The White House has rejected Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO Elon Musk‘s offer to cover the salaries of Transportation Security Administration (TSA) employees amid the ongoing partial government shutdown.

White House Rejects Offer

In an official statement to CBS News on Wednesday, White House Spokesperson Abigail Jackson confirmed that the administration was formally rejecting the offer. “We greatly appreciate Elon’s generous offer,” she said, but then outlined that Musk’s “involvement with federal government contracts” would pose legal challenges.

According to the 18 U.S. Code § 209, federal employees are barred from receiving their salaries or any other compensation for their services offered within the scope of their jobs from sources other than the U.S. government. Violations of this code would result in prosecution under 18 U.S. Code § 216.

Jackson then shared that the fastest way to get TSA employees paid was “for Democrats to fund the Department of Homeland Security.”

Trump And Musk’s History

Trump and Musk have had deep ties, with the SpaceX CEO backing the President’s campaign in the run-up to the 2024 Presidential Election, where Musk donated over a quarter of a billion dollars to the Trump campaign. The billionaire was also part of the Department of Government Efficiency (DOGE), an organization working with the administration to cut federal spending.

However, relations between the pair soured amid unfavorable policies unveiled by Trump, which directly affected Musk’s businesses like Tesla. Musk eventually had a public falling-out with Trump and left the administration and DOGE. Since then, relations between the pair have improved and Musk remains an ally of the Trump administration.

What Does Polymarket Say?

Bettors on the prediction market platform Polymarket still think that there is a 1% chance that the billionaire would pay the salaries of TSA employees, down by 47%.

The trade, which kicked off after Musk’s offer on the social media platform X, ends on April 14. At the beginning of the trade, over 47% of the bettors had bet on Musk covering TSA salaries.

Source: Polymarket

TSA Chaos

Long lines and delays have wreaked havoc across airports in the U.S., with United Airlines Holdings Inc. (NASDAQ:UAL) CEO Scott Kirby urging lawmakers to reach an agreement and bring an end to the shutdown. “It's just ridiculous to me that it has to get bad before they can get a deal done,” Kirby said.

Meanwhile, President Donald Trump‘s administration deployed Immigration and Customs Enforcement (ICE) agents at security checkpoints across airports amid a shortage of TSA staff, who missed their paychecks. The deployment has been criticized by lawmakers, including Sen. Adam Schiff (D-CA).

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Photo courtesy: Shutterstock