In a recent development, President Donald Trump hinted at the possibility of terminating some government contracts associated with Elon Musk's companies.
However, the majority of SpaceX contracts were deemed too essential to be subjected to cutbacks by the Department of Government Efficiency (DOGE). "DOGE is the monster that might have to go back and eat Elon," Trump humorously remarked during a press interaction outside the White House earlier this month.
According to The Wall Street Journal, the Trump administration had initiated a review of Musk's government contracts, which amount to billions, with the intent of identifying potential areas where DOGE could reduce waste, fraud, and abuse.
However, most of SpaceX's contracts with the Defense Department and NASA were considered too critical to be scrutinized. Some contracts might still be under review, as per sources. Neither Musk nor SpaceX responded to the Journal's requests for comments.
SpaceX, a leading player in the fields of rockets, satellites, and space travel, reportedly has over $20 billion in federal contracts for these services. The first signs of a rift between Trump and Musk emerged following a June 5 Truth Social post where Trump threatened to "terminate" government contracts with Musk due to a public disagreement over a "one big beautiful bill." Musk was advocating for more spending cuts.
In the wake of this, Josh Gruenbaum, the General Services Administration's commissioner for the Federal Acquisition Service, requested the Defense Department to provide an outline of all SpaceX contracts and transactions. Gruenbaum also sought similar information on SpaceX contracts with NASA and several other federal agencies. These contracts were evaluated based on "scorecards" that assessed potential competitors on their ability to perform the tasks currently undertaken by SpaceX.
During this period of investigation, SpaceX President Gwynne Shotwell reportedly met with White House officials. This isn't the first instance of Musk clashing with the U.S. government, which has played a significant role in making him one of the wealthiest individuals globally. Musk previously had a dispute with the Biden administration over North Carolina's flood response.
While SpaceX is a dominant provider of space services to the U.S., it also collaborates with its competitors on occasion. At an investor event last November, Shotwell stated that SpaceX earns its government contracts by delivering results and offering the best prices.
Despite the ongoing feud with Trump, SpaceX secured a $5.9 billion contract for national-security flights in April and launched an upgraded GPS satellite for the Space Force in May. SpaceX is also scheduled to fly a new crew to the International Space Station next week. Musk had previously threatened to decommission the Crew Dragon during the height of his disagreement with Trump, but later retracted this statement.
In addition to space travel, SpaceX is a global leader in communications, providing Starlink and Starshield services to the U.S. government, along with a major classified spy satellite project. As the saga between Trump and Musk continues to unfold, it remains to be seen how this will impact SpaceX's future contracts and its standing as a leading player in the space industry.
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