Documents reported by The New York Times indicate Interior Department official Karen Budd-Falen did not disclose a family financial interest tied to the Thacker Pass lithium project. Her husband, Frank Falen, sold water rights to a Lithium Americas subsidiary for $3.5 million in 2018 — a sale reportedly linked to Interior-issued permits. Budd-Falen listed the ranch as an asset but did not disclose the contract; it is unclear whether an ethics waiver was granted. The Thacker Pass project has been fast-tracked and faces opposition from environmental and Indigenous groups.
Interior Official’s Family Tied To $3.5M Water Sale Linked To Thacker Pass Permit; Disclosure Questions Raised
UCG/Universal Images Group via G
Documents obtained by The New York Times show that the third-highest-ranking official at the U.S. Department of the Interior did not disclose her family’s financial interest in the Thacker Pass lithium project, raising potential ethics questions.
Indigenous activists have protested the construction of the Thacker Pass lithium mine, saying its approval infringes on the rights of nearby tribes. / Xinhua News Agency via Getty Images
What the records show: Frank Falen, owner of Home Ranch in northern Nevada, sold water rights to Lithium Nevada Corporation — a subsidiary of Lithium Americas — for $3.5 million in 2018. The sale was tied to the company’s plans for the Thacker Pass lithium mine near the ranch.
Associate Deputy Secretary of the Department of the Interior Karen Budd-Falen, seen here speaking at the 2024 Western Ag and Environmental Law Conference. / uacescomm/Flickr
At the time of the sale, Karen Budd-Falen served as deputy solicitor at the Interior Department, the agency responsible for managing federal lands and issuing permits. She is currently listed as an Associate Deputy Secretary at Interior. Reporting indicates the value of the water contract depended in part on Thacker Pass securing a federal permit.
U.S. Interior Secretary Doug Burgum walks to a television interview on the North Lawn of the White House on August 12, 2025 in Washington, DC. / Andrew Harnik / Getty Images
The New York Times also reported that Budd-Falen met with Lithium Americas executives for lunch in November 2019; a company spokesperson told reporters the meeting did not involve discussions about the mine.
The Stewart Lee Udall Building, headquarters of the U.S. Department of the Interior in Washington, D.C. / Kevin Dietsch/Getty Images
Disclosure and ethics questions: Federal ethics rules require senior officials to disclose potential conflicts of interest in public financial disclosure reports; waivers can be granted in limited circumstances. Budd-Falen listed Home Ranch as an asset in disclosure filings from 2018–2021 but did not list the 2018 water contract between Home Ranch and Lithium Americas. It remains unclear whether she received any ethics waiver. The Interior Department did not immediately respond to requests for comment.
“Karen knew so little about what was going on. She was not a decision maker on any BLM stuff, and she never had anything to do, even to be aware it was going on, with Nevada Lithium,” Frank Falen told The New York Times.
Project timeline and controversy: Thacker Pass received a permit approval shortly before the end of the first Trump administration in early 2021 after an expedited review that reportedly took under a year. Construction began in 2023. In October, the government announced it held a 5% stake in Lithium Americas.
The project has drawn strong opposition from environmental groups and Indigenous rights advocates. Critics say the mine threatens endangered species and infringes on tribal rights; a joint report from the ACLU and Human Rights Watch urged authorities to pause construction until affected tribes have been given free, prior, and informed consent.
Broader context: This case is one of several recent media reports highlighting ties between political appointees and potentially lucrative government-related business deals. For example, The New Yorker published analysis suggesting the president and his family could profit substantially under a second term, and ProPublica has reported on high-value contracts connected to associates of prominent political figures. Such reporting has intensified questions about transparency and conflicts of interest in federal contracting and ethics oversight.
Note: This article summarizes reporting by The New York Times, The Daily Beast, The New Yorker, ProPublica, the ACLU, and Human Rights Watch. Where possible, direct statements and requests for comment are attributed to the original outlets.
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