The Trump administration has launched a sweeping review of government contracts held by Elon Musk’s SpaceX, following a public fallout between US President Donald Trump. As first reported by The Wall Street Journal, the White House sought to identify “potential waste” in deals worth billions, including those tied to the Department of Defense and NASA.
However, early findings revealed that most of the contracts are too critical to cancel. Both the Pentagon and NASA concluded that SpaceX’s work is indispensable to national security and human spaceflight.
Trump-Musk dispute
The rift began in early June, when Musk publicly criticised Trump’s tax-and-spending policies and electric vehicle stance. Trump fired back on his social media platform, Truth Social, branding Musk as “overly reliant” on federal subsidies. He went further, accusing Musk of hypocrisy over the EV mandate and suggesting Tesla and SpaceX would collapse without government aid.
“Elon may get more subsidy than any human being in history,” Trump wrote. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
Shortly after Trump’s posts, a high-level request from Josh Gruenbaum, Federal Acquisition Commissioner, was circulated to multiple agencies, including NASA and the Department of Defense. Agencies were asked to submit detailed “scorecards” of SpaceX’s contracts evaluating costs, performance, and whether competitors could do the same work.
SpaceX projects
Despite political pressure, agency reviews made one point abundantly clear that SpaceX’s capabilities are unmatched. In fact, Gwynne Shotwell, SpaceX President, held meetings with White House officials during the process, underscoring the gravity of the review.
From launching GPS satellites for the US Space Force to ferrying astronauts aboard its Crew Dragon capsule, SpaceX has become central to US space operations. In April, the Pentagon awarded it 28 national security missions valued at $5.9 billion. Another NASA crewed flight is scheduled for later this month.
While Musk briefly threatened to pull Crew Dragon amid the feud, he eventually backtracked. Nonetheless, NASA officials were reportedly concerned, highlighting the risks of over-reliance.