Democratic lawmakers are investigating a $1.6 billion deal involving USA Rare Earth Inc. and Cantor Fitzgerald, which is suspected of creating conflicts of interest due to ties to Commerce Secretary Howard Lutnick. The letter from Senator Elizabeth Warren and other Democrats highlights concerns about transparency and potential breaches of federal conflict of interest laws. The deal, which received government backing, raised questions about the involvement of Lutnick and his family. Lawmakers are seeking details regarding Cantor Fitzgerald's interactions with the Commerce Department and have also contacted USA Rare Earth's CEO.

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Democrats Probe Cantor Fitzgerald Ties in USA Rare Earth Deal

Ari Natter

Tue, July 7, 2026 at 11:13 AM EDT2 min read

USAR \ -8.11%

(Bloomberg) -- Democratic lawmakers are investigating whether a $1.6 billion deal involving critical minerals company USA Rare Earth Inc. created a conflict of interest by benefiting Cantor Fitzgerald, the financial services firm formerly led by Commerce Secretary Howard Lutnick.

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The deal, which was finalized last month, likely benefited two of Lutnick's adult sons, who now operate the firm, which acted as a placement agent for the deal, according to the letter, which was sent to Cantor Fitzgerald Chairman Brandon Lutnick.

"It is imperative your company provide complete transparency about the substantive conflict of interest concerns raised by the circumstances of this investment," the letter said, which was dated July 6 and led by Senator Elizabeth Warren, a Massachusetts Democrat. "Secretary Lutnick appears to have played a part in facilitating USAR's deal with Commerce."

Under terms of the deal first announced in January, the Commerce Department offered funding and loans to the Stillwater, Oklahoma-based company and the Trump administration agreed to take a direct 10% stake in the organization, according to the letter.

The lawmakers added the terms of the deal "raise serious questions about Secretary Lutnick's exposure to federal conflicts of interest and bribery laws."

USA Rare Earth has transformed from a relatively small player in the Western critical minerals industry into a multibillion-dollar acquirer. Little more than a year ago, its market value resembled that of junior exploration companies. After appointing a new chief executive and meeting with Lutnick and other Trump administration officials, it secured a government pledge in January. Since then, it has bought a rare earth mine in Brazil and acquired stakes in, or outright ownership of, processing businesses in the UK and France.

The letter, which was also signed by Democrats Senator Ron Wyden of Oregon, Senator Chris Van Hollen of Maryland and California Representative Zoe Lofgren, seeks details about meetings Cantor Fitzgerald may have had with Commerce Department representatives and other matters. The lawmakers also sent a letter to USA Rare Earth's Chief Executive Officer Barbara Humpton.

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Cantor Fitzgerald and the Commerce Department and USA Rare Earths didn't immediately respond to a request for comment.

--With assistance from Joe Deaux.