Trump Administration's Attempt To Cut Elon Musk's SpaceX Contracts Thwarted by Vital Role in Defense and NASA

President Donald Trump‘s administration reviewed contracts held by SpaceX with the federal government and found that the majority of these contracts are indispensable to the Defense Department and NASA.

What Happened As per a report by the Wall Street Journal, the review was initiated in early June following President Trump’s public contemplation of cutting ties with Elon Musk‘s businesses.

The objective was to identify potential wastage in the multibillion-dollar agreements SpaceX has with the government. However, the review emphasized SpaceX’s dominance as a premier rocket launcher and a major provider of satellite-internet.

As per the report, an official from the White House clarified that the review was not exclusive to SpaceX but included a variety of companies with lucrative government contracts.

The review process involved the creation of “scorecards” that detailed the value of the SpaceX contracts and evaluated whether a competitor could perform the same job more effectively.

Also Read: Ex-Trump Lawyer Sent This Message To Elon Musk After Feud With Donald Trump Erupted

Despite the initial intention to terminate SpaceX contracts, the White House and agency officials, including those at the Pentagon, concluded that most of the deals were vital to the missions of the Defense Department and NASA.

However, some SpaceX contracts could face continued scrutiny, according to sources familiar with the matter.

Why It Matters: The review process underscored the government’s heavy reliance on SpaceX’s sophisticated technology, with limited alternatives for many rocket launches and low-Earth-orbit satellite services.

This situation continues to give SpaceX, and Musk himself, an outsized role in space.

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