President Donald Trump’s attempts to sever government ties with Elon Musk’s SpaceX encountered significant obstacles when an official review demonstrated the company’s essential role in maintaining America’s space superiority.
Trump had previously indicated during his public dispute with the world’s wealthiest individual that his administration could potentially save substantial taxpayer funds by terminating government agreements with Musk’s enterprises.
The president suggested such action would compel Musk to return to South Africa.
The conflict between the two figures erupted dramatically following Musk’s public opposition to Trump’s Big Beautiful Bill and personal comments regarding the president’s past association with convicted sex trafficker Jeffrey Epstein.
Following the escalation, a high-ranking General Services Administration official directed the Defense Department to compile comprehensive documentation of all existing SpaceX contracts and transaction agreements.
This is according to The Wall Street Journal.
The official indicated that the compiled information would be forwarded to the White House for additional review and potential action.
Similar data requests were submitted to the National Aeronautics and Space Administration as part of efforts to determine whether alternative contractors could fulfill identical services more efficiently.
The Defense Department’s comprehensive analysis, however, concluded that the majority of SpaceX agreements remain essential to both departmental and NASA operational requirements, according to government sources.
The review additionally underscored the federal government’s substantial reliance on Musk’s companies for maintaining leadership in space exploration capabilities and revealed limited competition within the aerospace market.
Musk maintains a dominant position in rocket launch services and low Earth orbit satellite operations, while competitors such as Boeing continue struggling with technical setbacks that prevent them from matching SpaceX’s technological capabilities.
During the height of tensions between Musk and Trump, the SpaceX founder threatened to decommission his Crew Dragon spacecraft, which remains the sole American-certified vehicle capable of transporting personnel to and from the space station.
These threats generated significant concern within NASA, particularly given the Crew Dragon’s recent critical role in rescuing two astronauts who had been stranded at the International Space Station for 286 days.
Astronauts Butch Wilmore and Suni Williams became trapped on the ISS without return options after their Boeing Starliner experienced serious technical malfunctions during what was planned as a week-long mission.
The mission extended to nine months in space before Musk’s Crew Dragon successfully transported them back to Earth in March.
SpaceX President Gwynne Shotwell conducted meetings with White House officials while the contract review remained ongoing, sources reported to the publication.
Despite the ongoing feud between Musk and Trump, SpaceX has secured additional government contracts throughout 2025, including a $5.9 billion agreement to conduct 28 national security flights.
The company successfully launched an enhanced GPS satellite for the Space Force in May, and NASA expects SpaceX to transport a new crew to the International Space Station within weeks.
These developments have not resolved the dispute between Trump and Musk, who continue disagreeing on multiple administration policy matters, particularly regarding the Big Beautiful Bill and Trump’s recent decision against releasing additional Epstein-related information.
Musk announced plans to establish his own political party in opposition to the spending legislation, which he characterized as potentially bankrupting America and adding an estimated $3.3 billion to $4.5 billion to the national debt.
Trump responded immediately, stating: “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
The president continued: “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
Musk subsequently criticized Trump’s characterization of the Epstein client list as a “hoax” created by Democrats.
“Wow, amazing that Epstein ‘killed himself’ and Ghislaine is in federal prison for a hoax,” the SpaceX CEO posted on his X platform.
Musk added in another post: “He should just release the files and point out which part is the hoax.”
The post Trump’s Attempt to Terminate Musk’s Contracts Backfires as Review Reveals America’s Critical Dependence on SpaceX appeared first on Resist the Mainstream.
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Author: Jordyn M.
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