Karen Budd-Falen, a top official at the Department of Interior, has financial ties to the controversial Thacker Pass lithium mine in northern Nevada — a project that the Trump administration worked to fast-track during its first term. In recent months, the administration took an equity stake in the mine and the mine’s parent company.
After an unexplained delay, Public Domain and High Country News obtained Budd-Falen’s financial disclosure earlier this month, which details her family’s extensive land holdings. Among them is Home Ranch LLC, a Nevada ranching operation valued at over $1 million. Nevada’s business search database shows a Home Ranch LLC that listed Frank Falen as the manager in February 2022. Frank Falen is also the name of Karen Budd Falen’s husband.
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Karen Budd-Falen, senior partner at Budd-Falen Law Offices LLC, speaks at the 2024 Western Ag and Environmental Law Conference. Budd-Falen is a top official at the Interior Department. Credit: uacescomm / CC via Flickr
In November 2018, not long after Karen Budd-Falen joined the first Trump administration as a top legal official at the Interior Department, Home Ranch LLC agreed to sell water rights to Lithium Nevada Corporation, the company developing the Thacker Pass mine, for an undisclosed amount of money, according to a Securities and Exchange Commission filing. Frank Falen is listed on the document.
A Home Ranch also appears in planning documents that Lithium Nevada submitted to federal regulators during Trump’s first term. A monitoring plan for Thacker Pass, dated July 2021, notes that the company intended to use existing stock water wells owned by Home Ranch LLC to “monitor potential drawdown impacts” from its mining operations.
The water purchase agreement and other records raise questions about potential conflicts of interest. Budd-Falen was appointed in March as associate deputy secretary to Interior Secretary Doug Burgum — a position that does not require Senate confirmation. She also served as a high-ranking legal official at the Interior Department during President Trump’s first term.
It was during that earlier government stint that her official calendar lists a November 6, 2019 meeting in which Budd-Falen was scheduled to have “lunch with Lithium Nevada.”
In 2019, Lithium Nevada, a subsidiary of the Canadian mining firm Lithium Americas, was seeking speedy approval for its Thacker Pass mine in northern Nevada. In the waning days of the first Trump administration it received just that. In January 2021, the Bureau of Land Management approved the mine project, which includes some 5,700 acres of public land.
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The $2.2 billion, open-pit mine project has drawn fierce opposition from area tribes and environmentalists, who argue it threatens water resources, endangered species and sacred cultural sites. Thacker Pass, known as Peehee Mu’huh to the Paiute Shoshone people, was the site of an 1865 massacre of at least 31 Paiute people.
Budd-Falen was being considered to lead the BLM during Trump’s first term, but turned down the director job when she learned that she and her husband would have to sell their interests in their family ranches to avoid conflicts of interest, she told The Fence Post in 2018.
Since returning to power, Trump and his team have again worked to move the project forward, as part of a broader push to boost critical mineral mining in the U.S. In September, the Trump administration struck a deal with Lithium Americas to take a 5% equity stake in both the Thacker Pass mine and the company, in exchange for the release of loan money from the Department of Energy.
Budd-Falen has largely worked behind the scenes at the Interior Department. Little is known about what issues she has focused on since returning to the sprawling agency. Notably, Interior officials have yet to release her ethics agreement, which would detail any companies or projects that are off limits.
“Did she have any oversight of the environmental review process regarding Thacker Pass? It is a big question,” said Kyle Roerink, executive director of the Great Basin Water Network, a water conservation group in Nevada. “If she didn’t recuse herself, it would fly in the face of the impartial decisionmaking that Americans expect from government officials.”
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A recent Review-Journal letter to the editor mischaracterized Sen. Catherine Cortez Masto’s Southern Nevada Economic Development and Conservation Act, also known as the Clark County Lands bill. As the former executive director of the Nevada Conservation League, I wholeheartedly support this legislation, so I wanted to set the record straight.
Sen. Cortez Masto has been working on this bill for years in partnership with state and local governments, conservation groups like the NCL and local area tribes. It’s true that the Clark County lands bill would open 25,000 acres to help Las Vegas grow responsibly, while setting aside 2 million acres for conservation. It would also help create more affordable housing throughout the valley while ensuring our treasured public spaces can be preserved for generations to come.
What is not correct is that the money from these land sales would go to the federal government’s coffers. In fact, the opposite is true.
The 1998 Southern Nevada Public Lands Management Act is a landmark bill that identified specific public land for future sale and created a special account ensuring all land sale revenues would come back to Nevada. In accordance with that law 5 percent of revenue from land transfers goes to the state of Nevada for general education purposes, 10 percent goes to the Southern Nevada Water Authority for needed water infrastructure and 85 percent supports conservation and environmental mitigation projects in Southern Nevada. This legislation has provided billions to Clark County and will continue to benefit generations of Southern Nevadans. Sen. Cortez Masto’s lands bill builds upon the act’s success.
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So here’s the good news: All of the money generated from land made available for sale under Sen. Cortez Masto’s bill would be sent to the special account created by the 1998 law. Rather than going to an unaccountable federal government, the proceeds would continue to help kids in Vegas get a better education, bolster outdoor recreation and modernize Southern Nevada’s infrastructure.
I know how important it is that money generated from the sale of public land in Nevada stay in the hands of Nevadans, and so does the senator. That’s why she opposed a Republican effort last year to sell off 200,000 acres of land in Clark County and other areas of the country that would have sent those dollars directly to Washington.
Public land management in Nevada should benefit Nevadans. We should protect sacred cultural sites and beloved recreation spaces, responsibly transfer land for affordable housing when needed and ensure our state has the resources it needs to grow sustainably. I will continue working with Sen. Cortez Masto to advocate for legislation, such as the Clark County lands bill, that puts the needs of Nevadans first.
LAS VEGAS (FOX5) — Nevada’s jobless rate is holding steady, but the state is still adding jobs.
A new report from DETR shows February’s unemployment rate unchanged at 5.3 percent, with the labor force growing by nearly 3,800 people.
MORE ON FOX5: Nevada unemployment rate rises to 5.3% in January
Nevada now has about 1.6 million nonfarm jobs, up 2.2 percent over the past year and 1,500 more jobs than in January.
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“This month’s report shows a strengthening labor market,” said David Schmidt, Chief Economist. ”Compared to the report for January, the pace of job gains in the past year increased from 1.9% to 2.2%, building on what was already the fastest pace of job growth in the country. While the unemployment rate remained stable, the labor force participation rate rose to 63.7%, 1.7 percentage points higher than the national level.”
Regional employment
In Las Vegas, employment ticked up by 1,100 jobs in February, about 0.1 percent, and is up more than 25,000 jobs compared to last year.
Reno added 1,000 jobs on the month, while Carson City shed about 200 but is still slightly above where it was a year ago.