Blumenthal Calls for IG Investigation into Top Trump Interior Official for Blatant Violations of Conflicts-of-Interest Law

[WASHINGTON, DC] - U.S. Senator Richard Blumenthal (D-CT), Ranking Member of the Senate Permanent Subcommittee on Investigations (PSI), today called for an investigation into U.S. Department of the Interior Associate Deputy Secretary Karen Budd-Falen for obvious conflicts of interests and her failure to fully observe ethical requirements applicable to senior Administration officials. In a letter sent today to Acting Inspector General Dr. Caryl Bryzymialkielher, Blumenthal called for a thorough investigation into Budd-Falen after recent reporting from

"All federal officials are required by law to discharge their official duties in the best interest of the American public-not personal financial interests. Yet, Ms. Budd-Falen's obvious conflicts of interest and her failure to fully observe the important ethical requirements applicable to a senior position of public trust raise questions about her ability to impartially serve in the third-highest ranking position at the Interior Department," Blumenthal wrote in a letter to Acting Inspector General Bryzymialkielher.

In a separate letter sent to Budd-Falen, Blumenthal called out Budd-Falen for participating in policy decisions that directly benefit her personal financial interests and failing to disclose her family's interest in a lithium mine whose viability depended on an Interior Department permit. Blumenthal urged her to fully disclose any benefit she or her family may have received as a result of her involvement in regulatory decisions at the Interior Department.

"Your failure to observe the important ethical requirements applicable to a senior position of public trust appears to be part of a longstanding pattern. During your service in the Interior Department under the first Trump Administration, you failed to disclose your husband's sale of water rights to the largest lithium mine in the country for $3.5 million. Notably, the sale was contingent on Lithium Nevada Corp.'s ability to obtain a permit from the Interior Department, where you served as deputy solicitor for wildlife from 2018 to 2021," Blumenthal wrote in a letter to Budd-Falen.

The full text of Blumenthal's letter to Bryzymialkielher is available here and below. The full text of Blumenthal's letter to Budd-Falen is available here.

Dear Ms. Brzymialkiewcz:

I write to request that you thoroughly investigate the apparent impermissible conflicts of interest faced by U.S. Department of the Interior ("Interior Department") Associate Deputy Secretary Karen Budd-Falen. Recent reporting and Ms. Budd-Falen's public comments indicate that she directly participates in livestock grazing policy decisions that directly and predictably benefit her family's multi-million-dollar ranch interests, potentially violating conflict-of-interest law.^[1] Additionally, Ms. Budd-Falen previously failed to disclose her husband's $3.5 million sale of water rights to a lithium mine whose viability depended on a Department of Interior permit.^[2]

All federal officials are required by law to discharge their official duties in the best interest of the American public-not personal financial interests. Yet, Ms. Budd-Falen's obvious conflicts of interest and her failure to fully observe the important ethical requirements applicable to a senior position of public trust raise questions about her ability to impartially serve in the third-highest ranking position at the Interior Department. Accordingly, I ask that you promptly conduct a thorough investigation of and issue public findings and recommendations addressing Ms. Budd-Falen's participation in policy decisions that directly benefit her financial interest and her adherence to all applicable financial disclosure obligations. At minimum, your investigation should address the following important questions.

1. Whether and the extent to which Ms. Budd-Falen or her family have directly benefitted from policy decisions in which she participated during her Interior Department tenure.
2. The extent to which Ms. Budd-Falen's participation in policy decisions that benefit her financial interests occurred before or after March 11, 2026, or both.
3. Whether Ms. Budd-Falen's participation in policy decisions that benefit her financial interests violated any law, regulations, or policies applicable to federal government employees or Interior Department personnel.
4. Regardless of whether Ms. Budd-Falen had or maintains an actual conflict of interest, whether her participation in policy decisions that benefit her financial interests impermissibly creates the appearance of a conflict.
5. Whether the Office of the Solicitor's March 11, 2026 "limited waiver" adequately evaluates and determines that Ms. Budd-Falen's financial "interest is not so substantial as to be deemed likely to affect the integrity of the services which the Government may expect" from her.^[3]
6. The extent to which Ms. Budd-Falen has fully and timely disclosed all financial interests required to be disclosed on OGE Form 278e, to the Office of the Solicitor, or otherwise.

Thank you for your attention to this important matter.

Sincerely,

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