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The U.S. Department of Justice (DOJ) has dropped its case against SpaceX, which accused the company of refusing to hire certain immigrants. The lawsuit, filed in August 2023, alleged that SpaceX discouraged asylum seekers and refugees from applying for jobs between 2018 and 2022.
In a court filing in Brownsville, Texas, government lawyers requested permission to dismiss the case with prejudice, meaning it cannot be refiled. The decision follows a recent indication that the DOJ might step away from the case, originally brought during President Joe Biden’s administration.
SpaceX has denied any wrongdoing, arguing that federal export control laws require it to hire only U.S. citizens and legal permanent residents. The company also filed a lawsuit challenging the DOJ’s administrative complaint, stating that its in-house judges were improperly appointed. A judge had temporarily blocked the DOJ from proceeding with the case while both sides presented arguments.
Elon Musk, SpaceX’s CEO, has been a vocal critic of federal agency powers. He is currently leading a commission under President Donald Trump’s administration to identify government waste. Both Trump and Musk have opposed the authority of agencies like the DOJ that conduct internal enforcement proceedings.
Neither the DOJ nor SpaceX has issued an official comment on the dismissal.
The lawsuit’s end marks a significant development in the ongoing debate over immigration policies, employment laws, and government regulations affecting the private sector. SpaceX maintains that its hiring policies comply with U.S. laws governing national security and export controls.
With the case dismissed, SpaceX avoids potential penalties, and the decision reinforces ongoing scrutiny of federal regulatory power in business operations.
