
Trump administration weighed dropping SpaceX contracts after Musk feud, but found most too crucial: Report
- by Moneycontrol
- Jul 20, 2025
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Trump–Musk rift triggers White House review of SpaceX contracts
After the US President Donald Trump got into feud with Tech Billionaire Eon Musk the White House has started reviewing, according to a report by The Wall Street Journal.
The administration launched the review to “identify potential waste in agreements worth billions of dollars,” citing sources familiar with the process, the report mentioned.
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Similar data was also requested from NASA and at least five other federal agencies. The documents, described as “scorecards,” outlined the value of each SpaceX contract and evaluated whether other vendors could potentially fulfill the same roles more efficiently.
However, after reviewing the submitted data, officials at both the Pentagon and NASA concluded that the majority of SpaceX’s contracts were too strategically important to be discontinued. While a few may remain under review, a widespread termination was deemed unfeasible.
This episode marks a notable shift in the relationship between Musk and Trump. Once a key figure in Trump’s government efficiency efforts, Musk’s public criticism of administration policies has led to a sharp deterioration in their alliance.
SpaceX
SpaceX President Gwynne Shotwell recently met with White House officials during the contract review, underscoring the gravity of the process. Details of their discussions remain confidential.
The review reaffirmed a long-standing reality: the U.S. has few alternatives to SpaceX for critical space capabilities.
SpaceX currently leads the commercial launch sector, with its reusable Falcon rockets serving as the backbone for government payload deployment. Its Crew Dragon capsule is now the only U.S. spacecraft certified to ferry astronauts to the International Space Station.
In recent months, SpaceX launched an upgraded GPS satellite for the US Space Force, and in April, the Pentagon awarded it 28 national-security missions valued at $5.9 billion - more than any other provider. NASA has also scheduled another crewed mission with SpaceX later this month.
However, this dependency has drawbacks. At the peak of his feud with Trump, Elon Musk even threatened to retire Crew Dragon before reversing course, raising concerns within NASA about overreliance on a single provider.
Efforts to reduce US dependence on SpaceX have highlighted the government’s reliance on the company's advanced technology and competitive pricing. Programs are being structured to boost competition, but private challengers continue to grapple with technical delays and the challenges of space-grade hardware development.
Meanwhile, SpaceX not only launches its own rockets but also carries payloads for rival firms - a point Shotwell emphasized at an investor event in November - citing the company’s track record of competitive pricing and reliable performance.
Moneycontrol World Desk
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