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Musk paying voters to cast ballots? Department of Justice: illegal!

Stock SpotlightThursday, Oct 24, 2024 10:52 am ET
1min read

Elon Musk's cash giveaways to residents of key swing states are drawing a lot of attention—and a warning from the Justice Department.

Federal law prohibits paying people to register to vote, and the Justice Department has cautioned that Musk's PAC (political action committee) could be violating this law. Specifically, the law forbids knowingly or willfully paying individuals to register to vote in elections involving federal candidates. It also makes it illegal to pay people to vote, aiming to keep financial motives out of the electoral process.

In this case, Musk's PAC is offering registered voters in Pennsylvania and six other battleground states a chance to win $1 million by signing a petition supporting free speech and gun rights (essentially signaling support for Trump). 

In return, Trump has promised to make Musk the head of a new government efficiency commission, which would have the authority to recommend cuts to federal agencies and changes to regulations. This could give Musk, who is both the world's richest person and a major government contractor, significant influence over the agencies that regulate his businesses—raising concerns about a potential conflict of interest.

Will Musk be charged? Historically, cases like these are handled on a case-by-case basis. 

Musk is not the first wealthy individual to run a sweepstakes tied to voting. In 1982, businessman Edward Shaw held a lottery for California residents who voted. Despite a warning from the Justice Department, Shaw was never charged, and California election officials noted that the sweepstakes had little impact on voter turnout.

However, this doesn't necessarily mean Musk is in the clear. Prosecutions for paying people to register to vote are rare but not unheard of. For example, in the early 1970s, a federal investigation into voter fraud during the 1968 presidential election led to the convictions of three men and a police officer in Chicago for paying homeless individuals to register in hotel lobbies.

What do experts think?

Richard Hasen, an election law expert at UCLA, believes Musk's cash offer creates an illegal financial incentive to register. "Whether it's $100 or a chance to win $1 million, it's illegal," he said, adding that Musk's awareness of the law banning registration-buying could also be significant.

Bradley Smith, a former chairman of the Federal Election Commission, disagrees. He argues that the incentives are too indirect to be illegal. "If his real goal is simply to encourage registration, it seems like a very inefficient way to do it," Smith remarked.

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