A high-ranking official within the Department of the Interior has significant financial connections to the controversial Thacker Pass lithium mine in northern Nevada, a project that saw accelerated efforts for approval during the previous administration and more recently, an equity stake taken by the government in the mine and its parent company. Karen Budd-Falen, currently serving as associate deputy secretary to Interior Secretary Doug Burgum, has family interests tied to a Nevada ranching operation that has engaged in business with Lithium Nevada Corporation, the entity developing the mine. This revelation comes after a period of delay in obtaining Budd-Falen’s financial disclosure, which was eventually secured and details her family’s extensive land holdings, including Home Ranch LLC, a Nevada ranching enterprise valued at over $1 million. Public records indicate that Frank Falen, Budd-Falen’s husband, was listed as the manager of Home Ranch LLC in February 2022.

The intertwined financial relationship dates back to November 2018, shortly after Budd-Falen joined the Interior Department during the Trump administration. Home Ranch LLC entered into an agreement to sell water rights to Lithium Nevada Corporation for an undisclosed sum, according to a filing with the Securities and Exchange Commission, with Frank Falen listed on the document. Further evidence of this connection appears in planning documents submitted by Lithium Nevada to federal regulators during that same period. A monitoring plan for Thacker Pass, dated July 2021, explicitly states the company’s intention to utilize existing stock water wells owned by Home Ranch LLC to assess potential groundwater drawdown impacts stemming from mining operations. These arrangements, including the water purchase agreement, raise substantial questions regarding potential conflicts of interest for a senior government official involved in environmental and resource management.

Budd-Falen’s tenure at the Interior Department is notable, particularly her role during the first Trump administration where she was considered for the leadership of the Bureau of Land Management (BLM). While she ultimately declined that director position, she cited the requirement to divest family ranching interests to avoid conflicts of interest as a reason, as reported by The Fence Post in 2018. Her current appointment as associate deputy secretary does not require Senate confirmation. Compounding these concerns, an entry on Budd-Falen’s official calendar from November 6, 2019, lists a scheduled "lunch with Lithium Nevada," occurring during her previous high-ranking legal role at the Interior Department.

The Thacker Pass mine project itself has been a focal point of contention and accelerated government action. In January 2021, the Bureau of Land Management approved the project, which encompasses approximately 5,700 acres of public land. The $2.2 billion open-pit mine plan has faced significant opposition from Indigenous tribes and environmental groups who cite potential threats to water resources, endangered species, and culturally significant sites. Thacker Pass holds deep historical and spiritual importance for the Paiute Shoshone people, known to them as Peehee Muʻhuh, and was the site of a tragic massacre of at least 31 Paiute individuals in 1865.

The push to advance the Thacker Pass mine aligns with a broader national strategy to bolster domestic production of critical minerals, essential for the transition to renewable energy technologies and electric vehicles. In September, the Trump administration finalized an agreement with Lithium Americas, the parent company of Lithium Nevada, to acquire a 5% equity stake in both the Thacker Pass mine and the company. This transaction was structured in exchange for the release of loan funds from the Department of Energy, underscoring the strategic importance placed on this project.

Despite her prominent position, Budd-Falen’s specific responsibilities and the issues she has focused on since her return to the Interior Department remain largely undisclosed. Crucially, her ethics agreement, which would typically outline any companies or projects she must recuse herself from due to potential conflicts, has not yet been publicly released by Interior officials. This lack of transparency has fueled concerns among watchdog groups and environmental advocates. Kyle Roerink, executive director of the Great Basin Water Network, a Nevada-based water conservation organization, voiced these concerns, questioning whether Budd-Falen had any oversight of the environmental review process for Thacker Pass. He emphasized that failure to recuse herself, if applicable, would undermine the impartiality expected of government officials. The ongoing scrutiny of Budd-Falen’s financial ties highlights the complex interplay between resource development, environmental protection, and the ethical conduct of public officials in the pursuit of critical mineral resources. The situation at Thacker Pass also reflects a broader global challenge: balancing the urgent need for materials like lithium, crucial for decarbonization efforts, with the imperative to respect Indigenous rights, protect delicate ecosystems, and ensure transparent governance. As the world increasingly relies on such minerals, the ethical frameworks and regulatory oversight governing their extraction become ever more critical.