Asger Risom
The Trump administration recently explored terminating government contracts with SpaceX amid escalating personal tensions between Donald Trump and Elon Musk. But a review led by senior officials revealed that SpaceX’s services are too essential to U.S. defense and space operations to abandon.
The Trump administration recently explored terminating government contracts with SpaceX amid escalating personal tensions between Donald Trump and Elon Musk. But a review led by senior officials revealed that SpaceX’s services are too essential to U.S. defense and space operations to abandon.
Contract Review Launched Amid Personal Feud
In early June, following Musk’s pointed social media posts, President Trump suggested cancelling government contracts with Musk’s companies. The idea quickly gained traction among administration officials.
White House Requested a Contract Audit
On June 9, a top procurement official from the General Services Administration requested data on all current SpaceX agreements with federal agencies, including the Pentagon and NASA.
“Revaluation Sheets” Mapped Federal Spending
Officials compiled spreadsheets listing the value of SpaceX contracts, assessing whether alternative providers could perform the same work at equal or lower cost.
SpaceX’s Strategic Role Became Clear
The review concluded that most SpaceX contracts, especially those related to national security launches and satellite infrastructure, are irreplaceable for the Department of Defense and NASA missions.
Shotwell Met With White House During Review
SpaceX President Gwynne Shotwell reportedly met with senior White House officials during the review period, underscoring the gravity of the situation and the company’s efforts to protect its federal partnerships.
SpaceX Dominates Critical Sectors
The analysis reaffirmed SpaceX’s global leadership in both rocket manufacturing and satellite internet—areas where few competitors can match its scale or reliability.
Political Tensions Sparked the Review
The dispute was sparked by Musk’s public criticism of Trump’s congressional spending plans and a now-deleted post implying Trump’s link to the Jeffrey Epstein case.
Deportation Comment Added Fuel
Trump escalated the feud by hinting at the possibility of deporting Musk in a retaliatory Truth Social post, further straining the already volatile relationship.
Contracts Will Stay, But Under Scrutiny
Although most agreements remain intact due to national importance, some may still be reassessed for efficiency.
