financetom
Business
financetom
/
Business
/
White House reviews SpaceX contracts as Trump-Musk feud simmers, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
White House reviews SpaceX contracts as Trump-Musk feud simmers, sources say
Jun 13, 2025 3:37 PM

(Removes duplicate dateline.)

WASHINGTON (Reuters) -The White House earlier this month directed the Defense Department and NASA to gather details on billions of dollars in SpaceX contracts following the public blowout between President Donald Trump and billionaire Elon Musk, four people familiar with the order told Reuters.

Sparking an ongoing review, the administration ordered the agencies to scrutinize Musk's contracts to ready possible retaliation against the businessman and his companies, these people said. As Reuters reported on Thursday, Pentagon officials are simultaneously considering whether to reduce the role that SpaceX, Musk's space and satellite company, may win in an ambitious new U.S. missile defense system.  

Reuters couldn't determine whether the White House intends to cancel any of the approximately $22 billion in federal contracts SpaceX now has. But the review shows the administration is following through on a threat by Trump during his spat with Musk last week to possibly terminate business and subsidies for Musk ventures. "We'll take a look at everything," the president said, speaking to reporters aboard Air Force One on June 6.

In an email to Reuters, a White House spokesperson didn't answer questions about Musk's business, saying the "Trump administration is committed to a rigorous review process for all bids and contracts." In a separate statement, a spokesperson at NASA said the agency "will continue to work with our industry partners to ensure the president's objectives in space are met." 

Neither SpaceX nor officials at the Defense Department responded to requests for comment. 

The people familiar with the order said the contract scrutiny is intended to give the administration the ability to move fast if Trump decides to act against Musk, who until recently was a senior advisor to the president and the head of the cost-cutting Department of Government Efficiency, or DOGE. The review is "for political ammunition," one of the people said. 

Whether the U.S. government could legally, or practically, cancel existing contracts is unclear. But the possibility underscores concerns among governance experts that politics and personal pique could improperly influence matters affecting government coffers, national security and the public interest. 

"There's an irony here that Musk's contracts could be under the same type of subjective political scrutiny that he and his DOGE team have put on thousands of other contracts," said Scott Amey, a contracting expert and general counsel at the Project on Government Oversight, a watchdog group based in Washington. "Any decision shouldn't be based on the egos of two men but on the best interests of the public and national security."  

Musk's SpaceX in recent years has become a crucial partner of the U.S. government in much of its aerospace and defense work - launching satellites and other space cargo and potentially managing a crucial element of the "Golden Dome" missile shield planned by Trump. 

Although Musk in recent days has sought to walk back some of his critiques of the president  - such as calling for Trump's impeachment last week and linking him to a convicted sex offender - his outbursts nonetheless highlighted the government's reliance on SpaceX. 

Before reversing course, Musk threatened to decommission the company's Dragon spacecraft. The spacecraft, as part of a roughly $5 billion contract with NASA, is the only U.S. vessel currently capable of carrying astronauts to and from the International Space Station. 

SpaceX is also building a network of hundreds of spy satellites under a classified contract with the National Reconnaissance Office, a U.S. intelligence agency. The contract was a pivotal transaction for SpaceX, deepening its ties with U.S. defense and intelligence services.

(Editing by Paulo Prada)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Carlyle to Buy $300 Million in Equity Sharing Home Loans From Unison
Carlyle to Buy $300 Million in Equity Sharing Home Loans From Unison
Sep 17, 2024
09:54 AM EDT, 09/17/2024 (MT Newswires) -- Carlyle Group ( CG ) said Tuesday it has agreed to buy up to $300 million in equity sharing home loans from Unison and to make a strategic investment in the company. Unison's new equity sharing home loan combines home loans with equity sharing agreements, allowing homeowners to convert home equity into cash...
UK's VivoPower to combine with Canadian hydrogen technology firm in $1.13 bln deal
UK's VivoPower to combine with Canadian hydrogen technology firm in $1.13 bln deal
Sep 17, 2024
Sept 17 (Reuters) - Power infrastructure developer VivoPower International ( VVPR ) said on Tuesday it has signed a non-binding agreement to merge with Canada's Future Automotive Solutions and Technologies (FAST), which would create a $1.13 billion combined company. The agreement values VivoPower's ( VVPR ) equity at $556 million and FAST at $578 million, and allows the companies an...
RTX Says Unit Awarded Contract for Project to Streamline Radar Production for US Navy Program
RTX Says Unit Awarded Contract for Project to Streamline Radar Production for US Navy Program
Sep 17, 2024
09:51 AM EDT, 09/17/2024 (MT Newswires) -- RTX (RTX) said its Raytheon subsidiary has been awarded a new contract by the Office of Naval Research to assist with a project to streamline and automate the production of transmit and receive modules used in the US Navy's SPY-6 radar systems. Financial details of the contract weren't disclosed. Work on the new...
Talkspace Shares Jump After Launching Partnership With Amazon Health Services
Talkspace Shares Jump After Launching Partnership With Amazon Health Services
Sep 17, 2024
09:56 AM EDT, 09/17/2024 (MT Newswires) -- Talkspace ( TALK ) shares jumped past 15% in recent Tuesday trading after the company said it's launching a partnership with Amazon.com's ( AMZN ) Amazon Health Services to raise awareness of its mental health care services on Amazon ( AMZN ). Under the partnership, Amazon ( AMZN ) will help customers discover,...
Copyright 2023-2025 - www.financetom.com All Rights Reserved