Two members of Congress asked federal officials Tuesday to investigate Wyoming lawyer Karen Budd-Falen for possible criminal violations while serving in President Donald Trump’s Interior Department.
A letter from Reps. Jared Huffman, D-Calif., and Maxine Dexter, D-Ore., to the Interior Department’s acting inspector general cites “new evidence … that demands immediate investigation.”
The correspondence under the U.S. House Committee on Natural Resources letterhead focuses on a water contract between Budd-Falen’s family ranch in Nevada, a lithium mining company and Interior Department approval of the Thacker Pass Lithium mine in that state.
Reps. Huffman and Dexter question whether Budd-Falen, the third-highest-ranking person at DOI, “used her position at the DOI for self-enrichment,” violated ethical standards and broke federal law. The committee members’ Tuesday letter to Acting DOI Inspector General Caryl Brzymialkiewicz alleges the Nevada Lithium Corporation’s $3.5 million water contract with Budd-Falen family’s Home Ranch in Nevada was contingent on federal Interior Department approval.
Ms. Budd-Falen’s financial interests and official activities may have implicated federal ethics and conflict-of-interest restrictions, and possibly violations of federal criminal law.”
Jared Huffman and Maxine Dexter
The two representatives, citing reports by Public Domain, the New York Times and other sources, said Budd-Falen never disclosed that her family’s ranch in Nevada had inked a deal with the Nevada Lithium Corporation. Federal law and ethic rules require strict financial disclosures and reporting by political appointees like Budd-Falen.
“Recently uncovered evidence … raises … serious questions, including whether Ms. Budd-Falen’s financial interests and official activities may have implicated federal ethics and conflict-of-interest restrictions, and possibly violations of federal criminal law,” the letter states.
Huffman is the ranking member of the Natural Resources Committee and represents California’s second district along the coast north of San Francisco. Dexter represents most of Portland, Oregon, and is the top Democrat on the committee’s oversight and investigations subcommittee.
Budd-Falen, a longtime Western conservative legal activist, served in the Interior Department during Trump’s first administration and was appointed in March as the agency’s associate deputy secretary. Between those periods of government service she worked at the Budd-Falen law office in Cheyenne.
Serious questions
The 12-page letter from the representatives documents a meeting between Budd-Falen and the Nevada Lithium Corporation at the Department of Interior during Trump’s first term. The letter also catalogs a series of actions between and among the U.S. Fish and Wildlife Service, the Bureau of Land Management and high-ranking Interior Department officials regarding mine approval.
The letter outlines how worries about environmental and wildlife protections — protections that could have stalled or blocked mine approval — were overridden by department officials.
“The record unequivocally reflects an official meeting between Ms. Budd-Falen and the Nevada Lithium Corporation scheduled during the pending federal review for the Thacker Pass lithium mine, combined with a continuing, multi-million-dollar financial interest tied to the project’s success,” the committee members wrote.
“These facts raise serious questions regarding Ms. Budd-Falen’s compliance with federal ethics and conflict-of-interest laws and warrant the immediate attention of your office….”
Huffman and Dexter acknowledge a shifting legal landscape in government, but draw a line.
“While the Supreme Court has given President Trump a virtual free pass to abuse the public’s trust to enrich himself, public corruption by those he installs in federal agencies is still unlawful,” their letter reads. Consequently, they asked the acting DOI inspector for several answers.
Among those are whether Budd-Falen’s ranching interests have been appropriately identified as she works on grazing issues for the administration and whether she was required to disclose the $3.5 million deal between her family ranch in Nevada and the mining company.
They want to know whether family business structures obscured the relationships between and among Budd-Falen, the family ranch and the mining company and whether she used her official position to influence federal policy and action regarding mine approval.
The letter seeks an answer to whether officials sidelined objections of the U.S. Fish and Wildlife Service regarding the mine and whether any actions by officials “were intended to delay, frustrate, or limit congressional oversight or public disclosure.”
The White House on Tuesday referred questions to the Department of the Interior. The Interior Department did not respond to an email seeking comment.
U.S. Sen. John Barrasso’s office did not respond to a Tuesday email seeking comment. WyoFile did not receive a response to an email on the topic sent to U.S. Sen. Cynthia Lummis’s office. Rep. Harriet Hageman’s office also did not respond to an email Tuesday.
A conservation group, however, called for Budd-Falen’s suspension.
“At the very least, Secretary Burgum must suspend Karen Budd-Falen pending the outcome of any investigation,” Aaron Weiss, deputy director at the Center for Western Priorities said in a statement. “Her lack of candor to ethics officials casts a shadow on anything that crosses her desk today, and on everything that she worked on during the first Trump administration. Because Budd-Falen’s portfolio is so large, the litigation risks posed by her position alone could paralyze the Interior department for years to come.”
FINALLY GOT IT FIGURED OUT!!!!
The reason Karen Budd- Falen could participate in the water rights sale is because there was no federal agency involved in the matter!! The water rights sale involved the State of Nevada which appropriates ground and surface water rights, the ranching family which owns the senior surface water rights and the lithium mining company. The water rights could be sold without the approval of any federal agency. The State of Nevada would certainly be involved in the transfer of water rights from the ranching family to the mining company of course. Since there were no federal agencies involved, Karen did not have a conflict of interest or ethics violations. Representatives from California and Oregon would not have working knowledge concerning sale/transfer of water rights in Nevada.
Lee, this is taken directly from the article: “The 12-page letter from the representatives documents a meeting between Budd-Falen and the Nevada Lithium Corporation at the Department of Interior during Trump’s first term. The letter also catalogs a series of actions between and among the U.S. Fish and Wildlife Service, the Bureau of Land Management and high-ranking Interior Department officials regarding mine approval.”
Perhaps I don’t have the clarity of thought that you do, but in the simplest terms, a meeting regarding mine approval with her in attendance was the perfect avenue to recluse herself due to a conflict of interest. Cause, if the mine hadn’t been approved, the water wouldn’t have been needed. Just sayin’
Additional comments:
1.) Wyoming attorneys typically consult the ” Office of Bar Counsel” for their opinion on whether or not there is a conflict of interest which would require the attorney recusing themselves from a legal matter. It just happened in our county and the attorney did recuse herself based on advice she obtained from OBR. An experienced attorney like Karen Budd-Falen is well aware of the scrutiny which is normal when assessing conflicts of interest.
2.) Ranchers in Nevada control a large portion of the groundwater and surface water rights in the desert areas. These water rights are senior water rights dating back to the homesteading days. Later economic development such as gold mining and the lithium project would require the developer to purchase water rights from the ranchers in order for their project to proceed. We have the same situation in Wyoming – there has been discussion on where the developers of the proposed trona mines in the Evanston area – solution mining – would acquire water rights and sources ( water rights owned by ag interests ) have been mentioned – some at considerable distance from the deep solution trona mines. These water rights would need to be purchased. So its not unusual for the Budd-Falen ranch in Nevada to have senior water rights; and, the Budd-Falen family would never have bought a ranch without water – especially senior water rights. There’s a lot of information on the internet about ranchers controlling senior water rights in Nevada.
What Rick Harrison says.
Release the Epstein files
Cmon now.. Yes Karen Budd-Falen has a good reputation. Then again, many in the Trump administrations did, before the were touched by Trump. Many have gone down the rabbit hole in one way or another, most claiming they just did not know.
While their at it, how about looking into and following through with felon Trump & crew’s corruption?
How about including Clinton, Obama, and the Biden crime family.
Don’t forget the Trump crime family, pay to play.
This administration is all about enriching yourself ,if convicted a full pardon will follow. They won’t even investigate a murder of a us citizen by ice agents .
Although our political philosophies are different, I have always found Karen Budd to be an honest and zealous advocate, steadfast in her beliefs and ethically beyond reproach. I will continue to believe that unless and until a formal investigation would prove otherwise.
Agreed. Karen is outstanding and extremely competent – she is being attacked because she is so effective and experienced – she has even argued before the US Supreme Court. Just look at where the complaining Representatives are from – like the Portland area. Karen is the west coast liberals worst nightmare and they are looking for any opportunity to suppress her. The liberal progressives just can’t stand the thought of a Wyoming conservative being in the Trump administration. However, to 70-75% of Wyoming’s voting population – conservative Republicans – she is a champion and has our full support.
Lee- so Karen B-F purposely not disclosing her family’s ranch ownership as the sole source provider of water to the Thacker lithium project is not concerning to you ? You therefore default to a generalized condemnation of amorphous liberals not seen or identified to be directly involved in the case at hand ?
Unfortunately , you also seem obvlivious or at least selectively indignant to Karen B-F’s long trainwreck of anti-enviro litigation right here in Wyoming , going back decades.
Just wait until Trump is out of office, there will be many of these types of investigations- and more.
Budd-Falen is a rabid anti public lands access rattlesnake and she’s definately working for the right corrupt administration. How’d ‘dat stance on corner crossing work out for ya, Karen?