Senators Slam Lloyd Austin Over New Consulting Firm

In a rare display of bipartisan unity, Senators Elizabeth Warren (D-Mass.) and Rick Scott (R-Fla.) have sharply criticized former Defense Secretary Lloyd Austin for launching a Washington, D.C.-based consulting firm, Clarion Strategies, just months after leaving his post in 2025. The senators accuse Austin of breaking a promise made during his 2021 confirmation hearing, where he vowed not to become a lobbyist and to uphold public trust. Their concerns highlight a broader issue known as the “revolving door,” where high-ranking government officials leverage their experience for private gain, potentially compromising national security and public confidence.

Austin, a former four-star general who served as Defense Secretary from 2021 to 2025, founded Clarion Strategies alongside other former Biden administration officials and senior Pentagon aides. The firm markets itself as a “strategic advisory” group, offering expertise in defense, diplomacy, and international security. While Austin is not technically lobbying, Warren and Scott argue that his role as an adviser is a loophole that undermines the spirit of his pledge. In a letter sent to Austin on June 30, 2025, they wrote, “Such actions raise concerns that, less than six months after leaving your role as Secretary of Defense, you have taken a trip through the revolving door and begun cashing in on your public service.”

The senators are demanding transparency. They’ve asked Austin to clarify whether he will register as a lobbyist, work for foreign entities, or retain his security clearance. They also want details on his clients, how much he’ll be paid, and whether those clients have Defense Department contracts. The senators set a deadline of July 14, 2025, for Austin to respond to their nine pointed questions. A spokesperson for Austin indicated he would likely reply, emphasizing that he would “continue to uphold the highest ethical standards” and comply with post-government restrictions.

This isn’t the first time Austin’s career moves have raised eyebrows. Before his time as Defense Secretary, he ran his own consulting firm, Austin Strategy Group, worked at an investment firm focused on defense, and served on the board of Raytheon, a major defense contractor. These ties have fueled suspicions that decisions he made at the Pentagon could benefit his new clients, prompting Warren and Scott to question whether his actions during his tenure favored defense contractors.

The issue of the revolving door isn’t unique to Austin. The senators also pointed to former Joint Chiefs of Staff Chairman Gen. Mark Milley, who transitioned to a senior adviser role at JPMorgan Chase and took faculty positions at prestigious universities while embarking on a lucrative speaking tour. “When our highest-ranking government officials and military officers treat their positions as stepping stones to personal enrichment, they corrupt the very institution they swore to defend,” Warren and Scott wrote.

This criticism comes amid broader efforts to address ethical concerns in the Pentagon. In 2023, Warren, alongside Rep. Andy Kim (D-N.J.), reintroduced the Department of Defense Ethics and Anti-Corruption Act. The proposed law would prevent major defense contractors from hiring top Pentagon officials for four years after they leave office and increase transparency around military leadership. Warren has signaled plans to push this legislation again, warning that “when former senior military officials are willing to sell their credentials to the highest bidder, our national security is put at risk.”

Austin’s tenure as Defense Secretary was not without controversy. A 2025 Defense Department Inspector General report found that he violated the Federal Vacancies Reform Act four times by failing to notify the White House and Congress when he was incapacitated. These missteps, combined with his rapid move to private consulting, have intensified scrutiny of his post-government career.

The bipartisan outrage from Warren and Scott underscores a growing concern about the influence of former officials in the private sector. As the July 14 deadline approaches, Austin’s response could either ease these concerns or fuel further debate about ethics and accountability in government service.