Top Interior Official Makes Policy Decisions Benefiting Her Family’s Ranching Business

NEWS & RESEARCH

Department of Interior Associate Deputy Secretary Karen Budd-Falen is facing calls for an ethics investigation after a video surfaced of her acknowledging her involvement in grazing policy changes that directly benefit her family's ranching business. While the Interior Department maintains that she has complied with all ethical guidelines, watchdog groups argue that her participation in relaxing grazing limits and categorical exclusions—which apply to her own husband’s land—constitutes a significant conflict of interest. Although a broad ethics waiver was issued in March 2026 to allow her participation in these policies, experts note it does not retroactively cover her first year in office. This was not the first conflict of interest issue facing Budd-Falen: She failed to disclose her family’s financial interest in the nation’s largest lithium mine that had been approved by her agency.

SOURCES:Washington Post | Center for Western Priorities | New York Times

ANALYSIS & OPINION

In a significant reversal of previous ethics restrictions, Interior granted Budd-Falen a conflict of interest waiver on March 11, 2026, allowing her to oversee federal grazing policy despite her family’s extensive financial interests in the industry. While she was strictly prohibited from participating in grazing matters during the first Trump administration, ethics officials now argue that her recusal had become "overly burdensome" and that her expertise is "critical" to the agency's mission. The waiver was issued the same day reporters inquired about her recent involvement in high-profile grazing disputes at Point Reyes National Seashore and major overhauls of the National Environmental Policy Act (NEPA) that favor ranching interests.

SOURCES:Public Domain | New York Times

HOW TO FIX IT

Federal action:

• Conduct an ethics investigation into Budd-Falen’s possible conflicts of interest.

• Consider good government coalition proposals to strengthen ethics in government.