WASHINGTON, June 14 — Earlier this month, the White House instructed the Department of Defense and NASA to compile information on SpaceX’s multibillion-dollar federal contracts in the wake of a public fallout between President Donald Trump and Elon Musk, according to four sources familiar with the directive.
WASHINGTON, June 14 — Earlier this month, the White House instructed the Department of Defense and NASA to compile information on SpaceX’s multibillion-dollar federal contracts in the wake of a public fallout between President Donald Trump and Elon Musk, according to four sources familiar with the directive.
The review, prompted by the clash, aims to examine Musk’s federal dealings in preparation for potential retaliatory actions against the billionaire and his companies. As reported by Reuters on Thursday, the Pentagon is also weighing whether to limit SpaceX’s involvement in a planned US missile defense initiative.
While it remains unclear if the administration intends to cancel any of SpaceX’s roughly US$22 billion (RM93 billion) in government contracts, the move reflects Trump's threat last week to reassess federal business and subsidies tied to Musk. “We’ll take a look at everything,” the president said aboard Air Force One on June 6.
A White House spokesperson declined to address questions on Musk’s businesses, instead affirming the administration’s commitment to a thorough review process for all federal contracts. NASA, in a separate statement, confirmed its continued collaboration with industry partners to advance the president’s space objectives.
Neither SpaceX nor the Defense Department responded to requests for comment.
Sources indicated the review is intended to arm the administration with leverage should Trump decide to act, given Musk’s recent departure from his advisory role and leadership of the government efficiency-focused DOGE office. One insider described the move as preparation for "political ammunition."
Legal experts remain uncertain about the administration's authority to cancel active contracts, raising concerns that political motivations may interfere with decisions impacting national security and public resources.
“There’s a certain irony if Musk’s contracts now face the kind of politically charged scrutiny he and DOGE have applied to others,” said Scott Amey, general counsel at the Project on Government Oversight. “Such decisions should reflect the public and national interest, not personal rivalries.”
SpaceX has become a key government contractor in recent years, supporting satellite launches, defense systems, and under a US$5 billion NASA deal, operating the only US spacecraft capable of ferrying astronauts to the ISS.
The company is also developing a classified surveillance satellite network for the National Reconnaissance Office, further cementing its strategic value to US defense and intelligence operations. — Reuters
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