Earlier this month, the White House directed the U.S. Department of Defense (the Pentagon) and NASA to gather detailed information about billions of dollars in contracts with Elon Musk's SpaceX company, in a escalatory move that came after the public disagreement between U.S. President Donald Trump and Musk, according to four sources familiar with the matter disclosed to Reuters.
According to sources, the Trump administration is seeking through this review to prepare options to respond to Musk and his companies, which may include measures to reduce the role that SpaceX plays in sensitive military programs such as the new U.S. missile defense system, and Musk holds federal contracts estimated to be worth about $22 billion.
Trump: We will reconsider everything
On board Air Force One, President Trump told reporters on June 6: "We will reconsider everything," in a direct threat regarding the possibility of stopping federal funding and support for Musk's companies. However, sources did not confirm whether the administration actually intends to cancel any of the current contracts.
Musk transitioned from being a presidential advisor at the head of the Office of Management and Budget (DOGE) to one of the president's most prominent public critics.
In previous statements, Musk called for isolating Trump and accused him of questionable relationships, before later attempting to backtrack on these statements.
NASA and the Pentagon are in a difficult position
SpaceX and the Department of Defense declined to comment on the ongoing investigations, while NASA confirmed in a statement that it continues to collaborate with its industrial partners to ensure the achievement of the president's goals in space.
These developments raise concerns about the politicization of government contracts, especially since SpaceX is considered a vital partner for the U.S. government in critical areas including satellite launches, transporting astronauts, and collaborating with intelligence agencies like the National Reconnaissance Office on secret projects related to national security.
