Lawmakers want feds to take a hard look at Karen Budd-Falen over lithium water deal

The original story by Angus M. Thuermer Jr. for WyoFile.

Two Democratic members of Congress are asking federal watchdogs to investigate Wyoming attorney Karen Budd-Falen, saying new evidence suggests she may have crossed ethical – and possibly criminal – lines while working at the US Department of the Interior during President Donald Trump’s administration.

The request zeroes in on a $3.5 million water contract tied to lithium mining in Nevada and Budd-Falen’s role approving that same project while serving as one of Interior’s top officials.

In a letter sent Tuesday to Acting Interior Department Inspector General Caryl Brzymialkiewicz, Reps. Jared Huffman of California and Maxine Dexter of Oregon say the situation raises “serious questions” that warrant immediate investigation. Huffman is the ranking Democrat on the House Natural Resources Committee, while Dexter leads the committee’s oversight and investigations subcommittee.

At the center of the controversy is a deal between Nevada Lithium Corporation and Budd-Falen’s family-owned Home Ranch in Nevada, which agreed to supply water for the Thacker Pass Lithium mine. The lawmakers say the contract – worth $3.5 million – was contingent on Interior Department approval of the mine, approval that ultimately came while Budd-Falen was a senior Interior official.

The letter questions whether Budd-Falen, then the third-highest-ranking official at Interior, used her position for personal financial gain, failed to disclose a major family business interest, or violated federal ethics and conflict-of-interest laws.

“Recently uncovered evidence raises serious questions,” the lawmakers wrote, including whether Budd-Falen’s actions “may have implicated federal ethics and conflict-of-interest restrictions, and possibly violations of federal criminal law.”

According to the letter, Budd-Falen never disclosed the water deal involving her family’s ranch – something federal law and ethics rules generally require of political appointees. Huffman and Dexter cite reporting from Public Domain, The New York Times and other outlets to support their claims.

The 12-page letter also details a meeting between Budd-Falen and Nevada Lithium Corporation officials during Trump’s first term, while the Thacker Pass mine was still under federal review. It lays out a timeline showing how environmental and wildlife concerns raised by the US Fish and Wildlife Service were overridden as Interior moved the project forward.

“The record unequivocally reflects an official meeting” between Budd-Falen and the mining company during the review process, the lawmakers wrote, alongside a “continuing, multi-million-dollar financial interest tied to the project’s success.”

Budd-Falen is a well-known conservative legal activist in the West. She served at Interior during Trump’s first term, returned to private practice in Cheyenne between administrations, and was appointed again in March as associate deputy secretary of the department.

While acknowledging recent Supreme Court rulings that have narrowed what qualifies as public corruption, Huffman and Dexter say that line doesn’t excuse misconduct by agency officials.

“Public corruption by those [a president] installs in federal agencies is still unlawful,” the letter states.

Among other things, the lawmakers are asking whether Budd-Falen properly disclosed her ranching interests, whether family business structures were used to obscure the relationship between her, the ranch and the mining company, and whether she used her position to influence the mine’s approval. They also want to know if Interior officials sidelined Fish and Wildlife objections or took steps to limit congressional oversight or public transparency.

The White House referred questions Tuesday to the Interior Department, which did not respond to an email seeking comment. Wyoming’s congressional delegation – Sens. John Barrasso and Cynthia Lummis and Rep. Harriet Hageman – also did not respond to requests for comment.

A conservation group is already calling for action.

“At the very least, Secretary Burgum must suspend Karen Budd-Falen pending the outcome of any investigation,” Aaron Weiss of the Center for Western Priorities said in a statement.

He added that Budd-Falen’s “lack of candor” creates legal risks that could bog down the Interior Department for years.

For now, Huffman and Dexter are waiting to see whether the inspector general opens a formal investigation – and whether the questions surrounding the lithium deal finally get answers.