Washington, Feb 27 (NationPress) In a recent development, Democratic Senators have raised concerns with US Commerce Secretary Howard Lutnick regarding a monumental $1.6 billion deal involving rare-earth minerals. They caution that this agreement could potentially profit his close family and his previous firm, Cantor Fitzgerald.

In a letter dated February 25, Senators Elizabeth Warren, Ron Wyden, and Chris Van Hollen expressed their worries that the arrangement facilitated by the Department of Commerce with USA Rare Earth, Inc. (USAR) “could enrich your immediate family.”

“This is just one of many actions you have taken as Secretary of Commerce that could financially benefit your family and former company,” the senators stated.

Last month, the Department publicized a tentative deal worth as much as $1.6 billion with USAR. The terms include “up to $277 million in direct funding and up to $1.3 billion in loans,” along with acquiring 16.1 million shares, equating to roughly a 10 percent stake in the company.

On the same day, USAR announced it had successfully raised $1.5 billion in private investments, with Cantor Fitzgerald acting as the “lead placement agent” in this transaction. The lawmakers highlighted that “Cantor served as a compensated broker for a company whose finances were significantly enhanced by a $1.6 billion public funding agreement from your Department.”

Previously, Lutnick owned and managed Cantor for several years, and his ethics agreement mandated that he divest his interest. He passed on his stake to his adult sons, who now oversee the firm.

Ethics professionals referenced in the letter indicate that the “fact that the (USAR) deal is facilitated by the Wall Street firm once led by the commerce secretary — and now managed by his sons — raises concerns that the public interest is being overlooked in favor of the profit motives of Trump associates.”

The senators mentioned that Lutnick “publicly supported and was reportedly directly involved in” the USAR deal. They referred to accounts indicating he met with USAR’s CEO in November 2025, inquiring about what would be necessary for USA Rare Earth to expedite its growth and scale.

Barbara Humpton, USAR’s CEO, mentioned that the “first condition was that we were asked to secure private funding (from Commerce).” Ultimately, the company raised $1.5 billion in private investment as part of a public equity funding effort alongside federal backing.

The senators also pointed out SEC filings that reveal billionaire allies of Trump, including Steve Schwarzman, Ken Griffin, and Steven A. Cohen, acquired discounted shares of USAR in the private fundraising effort facilitated by Cantor.

“If they possessed inside information regarding the Commerce Department, it could violate federal ethics regulations — raising concerns about corruption linked to financial incentives for wealthy supporters of President Trump and his administration,” the senators wrote.

They have asked Lutnick to answer a set of questions by March 11, which includes details about his involvement in the deal, any guidance he received from ethics officials, and whether he adhered to federal recusal requirements.

Rare earth minerals are essential for defense systems, semiconductors, and electric vehicles. Notably, China dominates approximately 60 percent of global rare earth mining output and around 91 percent of production, highlighting US concerns regarding supply chain vulnerabilities.

The Trump administration has prioritized domestic sourcing of critical minerals as a strategic imperative amid escalating competition with China. Initiatives under the CHIPS and Science Act have been implemented to bolster US manufacturing capabilities and decrease dependence on foreign supply chains.