DOJ moves to drop discrimination suit against Musk's SpaceX
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Elon Musk at the White House on Feb. 11. Photo: Andrew Harnik/Getty Images
The Department of Justice (DOJ) indicated Thursday that it will drop a case accusing Elon Musk's company SpaceX of discriminating against asylees and refugees in its hiring process.
Why it matters: Musk's companies had faced a slew of potential legal and regulatory ramifications under the Biden administration, but Thursday's filing could make the SpaceX discrimination case one of the first to be formally dropped under President Trump.
- SpaceX — like some of Musk's other companies — receives lucrative government contracts.
- Neither the Justice Department nor SpaceX immediately responded to Axios' requests for comment on Friday.
Driving the news: The Biden administration brought the suit against Musk's company, arguing it had violated federal law by refusing to hire or consider applicants based on their citizenship status.
- The case was blocked from proceeding in November 2023 pending a challenge over the Justice Department's administrative authority in the case.
- In a filing in the U.S. District Court for the Southern District of Texas on Thursday, federal prosecutors asked that the pause on proceedings be lifted so that they could file a notice of dismissal with prejudice — a move that would bar them from bringing the charges again, Reuters reported.
- The filing did not specify when exactly the case would be dropped, per the New York Times.
Flashback: In the original lawsuit, the Justice Department accused SpaceX recruiters and high-level officials of "actively discouraged asylees and refugees" from working at the company.
- SpaceX has denied wrongdoing in the case.
The big picture: The Trump administration and its new Department of Government Efficiency, which Musk has played a leading role in, have targeted federal agencies that had taken legal or regulatory action against Musk's companies.
- Last month Trump fired the acting chair of the National Labor Relations Board (NLRB). Other dismissals at the agency have paralyzed its ability to do its work, including on 24 pending investigations into Musk's companies, the New York Times reported.
- DOGE has moved to effectively shut down the Consumer Financial Protection Bureau. The agency houses consumer complaints about countless companies, including Tesla.
Go deeper: SpaceX refused to hire asylees and refugees, DOJ alleges in new lawsuit
