethics violations, and self-dealing.
Committee Democrats said new evidence shows Budd-Falen may have helped her family earn the $3.5 million from the Thacker Pass lithium project. Records indicate her family sold water rights to Nevada Lithium Corporation that were essential for the mine’s federal approval.
The documents also show Budd-Falen secretly met with company executives in her DOI office in November 2019 while serving as Deputy Solicitor, at a time when federal approval for the mine was still pending. The potential payoff for her family was contingent on the mine receiving federal approvals.
Lawmakers said the project faced obstacles and pushback from career scientists at the U.S. Fish and Wildlife Service, who raised concerns about impacts on endangered species and groundwater. The scientists described portions of the environmental review as wholly inadequate, but political appointees and Bureau of Land Management officials moved forward with the project.
The Budd-Falen family received the $3.5 million payment from Nevada Lithium Corporation in November 2023 after the mine obtained federal approval. Despite filing financial disclosures during this period, Budd-Falen reported income from her family ranch as "None (or less than $201)."
Interior has not answered congressional inquiries and instructed staff not to cooperate with oversight requests. Huffman and Dexter are formally demanding that the DOI Inspector General investigate potential ethics violations and criminal conflicts of interest.
A spokesperson for Lithium Americas, Tim Crowley, said in a statement, “Lithium Americas works closely with our neighbors and surrounding communities, including the Home Ranch, to ensure the successful development of the Thacker Pass project and long-term environmental health in the region. With support from the Administration, Department of Energy, and our valued partners, we’re building large-scale lithium production, strengthening the U.S. supply chain, creating high-quality jobs, and contributing to America’s long-term energy security and economic resilience.”
The lawmakers provided links to a full letter and a previous letter from November 2025 detailing their concerns.
For years, a mining company-- Lithium Americas-- and two back-to-back presidencies, have pushed for a mine at the site.
Some Native Americans have been protesting the Thacker Pass lithium mine, but others aren't against it.
Lithium Americas gave the federal government a five percent stake in the project.
