U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Senate Energy and Natural Resources Committee, along with U.S. House Natural Resources Committee Ranking Member Jared Huffman (D-Calif.) and U.S. House Oversight and Government Reform Committee Ranking Member Robert Garcia (D-Calif.), has sent a letter to the Secretaries of Defense, Energy, Commerce, and the Interior. The lawmakers are requesting documents and a briefing about the Trump Administration’s recent purchases of equity stakes in several mining and mineral companies using taxpayer funds.
Since July 2025, the federal government has acquired ownership stakes in companies such as Trilogy Metals, Lithium Americas, MP Materials, Vulcan Elements, ReElement Technologies, Korea Zinc, and USA Rare Earth. These actions have made the government a significant shareholder in these firms—a move with few precedents in U.S. history outside of crisis interventions like those during the 2008 financial crisis or pandemic airline rescues.
The letter from Heinrich, Huffman, and Garcia raises concerns over lack of transparency regarding these deals. They wrote: “By privileging select corporations through direct ownership—essentially picking winners and losers—the government may undermine broader market competition and the development of innovative technologies or mineral or material substitutions.”
The lawmakers are demanding legal justifications for these investments, criteria for selecting these specific companies over others, and policies to prevent conflicts of interest given that the government both regulates and now owns shares in these firms.
They noted: “To date, there has been no public disclosure of procedures or safeguards in place to ensure these ownership stakes do not influence permitting decisions, regulation generation, alteration, or enforcement, contracting decisions, or any other agency decisions relating to these mining and minerals projects."
Another focus is on potential personal interests by Administration officials or Trump campaign donors who may hold stakes in these companies. The letter also asks what happens if these investments lose value or generate profits—and whether Congress will be notified about stock transactions.
“Ensuring these taxpayer dollars are effectively invested and potential proceeds are responsibly managed, without risk of corruption or conflicts of interest, is a matter of national security and public trust and warrants Congressional oversight,” according to the letter.
Concerns highlighted include USA Rare Earth’s hiring of Cantor Fitzgerald—chaired by Brandon Lutnick, son of Commerce Secretary Howard Lutnick—for fundraising after receiving federal investment. Also noted was an investment in Trilogy Metals occurring at the same time agencies were directed to expedite permitting for Ambler Road—a project needed for Trilogy’s mine—and that John Alfred Paulson (a major Trump donor) is a significant Trilogy shareholder.
Unlike past federal equity acquisitions limited to emergencies such as economic crises or industry bailouts, this approach involves routine use of taxpayer money to buy stakes while regulating those same companies.
In March 2025 before making these investments public policy changes were enacted via Executive Order 14241 which waived congressional notification requirements under the Defense Production Act for projects above $50 million. This order also exempted agencies from Securities and Exchange Commission disclosures that typically require mining companies to demonstrate their economic viability prior to attracting investors—measures designed to protect taxpayers from risky ventures.
Legislation titled “One Big Beautiful Bill Act” authorized nearly $13 billion for Defense Production Act grants plus approximately $350 billion in financing for critical minerals projects. The Administration used this funding—and $39 billion intended by the CHIPS and Science Act for semiconductor incentives—to purchase equity positions.
The lawmakers’ letter seeks detailed documentation on how decisions were made; terms of agreements; regulatory frameworks; sources of funds; oversight mechanisms; any links between administration personnel/donors/affiliates with company holdings; risk assessments; revenue handling procedures; reporting obligations; distinctions between national security versus market impact motivations; as well as conflict-of-interest management practices.
The committees involved claim jurisdiction over such oversight due to their mandates covering mining on public lands (House Natural Resources), broad investigative authority (House Oversight), and energy/resource development (Senate Energy & Natural Resources).
