New Ethics Act Bans All Federal Contracts for Temporary Government Workers, Immediately Terminating Existing Deals

The “Eliminating Looting of Our Nation by Mitigating Unethical State Kleptocracy Act of 2025”—or the ELON MUSK Act, if you like the acronym—is taking aim at potential conflicts of interest among temporary government staff. This bill establishes a hard rule: if you are a “special Government employee” (SGE), you cannot sign or benefit from any contract or agreement with the Federal Government. The goal is straightforward: to prevent individuals who advise or work temporarily for the government from using that position to secure lucrative federal business.

The Rules for Temporary Help

So, who is a “special Government employee”? The bill uses the definition already in place under section 202 of title 18 of the U.S. Code. Generally, this means experts, consultants, or advisors who work for the government for 130 days or less in any 365-day period. Think of a specialist brought in to advise the Department of Energy on a new technology, or a private sector lawyer consulting the Department of Justice on a complex case. They are temporary, part-time, and often have deep expertise and connections. This bill says that if you are in that group, you need to choose: either serve the government in that temporary role, or hold a contract with the government—you can’t do both.

Immediate Termination: A Hard Stop

Here’s where the bill really gets tough and potentially disruptive. Section 2 mandates that if this law passes, any existing contracts held by current special Government employees must be terminated immediately. There is no grace period, no phase-out, and no negotiation. For example, if a consultant is currently advising the Department of Defense (as an SGE) while their main company holds a $5 million contract to provide software services to the Department of Veterans Affairs, both the consultant and the contracting company face an abrupt end to that contract. While the intent is to clean up potential conflicts, this immediate termination clause is a high-impact measure that could financially blindside contractors and disrupt ongoing government projects that rely on those existing services.

What This Means for Everyday Life

For the average taxpayer, this is a clear win for government ethics. It closes a potential loophole where temporary advisors might use their insider knowledge and access to steer contracts toward themselves or their firms. It’s an effort to ensure that temporary government service is truly public service, not a stepping stone to personal financial gain through federal contracts. However, the lack of a transition period introduces real-world complications. If the expert advising the FAA on air traffic control is also a contractor providing a critical piece of that system, the sudden termination of that contract could cause operational headaches until a replacement can be found. This bill trades immediate, strict ethics enforcement for potential short-term operational disruption, underscoring the tough choices involved in cleaning up government contracting.