US House Democrat blasts Commerce's 'highly concerning' $1.6 billion USA Rare Earth deal

[BumRushDaShow]

Last edited Sat Mar 21, 2026, 07:58 AM - Edit history (1)

Source: msn/Reuters

12h


WASHINGTON, March 20 (Reuters) - A senior House Democrat accused U.S. Commerce Secretary Howard Lutnick on Thursday of structuring Washington's $1.58 billion investment into USA Rare Earth in a way that gives the government "highly concerning" leverage over the company while boosting Lutnick's family-run investment firm.

In a 10-page letter, Representative Zoe Lofgren, the ranking member of the House Committee on Science, Space, and Technology, wrote that the proposed deal would let the Commerce Department keep an equity stake even if it decides not to invest while also leaving the company reliant on a $1.5 billion private capital raise led by Cantor Fitzgerald, the financial firm previously led by Lutnick and now run by his sons.

"This deal creates a massive personal conflict by granting the Secretary of Commerce overwhelming leverage to influence the behavior of a private company while positioning him to promote the interests of his sons as a condition of his support," wrote Lofgren, a California Democrat.

The letter offers a glimpse into the types of investigations Democrats could pursue if they regain power in Washington after the November midterm elections, as lawmakers scrutinize the administration's aggressive use of federal financing and equity stakes to reshape supply chains for critical minerals and other strategic industries. CEO Barbara Humpton and a spokesperson for USA Rare Earth were not immediately available to comment. The Commerce Department did not immediately respond to requests for comment.

Read more: https://www.msn.com/en-us/news/other/us-house-democrat-blasts-commerce-s-highly-concerning-1-6-billion-usa-rare-earth-deal/ar-AA1Z5bCy

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Link to Rep. Lofgren PRESS RELEASE - Ranking Member Lofgren Raises Alarm Over Terms of Commerce Department Equity Stake in USA Rare Earth, Condemns Lutnick Conflict of Interest

Link to LETTER (inquiry) (PDF) - https://democrats-science.house.gov/imo/media/doc/2026-03-19%20SST%20RM%20Lofgren%20-%20Letter%20to%20Secretary%20Lutnick%20-%20USA%20Rare%20Earth%20Equity%20Stake.pdf

[progree]

1. The Commerce Dept's BEA reports on GDP, Retail sales, PCE Inflation (the Fed's favorite inflation gauge)

and Personal Consumption and Income, and a few others
https://www.bea.gov/news/schedule

And so...

Just my ramblings pre-first cup of coffee

After my first cup, I'll probably look at this post again and think, wow, did I really post this? What was I thinking?

[sinkingfeeling]

2. Can you say 'corruption'?

[Bayard]

3. I remember when Rare Earth was just the name of a band

Now, its the smell of corruption--just like the trump boys' enterprises. They're just making money for their dads, skating around the Emoluments Clause.

[Exp]

4. Sofa King Corrupt! nt