The US Justice Department has issued a warning to Elon Musk’s America PAC over its USD 1 million daily giveaways to registered voters, cautioning that the practice may breach federal law, according to US media reports. Musk, the billionaire entrepreneur, announced the daily prize contest last Saturday in Pennsylvania, a critical 'swing state' expected to play a decisive role in the 2024 presidential election between Donald Trump and Kamala Harris.

Elon Musk’s America PAC giveaway targets registered voters in seven battleground states: Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin, with the goal of registering over a million voters in these key swing states before the 2024 election.

In a letter shortly after announcing his sweepstakes, Robert Heberle, head of the DOJ’s election crimes branch, informed Elon Musk that offering monetary incentives to influence voters violates federal law. While the letter, first reported by the '24sight' newsletter, did not indicate any immediate legal action, it outlined penalties for violating US voting laws, including potential imprisonment of up to five years.

Legal experts and some Democrats suggest the America PAC giveaway may violate US law by offering money tied to voter registration. The Justice Department confirmed receiving a request from former Republican officials and officeholders to investigate Musk's financial incentives to voters.

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Musk Defends USD 1 Million Giveaway

After Pennsylvania Governor Josh Shapiro, a Democrat and former state attorney general, expressed on Sunday that he found the giveaway “deeply concerning” and deserving of legal review, Musk responded on his platform X, saying it was “concerning that he would say such a thing.”

Replying to a post suggesting he was ‘paying to register Republicans, Musk clarified that winners 'can be from any or no political party and don’t even have to vote'. However, he did not address the possible legal issue of limiting the lottery to registered voters only.

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The America PAC giveaway awards randomly selected registered voters USD 1 million each, with four winners announced so far. Some winners have appeared in promotional videos supporting Trump and voicing support for constitutional rights like free speech and gun rights. Musk has defended the giveaway’s legality, emphasizing that it is not linked to party affiliation and that winners can be from any political background or even choose not to vote.