DOJ Moves to Dismiss Immigration Case Against SpaceX

SpaceX's mega rocket Starship launches for a test flight from Starbase in Boca Chica, Texas, on Jan. 16, 2025. Eric Gay/AP Photo

The U.S. Department of Justice (DOJ) filed a motion Thursday indicating it wants to drop a lawsuit accusing SpaceX of hiring discrimination against refugees.

The lawsuit filed by the DOJ in August 2023 alleged that SpaceX, owned by Elon Musk, violated the Immigration and Nationality Act by refusing to hire people with asylum or refugee status.

The aerospace company countersued the DOJ later that year on constitutional grounds. Last month, a federal judge in Texas granted the DOJ’s request to stay the lawsuit for 45 days, saying that the department lacks the authority to pursue its claims against SpaceX.

In a court filing on Thursday, the DOJ requested that the court lift the stay on the lawsuit so it could proceed with filing a notice of dismissal. It did not provide a reason for the possible dismissal.

Both the DOJ and SpaceX did not respond to a request for comment by publication time.

In its 2023 lawsuit, the DOJ alleged that between 2018 and 2022, SpaceX discouraged asylees and refugees from applying for jobs and failed to fairly consider their applications due to their citizenship status. The DOJ accused SpaceX of falsely asserting in job postings and public statements that export control laws hindered the company from hiring people without U.S. citizenship.

“Under these laws, companies like SpaceX can hire asylees and refugees for the same positions they would hire U.S. citizens and lawful permanent residents,” it stated. “And once hired, asylees and refugees can access export-controlled information and materials without additional government approval, just like U.S. citizens and lawful permanent residents.”

The DOJ also stated that the Immigration and Nationality Act barred companies from discriminating against refugees and people granted asylum unless legally mandated to do so.

SpaceX, in its countersuit, denied any wrongdoing, saying that the company has always strived to “hire the very best candidates for every job regardless of their citizenship status.”

The company argued that due to the sensitive nature of its work—such as manufacturing technologies with military applications—it is subject to legal mandates under export control laws, including the International Traffic in Arms Regulations (ITAR), which limit whom it can employ.

“These export control laws and regulations are critical to our national security. Moreover, violating them can have severe consequences for a company like SpaceX,” it stated, noting that failing to comply with the regulations could result in hefty fines and criminal penalties.

On Aug. 25, 2023, Musk stated on the social media platform X that his company had been told that hiring anyone who is not a permanent U.S. resident would violate ITAR.

“We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes,” he stated.

Musk was appointed by President Donald Trump earlier this year to lead the Department of Government Efficiency (DOGE), which has been tasked with reviewing federal agencies for potential downsizing and cost reductions.

Trump had previously said that Musk would not be able to take any action without approval from the White House, and the government “won’t let him go near it” if there is a conflict of interest.

DOGE’s work is expected to be completed by July 4, 2026, according to Trump’s Jan. 20 executive order.

Reuters contributed to this report.