White House examining SpaceX agreements amid decline in Trump-Musk dispute: allegations claim
President Trump sheds light on Elon Musk's involvement in plans to abolish the EV mandate.
After a public spat between President Donald Trump and SpaceX CEO Elon Musk, the White House instructed the Defense Department and NASA earlier this month to assemble data on billions of dollars in SpaceX contracts.
In response, the Trump administration is meticulously examining Musk's contracts in preparation for potential retaliation against him and his companies, as reported by Reuters. Insiders disclosed that this review aims to enable swift action if Trump decides to penalize Musk, who previously served as head of the Department of Government Efficiency and a senior advisor to the president.
*TRUMP TALKS ABOUT THE MOMENT HIS RELATIONSHIP WITH MUSK TOOK A TURN*
Following the public spat between President Donald Trump and SpaceX CEO Elon Musk, the White House directed the Defense Department and NASA to collect SpaceX contracts' information.
"We're gonna comb through it all," said Trump during a flight on Air Force One on June 6.
A White House representative declined to comment on Musk's business matters to Reuters, citing the administration's commitment to a thorough evaluation process for every bid and contract. NASA, on the other hand, has stated that it will keep working diligently with industry partners to ensure the president's space-related objectives are fulfilled.
One of the people familiar with the order told Reuters that the contract review is meant to give the administration the ability to act swiftly if Trump decides to retaliate against Musk. It's referred to as a move for "political ammunition."
*PENTAGON CONSIDERS REDUCING SPACEX'S ROLE IN THE "GOLDEN DOME"*
The Pentagon is weighing the possibility of decreasing SpaceX's prospective role in the new U.S. "Golden Dome" missile defense system.
Though it remains uncertain whether the federal government could legally or practically terminate existing contracts, the possibility has sparked worries among governance experts that politics and personal animosity could improperly interfere with matters pertaining to government money, national security, and public interest.
"There's an irony here that Musk's contracts could be subjected to the same type of subjective political scrutiny that he and his team have applied to thousands of other contracts," said Scott Amey, contracting expert and general counsel at the Project on Government Oversight, to Reuters. "Any decision should be based on the interests of the public and national security, not the egos of two individuals."
For years, SpaceX has positioned itself as a vital partner to the US government in various aerospace and defense projects, including satellite launches and space cargo transportation, as well as potentially managing a crucial component of Trump's planned "Golden Dome" missile shield.
Recently, Musk has sought to tone down his criticisms of Trump, which included calls for Trump's impeachment and allegations that the president was included in the Justice Department's files on its investigation into accused pedophile Jeffrey Epstein.
*HOW MUCH HAVE MUSK'S TESLA AND SPACEX BENEFITED FROM GOVERNMENT FUNDS?*
It is unclear whether the White House plans to cancel any of SpaceX's approximately $22 billion in federal contracts.
Despite their ongoing feud, Musk's criticisms of Trump have highlighted the federal government's reliance on SpaceX. Initially, Musk threatened to terminate the Dragon spacecraft, a crucial vessel for carrying astronauts to the International Space Station and back, as part of a $5 billion contract with NASA. However, he later reversed this decision.
In addition to contracts, SpaceX has benefited from other forms of government support, such as tax incentives and grants for clean energy technology. Tesla, meanwhile, has gained from federal and state EV tax credits, grants for battery development, and incentives for clean energy technology.
Reuters contributed to this report.
- President Trump has expressed concern over Elon Musk's business matters, particularly his involvement in SpaceX contracts, following a public spat between the two.
- The White House has instructed the Defense Department and NASA to gather information on SpaceX contracts, totaling billions of dollars, as part of a potential response to Musk's actions.
- The review of SpaceX contracts is intended to empower the administration to take swift action if President Trump decides to penalize Musk, who has a history of working in government efficiency and advisory roles.
- The review of SpaceX contracts raises concerns among governance experts, as it could potentially interfere with matters of public interest, given the extensive partnership between SpaceX and the US government in various aerospace and defense projects.
