White House orders review of SpaceX contracts amid Trump–Musk feud
The White House has initiated a comprehensive examination of SpaceX's federal agreements, following a public dispute between President Donald Trump and billionaire Elon Musk.
The directive, issued earlier this month, directs the Pentagon and NASA to closely evaluate SpaceX's contracts—valued at around $22 billion—indicating possible retaliation against Musk and his firms.
This action comes after Trump threatened last week to reassess government relationships with Musk following the entrepreneur's public criticism of the president and calls for his impeachment.
Officials at the Pentagon are currently contemplating limiting SpaceX's involvement in a forthcoming U.S. missile defense initiative. Meanwhile, the White House has not committed to a decision regarding existing contracts. “We’ll examine everything,” Trump stated to reporters aboard Air Force One on June 6.
Neither SpaceX nor the Defense Department has responded to inquiries for comments. NASA indicated that it would continue to collaborate with industry partners to fulfill the president’s objectives in space. A spokesperson for the White House refrained from specifically addressing Musk, emphasizing the administration's dedication to “a thorough review process.”
Sources indicate that the investigation into the contracts is intended to provide the administration with leverage should Trump decide to take action against Musk, who was recently ousted from his position as head of the cost-reduction Department of Government Efficiency. “The review serves as political leverage,” one source informed Reuters.
Critics caution that political motivations could threaten national security. “It’s ironic that Musk’s contracts are now facing the same scrutiny he previously advocated for,” remarked Scott Amey from the Project on Government Oversight. “Decisions should prioritize the public interest instead of personal conflicts.”
SpaceX plays a crucial role in significant government functions, including transporting astronauts to the International Space Station and managing a classified satellite network for the National Reconnaissance Office.
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