Elon Musk’s $1M Daily Offer – Is It Legal?

Elon Musk, the billionaire entrepreneur known for his leadership at Tesla and SpaceX, is stirring up political and legal debate with his latest bold move. As Musk continues to throw his financial weight behind Donald Trump’s bid for the White House, his announcement of a $1 million per day giveaway has left election experts raising serious questions about its legality.

Musk, whose fortune is estimated at $242 billion, has long been a supporter of conservative causes, but his new offer is on a different scale. The tech mogul is now pledging to distribute $1 million daily to voters who sign a petition from his political action committee (PAC) in support of the U.S. Constitution, specifically its First and Second Amendments. The catch? Participants must be registered voters, a condition that experts warn could lead to legal trouble.

Some election law specialists suggest that Musk’s giveaway could potentially violate federal laws that prohibit providing financial incentives in exchange for voter registration or participation in elections. “Though maybe some of the other things Musk was doing were of murky legality, this one is clearly illegal,” noted Rick Hasen, a UCLA political science professor, on the Election Law Blog.

Hasen’s primary concern is the link between cash payments and voter registration. According to federal law, it is illegal to pay individuals to register to vote or to influence their participation in elections. Hasen explained in a recent interview that “the problem is that the only people eligible to participate in this giveaway are the people who are registered to vote. And that makes it illegal.”

Concerns from State Officials

In Pennsylvania, one of the most critical battleground states in the upcoming election, Democratic Governor Josh Shapiro has expressed concern over Musk’s $1 million daily pledge. Shapiro, who formerly served as the state’s attorney general, voiced his worries on NBC’s “Meet the Press,” saying, “I think there are real questions with how he is spending money in this race, how the dark money is flowing, not just into Pennsylvania, but apparently now into the pockets of Pennsylvanians. That is deeply concerning.”

Musk’s PAC is currently on a tour of Pennsylvania, with a mission to register voters in support of Trump. Musk has publicly endorsed Trump and committed millions to his re-election campaign. This latest move to financially incentivize voters in swing states like Pennsylvania is seen by many as an attempt to secure a victory for the former president in the 2024 election.

While the legality of this scheme is still being debated, Musk has already started cutting checks. On Saturday, at an event in Harrisburg, Pennsylvania, Musk presented a check for $1 million to a man named John Dreher, who had signed the petition. A second check was reportedly issued on Sunday, though Musk and his PAC have remained tight-lipped when questioned about the legal implications of their giveaway.

Legal Gray Area

Experts are divided over whether Musk’s actions constitute a direct violation of election laws or if they merely tiptoe along the edge of legality. Brendan Fischer, a campaign finance lawyer, noted that the current setup of Musk’s giveaway raises “legal red flags.” While it’s legal to promote voter registration initiatives, offering a financial reward tied to that registration is where problems could arise. Fischer explained, “There would be few doubts about the legality if every Pennsylvania-based petition signer were eligible, but conditioning the payments on registration arguably violates the law.”

Similarly, Michael Kang, an election law professor at Northwestern University’s Pritzker School of Law, pointed out that while this scheme may not explicitly pay individuals to vote, it flirts with that line. “It’s not quite the same as paying someone to vote, but you’re getting close enough that we worry about its legality,” Kang stated.

Further complicating matters, recent rulings from the Federal Election Commission (FEC) have expanded the scope for PACs and candidates to collaborate on voter outreach efforts. Traditionally, such coordination has been strictly prohibited, but the FEC has permitted certain activities, like get-out-the-vote campaigns, under specific conditions. Whether Musk’s plan fits within those parameters remains unclear.

Trump’s Response

Trump, who was campaigning in Pennsylvania on Sunday, was asked about Musk’s involvement and his $1 million giveaway. The former president brushed off the topic, saying, “I haven’t followed that.” However, Trump praised Musk as a friend and an ally, adding, “He’s a friend of mine… He’s great for the country.”

The alliance between Musk and Trump continues to raise eyebrows, especially given the tech mogul’s commitment of at least $70 million to Trump’s re-election campaign so far. As Election Day approaches, both Musk and Trump appear to be doubling down on efforts to sway key battleground states.

Whether Musk’s financial incentives for voters will stand up to legal scrutiny is yet to be seen. For now, the billionaire’s unorthodox methods have undoubtedly drawn attention, and with $1 million per day being handed out until November 5th, the story is far from over.