SCOOP: A Top Trump Official Has Financial Ties To Controversial Nevada Lithium Project
Karen Budd-Falen’s family ranching operation agreed to sell water rights to the company developing the Thacker Pass lithium mine.
This story was co-published with High Country News.
Karen Budd-Falen, a top official at the Department of the Interior, has financial ties to the controversial Thacker Pass lithium mine in northern Nevada — a project that the Trump administration worked to fast-track during its first term. In recent months, the administration took an equity stake in the mine and the mine’s parent company.
After an unexplained delay, Public Domain and High Country News obtained Budd-Falen’s financial disclosure earlier this month, which details her family’s extensive land holdings. Among them is Home Ranch LLC, a Nevada ranching operation valued at over $1 million. Nevada’s business search database shows a Home Ranch LLC that listed Frank Falen as the manager in February 2022. Frank Falen is also the name of Karen Budd-Falen’s husband.
In November 2018, not long after Karen Budd-Falen joined the first Trump administration as a top legal official at the Interior Department, Home Ranch LLC agreed to sell water rights to Lithium Nevada Corporation, the company developing the Thacker Pass mine, for an undisclosed amount of money, according to a Securities and Exchange Commission filing. Frank Falen is listed on the document.
A Home Ranch also appears in planning documents that Lithium Nevada submitted to federal regulators during Trump’s first term. A monitoring plan for Thacker Pass, dated July 2021, notes that the company intended to use existing stock water wells owned by Home Ranch LLC to “monitor potential drawdown impacts” from its mining operations.
The water purchase agreement and other records raise questions about potential conflicts of interest. Budd-Falen was appointed in March as associate deputy secretary to Interior Secretary Doug Burgum — a position that does not require Senate confirmation. She also served as a high-ranking legal official at the Interior Department during President Trump’s first term.
It was during that earlier government stint that her official calendar lists a November 6, 2019 meeting in which Budd-Falen was scheduled to have “lunch with Lithium Nevada.”
The Interior Department did not immediately respond to Public Domain and High Country News’s request for comment. Frank Falen also did not respond.
In 2019, Lithium Nevada, a subsidiary of the Canadian mining firm Lithium Americas, was seeking speedy approval for its Thacker Pass mine in northern Nevada. In the waning days of the first Trump administration it received just that. In January 2021, the Bureau of Land Management approved the mine project, which includes some 5,700 acres of public land.
The $2.2 billion, open-pit mine project has drawn fierce opposition from area tribes and environmentalists, who argue it threatens water resources, endangered species and sacred cultural sites. Thacker Pass, known as Peehee Mu’huh to the Paiute Shoshone people, was the site of an 1865 massacre of at least 31 Paiute people.
Budd-Falen was being considered to lead the BLM during Trump’s first term, but turned down the director job when she learned that she and her husband would have to sell their interests in their family ranches to avoid conflicts of interest, she told The Fence Post in 2018.
Since returning to power, Trump and his team have again worked to move the project forward, as part of a broader push to boost critical mineral mining in the U.S. In September, the Trump administration struck a deal with Lithium Americas to take a 5% equity stake in both the Thacker Pass mine and the company, in exchange for the release of loan money from the Department of Energy.
Budd-Falen has largely worked behind the scenes at the Interior Department. Little is known about what issues she has focused on since returning to the sprawling agency. Notably, Interior officials have yet to release her ethics agreement, which would detail any companies or projects that are off limits.
“Did she have any oversight of the environmental review process regarding Thacker Pass? It is a big question,” said Kyle Roerink, executive director of the Great Basin Water Network, a water conservation group in Nevada. “If she didn’t recuse herself, it would fly in the face of the impartial decisionmaking that Americans expect from government officials.”
As someone who's been following the Thacker Pass story for years, I appreciate learning this additional bit of ugly politics.