The Justice Department has announced plans to withdraw a discrimination lawsuit against SpaceX, the aerospace company led by Elon Musk. The lawsuit, initiated during the Biden administration, alleged that SpaceX had violated federal law by imposing citizenship and residency requirements on job applicants, thus discriminating against asylum seekers and refugees.
On Thursday evening, the DOJ filed an unopposed motion in a Texas federal court to lift a stay on the case, indicating its intention to formally dismiss the lawsuit. While no specific reasons were provided for this withdrawal, a judge had previously raised concerns about the DOJ’s authority to pursue the claims against the company.
The lawsuit had claimed that SpaceX not only enforced illegal hiring practices by requiring applicants to be U.S. citizens or permanent residents but also actively discouraged asylum seekers and refugees from applying for positions. Musk, who has been vocal in his criticism of the lawsuit, labeled the allegations as politically motivated. He argued that SpaceX was advised that hiring individuals without permanent residency could violate international arms trafficking laws, which would constitute a criminal offense.
This development comes as Musk assumes a more prominent role within the Trump administration, where he is leading efforts to implement cost-cutting measures across various federal agencies as part of the newly established Department of Government Efficiency (DOGE). These initiatives have led to contract cancellations and staffing cuts at several agencies, including those that have previously investigated SpaceX and Musk’s other ventures.
The Federal Aviation Administration (FAA), which had previously proposed a fine of $633,000 against SpaceX for violating launch license requirements, is one of the agencies under scrutiny. The new transportation secretary, Sean Duffy, confirmed during a recent Senate hearing that DOGE officials are now embedded within the FAA to review the proposed penalties.
In a related note, SpaceX’s regulatory challenges appear to be diminishing. Earlier this week, a Texas-based environmental group dropped a separate lawsuit against the company concerning alleged water pollution at its launch site near Brownsville.
As the DOJ moves to dismiss the case, neither Musk, SpaceX, nor the DOJ has issued public statements regarding this latest development. The outcome of this legal battle and its implications for SpaceX remain to be seen as the company continues to navigate its regulatory landscape.