The U.S. Department of Justice has issued a warning to Elon Musk's America PAC regarding the legality of its $1 million daily sweepstakes targeting registered voters in swing states, according to sources familiar with the matter.

The billionaire's latest foray into political activism, announced during a Trump campaign event in Harrisburg, Pennsylvania, has drawn scrutiny from federal authorities and election law experts. Musk declared his intention to attract "over a million, maybe 2 million voters in the battleground states to sign the petition in support of the First and Second Amendment," offering daily $1 million prizes to randomly selected participants.

The Justice Department's public integrity section, responsible for investigating election-related violations, sent a letter to Musk's political action committee expressing concerns about potential legal violations. Federal law explicitly prohibits paying individuals to register to vote, raising questions about the sweepstakes' structure, which requires participants to be registered voters in specific battleground states.

In response to mounting criticism, including from Pennsylvania Governor Josh Shapiro, who called the giveaway "deeply concerning," Musk's super PAC attempted to reframe the campaign. By Sunday, the organization began describing winners as being "selected to earn $1M as a spokesperson for America PAC," sharing pro-Trump testimonial videos featuring recipients.

However, election law experts note that the official terms of entry remained unchanged on the super PAC's website. Participants must still be "registered voters of Arizona, Michigan, Georgia, Nevada, North Carolina, Pennsylvania, or Wisconsin" to be eligible for the prize, potentially conflicting with federal election laws.

Musk's unprecedented level of involvement in Trump's campaign extends beyond financial support. The Tesla CEO and X owner has contributed at least $75 million to America PAC, according to federal disclosures, while actively campaigning in person and using his social media platform to influence political discourse among his 202 million followers.

The timing and impact of the Justice Department's letter remain unclear, as neither Musk, his super PAC, nor various representatives have responded to requests for comment. The Justice Department has also declined to comment on the matter.

Political analysts suggest Musk's aggressive campaign involvement might be motivated by his long-standing opposition to government regulations, viewing a potential second Trump presidency as favorable to his business interests. His approach marks a departure from traditional wealthy donors' typically more discreet political engagement.

This is not Musk's first encounter with regulatory challenges. In 2018, he and Tesla paid $40 million in fines over controversial tweets about taking Tesla public, though he later claimed the penalties were "worth it."

The controversy highlights the complex intersection of wealth, political influence, and election law in contemporary American politics. As the November 5 election approaches, the outcome of this federal scrutiny could have significant implications for future campaign financing and voter engagement strategies.