Justice Department warns Elon Musk's America PAC over $1 million daily giveaway

The Justice Department has issued a warning to Elon Musk ’s super PAC, America PAC , over its $1 million daily giveaway in key battleground states , citing concerns that it may violate federal election laws , reported CNN.

The letter, which was reportedly sent by the department’s Public Integrity Section, has raised doubts about whether Musk’s initiative violates laws against compensating individuals for voter registration .

This section of the Justice Department oversees election-related investigations, and the move follows increasing pressure from legal experts and former government officials to investigate the PAC’s operations.

The America PAC giveaway needs participants to be registered voters in one of seven key battleground states—Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin. The initiative aims to register over a million voters in these swing states ahead of the 2024 election .

Participants must also sign a petition in support of the First and Second Amendments to qualify.

Announcing the sweepstakes at a Trump campaign event in Harrisburg, Pennsylvania, Musk stated, “We want to try to get over a million, maybe 2 million voters in the battleground states to sign the petition in support of the First and Second Amendment,” on Saturday.

“We are going to be awarding $1 million randomly to people who have signed the petition, every day, from now until the election”, he added.

However, legal experts are divided over whether this scheme breaks the law. Some believe the contest may fall into a legal "grey area" but is not definitively illegal. Matthew Sanderson, an election law expert who has worked with Republicans, commented, "I can see why people argue this violates the law, but I don’t think it does", reported NBC News.

Winners of the giveaway, who are randomly selected, receive $1 million, with the PAC already naming four winners. Many of them have appeared in promotional videos endorsing Trump and expressing support for constitutional rights, especially free speech and gun rights.

Musk has defended the legality of the giveaway, stating that the lottery is not tied to party affiliation, and winners can come from "any or no political party and one doesn’t even have to vote."

However, federal law clearly prohibits financial incentives related to voter registration. Critics argue that despite Musk’s reassurances, the terms of the contest may still conflict with these regulations.

After receiving the Justice Department’s letter, America PAC modified its messaging, stating that winners would now be rewarded as "spokespersons" for the PAC’s petition.

However, experts noted that the core structure of the contest remains unchanged, as only registered voters in specific states are eligible to participate.