"Karen Budd-Falen, the No. 3 at the Interior Department, didn’t disclose a $3.5 million water-rights contract between her husband and the developers of a Nevada mine, records show."

"A high-ranking official in the Interior Department is drawing scrutiny from ethics experts because she failed to disclose her family’s financial interest in the nation’s largest lithium mine that had been approved by her agency, according to state and federal records.

In 2018 Frank Falen sold water from a family ranch in northern Nevada to Lithium Nevada Corp., a subsidiary of Lithium Americas, for $3.5 million. The company was planning a $2.2 billion lithium mine nearby called Thacker Pass, and lithium mining requires significant amounts of water.

The mine needed a permit from the Interior Department, where Mr. Falen’s wife, Karen Budd-Falen, worked as the deputy solicitor responsible for wildlife from 2018 until 2021. She returned to the agency last year and is now the associate deputy secretary, the third highest-ranking position.

Mr. Falen’s sale of his water rights also depended on the mine getting a permit from the Interior Department. Without it, Lithium Nevada Corp. could have terminated its deal with him."

Lisa Friedman reports for the New York Times January 3, 2026. [2]