Latest news with #MuskWatch
Yahoo
4 days ago
- Business
- Yahoo
Elon Musk's brain implant startup Neuralink called itself a 'small disadvantaged business' to the federal government
Elon Musk's Neuralink may have been recently valued at a reported $9 billion, but that did not stop the company from claiming a special designation as a 'small disadvantaged business' with the government. The self-designation is meant for companies majority-owned by someone belonging to a socially or economically disadvantaged group and can only be granted to business owners with a net worth of less than $850,000, excluding home equity. Despite being owned by the richest man in the world, Elon Musk's brain implant startup Neuralink identified itself as a 'small disadvantaged business' with the federal government. While Musk's DOGE was busy purging government diversity, equity, and inclusion (DEI) programs, his company was claiming a special designation meant for companies that are 'unconditionally and directly' majority-owned by someone belonging to a socially or economically disadvantaged group, MuskWatch first reported. The designation also requires that the owners of such companies be 'economically disadvantaged individuals.' The company's profile on the Small Business Administration website currently lists Neuralink as a 'Self-Certified Small Disadvantaged Business.' Neuralink and the Small Business Administration did not immediately respond to Fortune's request for comment. The SBA defines 'economically disadvantaged individuals' as 'socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.' Any person with a net worth of more than $850,000, not including their home equity, also does not qualify. Although as a private company, Neuralink's ownership structure is not publicly available, Musk's $364 billion net worth would clearly disqualify Neuralink from consideration for the SDB designation. In June, Neuralink also announced $650 million in fresh funding that reportedly valued the company at $9 billion, according to Semafor. The federal government has since 1988 granted contracts to small disadvantaged businesses in an effort to spur job creation and reduce historical inequities. Under the Business Opportunity Development Reform Act of 1988, Congress declared 'not less than 5 percent of the total value of all prime contract and subcontract awards for each fiscal year,' be awarded to small disadvantaged businesses. There is no evidence Neuralink received any disbursements from the federal government under this designation. Still, the Justice Department has previously sought to prosecute those who claimed false special designations with the government. In 2023, the owner of an investment properties company falsely claimed to be a 'service-disabled veteran owned small business' in SAM, the official website for companies conducting business with the federal government. The owner, who never served in the military, used the designation to claim two Department of Defense contracts worth more than $1.9 million. He later pleaded guilty to wire fraud and was forced to pay $72,000 in restitution and a $10,000 fine, and serve 15 months in prison. This story was originally featured on
Yahoo
11-06-2025
- Business
- Yahoo
DOGE Says Eliminating These Laws Will Save Americans Money — 2 Ways It Doesn't
DOGE, or the Department of Government Efficiency, was meant to help save money for Americans. But the reality is different. According to the DOGE website, their efforts to slash costs such as eliminating certain types of federal spending and reversing some regulations, have resulted in around $180 billion in savings. As a result of these savings, DOGE claims that it has saved taxpayers $1,118.01 each. Find Out: Try This: However, according to many media outlets like Reuters and third-party analyses like 'Musk Watch,' the savings are really only around one tenth of that. What's more, regulations that have been or could be eliminated will end up costing Americans more in the long run. So what are the regulations? The Consumer Financial Protection Bureau's (CFPB) rule capping credit card late fees to $8. The CFPB predicted that there would have been average savings of $220 per year for around 45 million Americans who were on the hook for these fees. The New York Times reports that DOGE claims reversing this rule will save Americans $9.5 billion. Considering the average credit card late fee is $32, American consumers may not truly benefit from this law reversal. It's unclear how DOGE came up with these savings, since credit card companies may not lower their late fees anytime soon. Learn More: According to the DOGE leaderboard on its website, there was a combined $4 billion in savings for Americans by reversing 16 efficiency standards on appliances by the Energy Department. Appliance efficiency standards are there to help American households save on utility bills. Estimates by government scientists show that efficiency standards for appliances saved around $576 for the average American household in 2025 when it came to gas and water bills. Reversing these standards could mean that costs that could go down over time for Americans will be no more. There are even reports that appliance manufacturers don't want these reversal of standards as it'll also cost them more in the long run. For example, if states end up mandating their own standards, there could be conflicting ones. As such, it could mean that manufacturers will have to make different appliances to meet different state regulations, costing them more in time and overhead costs. Some of the appliances affected by these potential reversals are microwaves and commercial washing machines. When the rule for efficiency standards for microwaves was enacted back in 2023, the Energy Department estimated that it would result in $620 million per year in savings for consumers. Apparently it would now save Americans $64.9 if the rule were reversed. As for commercial washers like the ones you use in apartment buildings and laundromats, the rollback of regulations could supposedly save Americans $1.9 billion. However, experts say that number seems impossible, considering the whole market for these types of appliances is only around $6.5 billion. So are there savings? Maybe. Government spending may be down because of DOGE, but it's hard to tell if these changes will result in savings for you, now or in the future. In the meantime, continue to practice discernment in your spending habits so that if there are increased costs, you're ready for them. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on DOGE Says Eliminating These Laws Will Save Americans Money — 2 Ways It Doesn't Sign in to access your portfolio
Bloomberg
20-03-2025
- Business
- Bloomberg
Keeping Tabs on Musk as He Breaks Things
On a special episode of Elon, Inc., Musk Watch author Judd Legum explains how he sifts through the flood of news made by Trump's right-hand man. Listen and subscribe to Elon, Inc. on Apple, Spotify, iHeart and the Bloomberg Terminal.
