Congressman buys Musk’s SpaceX stock after IPO

3 days later space x When this blockbuster made its public debut, Congressman William Timmons bought $100,000 in stock in the rocket company.

The South Carolina Republican chairs the House Oversight Committee on Military and Foreign Affairs and is a member of the Financial Services Subcommittee that deals with artificial intelligence, two divisions at the heart of Elon Musk’s new public empire.

He wasn’t the only lawmaker to agree.

Within six days of the June 12 initial public offering, at least six members of Congress or their immediate family members bought SpaceX stock totaling between about $83,000 and $245,000, according to a CNBC tally of amounts reported in House Financial Disclosures (transactions are reported within a range). Timmons was joined by Reps. John McGuire (Virginia), Dan Meuser (R-Pennsylvania), Gil Cisneros (California), John James (R-Michigan), and Jared Moskowitz (Florida).

This total reflects the sum of the minimum and maximum values ​​reported for the six transactions. Timmons ranges from $50,001 to $100,000. McGuire, Moskowitz and Cisneros, $1,001 to $15,000; James and Muser from $15,001 to $50,000.

That number could rise even further. Members of Congress must report stock trades of more than $1,000 within 30 days of learning of them and within 45 days of the trade. Monday was the deadline for reporting purchases on the day of the IPO. Trading for the next six days will take place by August 2nd.

Five of these members serve on committees that oversee aspects of SpaceX’s operations (defense, satellite communications, AI, etc.) and securities markets. The company relies heavily on federal approval and receives billions of dollars in government contracts, but its spending is directed by the very lawmakers who buy the company’s stock.

There is no evidence that the members traded on nonpublic information, violated Congressional trading rules, or used their offices to benefit SpaceX. The transaction is legal. Three of the documents were created by spouses and children, and some lawmakers say outside advisers are managing their portfolios. Members of Congress are allowed to own and purchase individual stocks, provided they disclose their purchases and holdings, although efforts have been made to limit this practice.

Still, ethics experts and some lawmakers say the holdings can give the impression that a lawmaker’s official duties overlap with the financial interests of his or her household. And with other highly anticipated IPOs like OpenAI and Anthropic on the horizon, they could be a sign of things to come.

When asked about the SpaceX deal, Rep. Pramila Jayapal, D-Wash., told CNBC: “Member states are making decisions, buying and selling as if they were on Wall Street. And they’re not doing it in the interest of their constituents.” “They’re doing it to line their own pockets.”

Kedrick Payne, director of ethics at the Campaign Legal Center, a nonpartisan nonprofit, said the SpaceX acquisition shows that Congressional stock trading opens the door to ethical conflicts that are “much bigger than insider trading.”

“A potential conflict of interest exists if the commission’s duties could overlap with the company’s work as a government contractor,” Payne said.

Besides Timmons, Cisneros is the only other member of the group confirmed by CNBC to have purchased stock in his own name. A disclosure statement he filed with the U.S. House of Representatives on July 2 shows that he purchased between $1,001 and $15,000 of stock on June 18, along with dozens of other stock acquisitions.

Cisneros serves on the House Armed Services Committee, which oversees contracts between the Department of Defense and the Space Force.

Cisneros said in a statement to CNBC earlier this month that he does not manage the “day-to-day trading” of his investment portfolio. His office did not immediately respond to a request for comment about the potential conflict of interest.

Other purchases identified by CNBC involved spouses and dependent children of Rep. McGuire and Rep. James, including their wives. Members of Congress must report stock holdings and purchases by themselves as well as by their spouses and dependent children.

Mr. James serves on the House Energy and Commerce Committee, where he plays a key regulatory role in the development of energy grids and AI data centers. SpaceXAI, a subsidiary of SpaceX, is a leading data center construction company nationwide.

James’ wife bought SpaceX stock on June 12 for between $15,001 and $50,000, according to financial disclosures filed this month.

“James’ children are excited about space exploration, and Liz purchased the stock for them through her brokerage, just as any other member of the public would welcome,” a spokesperson for James said in an emailed statement.

McGuire, who serves on the House Armed Services Committee as well as the House Oversight and Government Reform subcommittee on military, foreign affairs and financial services, disclosed on June 15 that his wife had invested between $1,001 and $15,000 in the company.

Meanwhile, Mr. Muser serves on the House Financial Services Committee, which has jurisdiction over securities and exchanges. Mueser’s dependent children purchased SpaceX stock on June 15 for between $15,001 and $50,000.

Spokespeople for Timmons, McGuire and Muser did not respond to requests for comment.

Payne said the fact that in some cases the purchases were made by spouses or dependent children does not alleviate potential concerns about conflicts of interest.

“A core principle of financial disclosure forms from their inception decades ago is that the financial interests of spouses and dependent children are exactly the same as the financial interests of members,” Payne said. “That’s because members are in much closer proximity to their spouses and dependent children and can control shared ownership (of assets).”

Moskowitz, who bought the stock on June 12, serves on the House Judiciary and Foreign Affairs committees, neither of which have direct authority over SpaceX. But members of Congress, regardless of their committee assignments, regularly vote on bills that could benefit the company and its subsidiaries, such as the defense budget.

Although Moskowitz is not a member of the jurisdictional committee, Payne said the deal could still raise concerns for voters concerned about conflicts of interest.

“The public is not going to parse the details of the commission’s portfolio or SpaceX’s operations,” he said. “Voters are likely to see companies that are government contractors, and they know that Congress can act on confidential information that affects contracts and drives markets. The standard used to be not whether the conflict could be proven, but whether there was reasonable knowledge of the conflict.”

A spokesperson for Mr. Moskowitz did not respond to a request for comment.

The six IPO buyers include another prominent lawmaker whose family was already involved in SpaceX.

Rep. Lisa McClain (R-Mich.), the fourth-ranking Republican in the House, disclosed in January that her husband purchased between $100,001 and $250,000 in undisclosed stock in xAI on Dec. 15. The investment was tied to SpaceX in February when Musk merged xAI into the rocket company.

There is no evidence that McClain or her husband traded on nonpublic information. A spokesperson for the House Republican Conference said in June that McClain’s investments were public record and were made in accordance with House rules and applicable law.

According to SpaceX’s IPO prospectus, about one-fifth of the company’s revenue in 2025 was generated by federal agencies. The company also described itself as the government’s primary launch provider for launching satellites, cargo and crew. The prospectus disclosed contracts with NASA, the Department of Defense and the intelligence community, and warned investors that changes in federal funding could have a material impact on the company’s operations.

SpaceX did not respond to multiple requests for comment.

Lawmakers gave their blessing during a volatile first month. The stock was priced at $135, opening at $150, reaching a high of $201.80 at June’s close, and falling to $113.46 at Monday’s close. This is about 16% below the IPO price and about 44% below the all-time high.

Congressional disclosures report a range of values ​​rather than the exact number of shares or purchase price, making it impossible to calculate the exact gains or losses for members of Congress.

“We won’t know the full extent of how much money the lawmakers made or didn’t make until years later,” said Dan Weiskopf of Tidal Financial, which runs an ETF based on lawmakers’ trades. “Members can hold the stock and ride it out, but being able to influence its value becomes a gray area.”

SpaceX’s influence on Capitol Hill extends to its employee-funded PAC, which funneled $1.9 million into federal elections from January 2025 to June 2026, according to a CNBC analysis of Federal Election Commission records.

The PAC donated $127,500 in June alone, 94% of which went to Republican candidates or Republican-aligned committees, according to the PAC’s monthly disclosures. This marks a sharp shift toward Republicans compared to the 2024 election cycle, when donations were more evenly divided.

The PAC is funded by SpaceX employees and executives, not SpaceX’s finances, and is separate from Musk’s personal political activities.

SpaceX’s disclosure coincided with the House passing a bill that would restrict stock trading by members of Congress and their families.

The Insider Trading Stop Act, sponsored by House Administration Committee Chairman Brian Still (R-Wis.), prohibits new purchases of individual stocks. However, members will be able to retain their existing stock holdings, reinvest dividends, and sell their shares with prior notice. The House approved the bill Wednesday by a vote of 232-198, and it now moves to the Senate, where its fate is uncertain.

Supporters see the bill as a pragmatic first step after years of legislative gridlock, arguing it would stop day trading without forcing lawmakers to sell off existing assets.

Democratic critics argued that the bill preserves the very contradictions highlighted in the SpaceX deal. They say allowing lawmakers to hold and ultimately sell their own company stocks allows them to craft policies that could benefit their portfolios.

“I’m going to support a stock trading ban, but that’s not what he’s proposing,” Rep. Joe Morrell of New York, the ranking Democrat on the House Administration Committee, told CNBC. The bill is “so full of holes that it would make Swiss cheese blush.”