Trump-Musk feud continues? White House orders review of SpaceX contracts after fallout: Report

Time of India

15 hours ago

The White House instructed the Defense Department and Nasa earlier this month to examine details of
contracts worth billions following President Donald Trump's public disagreement with
, according to four sources familiar with the directive who spoke to Reuters.
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The administration instructed these agencies to examine Musk's contracts to prepare potential actions against the entrepreneur and his enterprises, these sources indicated. Pentagon officials are also evaluating whether to limit SpaceX's involvement in a new American missile defence initiative, as Reuters reported on Thursday.
While the ultimate intention regarding SpaceX's current federal contracts worth approximately $22 billion remains unclear, the assessment will mark the administration's follow-through on Trump's June 6 statement to journalists aboard Air Force One, where he mentioned possible termination of business and subsidies for Musk's ventures, stating "We'll take a look at everything."
A White House spokesperson, responding via email to Reuters, avoided specific questions about Musk's operations, stating the "Trump administration is committed to a rigorous review process for all bids and contracts." Nasa's spokesperson separately indicated the agency would maintain collaboration with industry partners to achieve presidential space objectives.
Sources familiar with the directive indicated the contract review aims to enable swift administrative action should Trump decide to move against Musk, who previously served as a senior presidential adviser and led the Department of Government Efficiency (DOGE).
One source characterised the review as "for political ammunition."
The feasibility of legally cancelling existing contracts remains uncertain. However, the situation highlights governance experts' worries about political and personal influences potentially affecting government spending, national security and public interest matters.
Another Reuters report on Friday cited three people familiar with the project, claiming that the feud called into question the role of Musk's SpaceX in the new US missile defense system.
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Until recently, the White House considered a plan for SpaceX, Musk's rocket and satellite venture, to partner with software maker Palantir and drone builder Anduril to construct crucial elements of the project, dubbed "Golden Dome.
" These people said the administration instructed the Pentagon to prioritize a network of satellites for the purpose.
A new framework aimed at tracking and preventing potential missile attacks against the United States is currently under consideration, which could reduce SpaceX's involvement.
Three individuals stated that one option might initially forego SpaceX's satellite capabilities to focus on expanding existing ground-based missile defence systems instead.
Scott Amey, a contracting specialist at Washington's Project on Government Oversight, noted the situation's paradox, where Musk's contracts face similar subjective political scrutiny that his DOGE team applied to numerous other contracts, emphasising that decisions should prioritise public and national security interests over personal disputes.
SpaceX has become essential to American government aerospace and defence operations, managing satellite launches and potentially overseeing a crucial component of Trump's "Golden Dome" missile defence system.
Despite Musk's recent attempts to moderate his presidential criticisms, including his (now-deleted posts) impeachment call and allegations linking Trump to convicted sex offender Jeffrey Epstein, his outbursts highlighted government dependence on SpaceX.
Before his reversal, Musk suggested decommissioning the Dragon spacecraft, currently America's sole means of transporting astronauts to and from the International Space Station under a £5 billion Nasa contract.
Additionally, SpaceX is developing a classified satellite network for the National Reconnaissance Office, strengthening its relationship with American defence and intelligence communities.
The feud between Musk and Trump intensified after the Tesla owner criticised Trump's key domestic bill, describing it as a 'disgusting abomination' and alleging that Trump's name appeared in unreleased Jeffrey Epstein files—a post Musk subsequently deleted.
In response, Trump called Musk 'a big-time drug addict' and mocked his appearance during a recent Oval Office visit.
However, the tensions seemed to ease when Musk expressed "regret" saying he went too far. 'I regret some of my posts about President @realDonaldTrump last week. They went too far,' Musk wrote Wednesday on the platform he owns. In response, the White House signalled a possible softening of tone. 'The President acknowledged the statement that Elon put out this morning, and he is appreciative of it,' Press Secretary Karoline Leavitt told reporters.