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Elaine Chao
Former Secretary of Transportation
Cabinet Official with Extensive Family Business Conflicts
Overview
Elaine Chao served as Transportation Secretary (2017-2021) and previously as Labor Secretary (2001-2009) while her family owned a major shipping company with deep ties to the Chinese government. DOT Inspector General investigations found she used her office to benefit family business interests and directed staff to assist with personal and family tasks.
Key Affiliations
Controversies & Concerns
DOT OIG found she used her position to benefit her familys shipping company, Foremost Group, which builds ships in China with Chinese state financing
Directed DOT staff to assist with personal tasks and help plan events involving her family and their business contacts
Foremost Group received favorable treatment from Chinese government including subsidized shipbuilding at state-owned yards
Failed to fully divest from Vulcan Materials Company, which had business before DOT, despite ethics agreement
Resigned one day after the January 6 attack, later claiming concern about the events but was criticized for not speaking out sooner
As Labor Secretary, OSHA enforcement actions dropped significantly and workplace safety rules were delayed or weakened
DOJ declined to pursue criminal charges despite OIG referral and documented evidence of conflicts
Husband Mitch McConnell received a $5-25 million gift from Chaos father, shipping magnate James Chao, in 2008
Related Investigations (2)
Known Associates & Connections
Mitch McConnell
Husband; Senate Republican Leader whose political and legislative power intersected with Chaos policy role
Donald Trump
President who appointed her; Chao resigned after January 6 but remained largely loyal
Sources & Documentation
3 documented sources from official records, investigations, and reports
DOT OIG: Review of Potential Misuse of Position (Chao Report)(2021)
New York Times: Chaos Family Business and Transportation Department(2019)
Senate Finance Committee: Chao Ethics Review(2020)
Personal Information
- Born
- 1953-03-26
- Birthplace
- Taipei, Taiwan
Education
- •B.A., Mount Holyoke College (1975)
- •M.B.A., Harvard Business School (1979)
Key Timeline
2001
Became Secretary of Labor under George W. Bush; served full eight years
2017-01
Confirmed as Secretary of Transportation under Trump
2019
DOT OIG opened investigation into potential misuse of office for family benefit
2020
OIG investigation expanded; staff interviews revealed pattern of personal task direction
2021-01-07
Resigned from DOT one day after January 6 Capitol attack
2021-03
DOT OIG referred findings to DOJ for potential criminal prosecution
2022-07
DOJ declined to prosecute despite OIG referral and documented evidence