The Biden administration has launched a formal review of SpaceX’s federal contracts following a public feud between President Donald Trump and Elon Musk. The review, reportedly directed earlier this month, involves both the Department of Defense and NASA compiling detailed insights on SpaceX’s business dealings—worth nearly $22 billion in total.
Feud with Musk Triggers Political Retaliation Plans
The move stems from rising tensions after Musk criticized Trump and even called for his impeachment. White House sources said the contract audit is designed to provide "political ammunition" if Trump decides to act against Musk, who had previously served as head of the Department of Government Efficiency (DOGE).
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SpaceX’s Critical Role in National Security
SpaceX remains a critical player in U.S. national security operations. Its Dragon spacecraft, developed under a $5 billion contract with NASA, is currently the only American vehicle capable of transporting astronauts to and from the International Space Station. The company also holds classified satellite contracts with the National Reconnaissance Office and is involved in Trump’s proposed “Golden Dome” missile shield program.
Uncertainty Over Possible Cancellations
There is no official word yet on whether existing contracts could be legally or practically canceled. However, President Trump said aboard Air Force One on June 6, “We’ll take a look at everything,” hinting at potential consequences.
Critics Warn of Political Interference
White House reviews SpaceX contracts as Trump-Musk feud simmers, Reuters sources say https://t.co/cJDjWiwjxK
— Investor Central Club + STAX AI (@ICtradeideas) June 14, 2025
Government watchdogs have raised red flags over using contract law as a political weapon. Scott Amey from the Project on Government Oversight said, “Any decision shouldn’t be based on the egos of two men but on the best interests of the public and national security.”
SpaceX, NASA, and Pentagon Remain Silent
SpaceX and the Department of Defense did not respond to media inquiries. NASA issued a neutral statement, emphasizing its continued collaboration with private partners to meet national space goals.