SpaceX expansion in Texas spurs concerns over political ties, lobbying

Musk, SpaceX lobbyists, and affiliated businesses have contributed $500,000 to campaigns of two dozen officials

Elon Musk's SpaceX has rapidly expanded its presence in Brownsville, South Texas over thse past five years, driving economic growth through job creation and increased investments but the company's aggressive political lobbying has sparked concerns about conflicts of interest and unchecked development.

Since 2014, Musk, SpaceX lobbyists, and affiliated businesses have contributed more than $500,000 to the campaigns of two dozen officials in the region, securing support for favorable legislation and subsidies.

While this has enabled swift development of the Starbase facility, some locals argue that political ties have come at the expense of transparency, unchecked growth and the wellbeing of long-time residents, who face rising property values and disrupted lives.

Celia Johnson, a local property owner near SpaceX’s Starbase facility, found her once quiet retirement disrupted by the company’s expansion.

SpaceX’s development raised property values and taxes, forcing Johnson to stop renting her beachfront properties to vacationers.

Despite appealing to local officials for relief, she received little support. One such official, former state legislator Alex Dominguez, expressed sympathy but chose not to intervene.

What Johnson didn’t know at the time was that Dominguez owned land in the same area and benefited from SpaceX’s rise, selling his property to the company for $330,000 after leaving office. Dominguez is not alone.

SpaceX has established close ties with numerous local and state officials, many of whom have profited from the company's presence but this has also generated conflict of interests between officials.

These relationships, critics argue, have fostered a lack of accountability, allowing SpaceX to expand rapidly with little oversight. Johnson, frustrated by the changes, claims, “The politicians here are in SpaceX’s pocket.”

The political influence of SpaceX has also shaped the region's legislative landscape.

In 2013, local lawmakers passed bills to shield SpaceX from lawsuits and allow road closures for rocket launches, facilitating the company's activities.

Many of these lawmakers received financial contributions from Musk and SpaceX affiliates. Dominguez, for example, received $6,000 in campaign donations from SpaceX lobbyists over the years, but maintains his decisions as a lawmaker were not influenced by the company.

Despite the controversy, SpaceX has undeniably had a significant economic impact on the region.

The company has created over 2,100 jobs and claims its operations contribute $6.5 billion annually to the local economy. State and county subsidies, totaling $15 million, along with a 10-year property tax exemption, have played a key role in enabling SpaceX’s growth.

While some local leaders, like Cameron County’s top official Eddie Treviño Jr., support the company's presence, others express concerns about the transparency and long-term effects of SpaceX’s dominance in the region.

Critics argue that the region’s high poverty and unemployment rates make it vulnerable to corporate interests, potentially sidelining the needs of local residents in favor of big business.

As SpaceX continues to expand and Musk deepens his ties to Texas politics, the tension between growth and accountability in South Texas is likely to persist.

Though the company has transformed the area, questions remain about the price paid by locals like Celia Johnson, who have seen their way of life upended by unchecked development.