The Trump administration quietly launched a federal review of SpaceX contracts after President Donald Trump publicly suggested severing ties with Elon Musk’s businesses, according to The Wall Street Journal. The review, led by the General Services Administration (GSA), focused on identifying potential waste in SpaceX’s multi-billion-dollar agreements with U.S. government agencies.
Initiated in early June, the GSA requested “scorecards” from agencies such as the Defense Department and NASA, listing contract values and possible alternative providers. The move followed Trump’s posts on Truth Social criticizing Musk and calling for a termination of federal contracts with his companies. Musk, CEO of Tesla and SpaceX, had previously criticized Trump’s tax-and-spending policies, despite having once served as an informal adviser.
Despite the political tension, the White House and Pentagon concluded that most of SpaceX’s deals were essential to national security and space exploration. The review confirmed the company’s critical role in satellite deployment and rocket launches, highlighting its unique capabilities in the defense and aerospace sectors.
SpaceX continues to secure high-value government contracts, including a $5.9 billion Pentagon award in April and multiple NASA mission assignments. The review underscored both the political sensitivity and strategic indispensability of Musk’s space firm in U.S. federal operations.