Democrat senators press Commerce Secretary Lutnick on conflict of interest concerns in USA Rare Earth deal

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Democratic senators flagged conflict of interest concerns over the involvement of Commerce Secretary Howard Lutnick’s former firm Cantor Fitzgerald in a deal with critical minerals startup USA Rare Earth.

Senators Elizabeth Warren of Massachusetts, Chris Van Hollen of Maryland, and Ron Wyden of Oregon, the top Democrat on the Finance Committee, said in a letter obtained by CNBC that the deal raises questions about whether Lutnick’s immediate family members may have benefited financially.

“It is imperative that federal investments in critical industries be made free from conflicts of interest and on the merits,” the senators told Lutnick in the letter dated Feb. 25, requesting more information about his involvement in the transaction.

The Commerce Department issued a letter of intent last month to provide USA Rare Earth with $1.6 billion in funding to help scale up the company’s planned rare earth mining and magnet manufacturing business.