In a dramatic turn of events, President Donald Trump's efforts to disentangle government dealings with Elon Musk's SpaceX have encountered significant roadblocks. An official review has underscored the aerospace company's pivotal role in sustaining America's preeminence in space. The friction between Trump and Musk, now the world's richest person, escalated after Musk publicly criticized Trump's Big Beautiful Bill and made personal remarks about the president's past association with convicted sex trafficker Jeffrey Epstein.
The situation intensified when a high-ranking General Services Administration official instructed the Defense Department to collect detailed records of all SpaceX contracts and transactions, as reported by The Wall Street Journal. This data was to be sent to the White House for further examination and possible action. The National Aeronautics and Space Administration (NASA) received similar requests to assess if other contractors could provide the same services more efficiently.
However, the Defense Department's thorough analysis concluded that most SpaceX agreements are indispensable for departmental and NASA operations, according to government insiders. The review also highlighted the federal government's heavy dependence on Musk's companies for maintaining leadership in space exploration and the limited competition in the aerospace market. Musk's firm holds a commanding position in rocket launch services and low Earth orbit satellite operations. In contrast, competitors like Boeing face technical challenges that prevent them from rivaling SpaceX's technological prowess.
Amid the tension, Musk threatened to decommission the Crew Dragon spacecraft, the only American-certified vehicle for transporting astronauts to and from the International Space Station (ISS). This threat caused alarm within NASA, especially given Crew Dragon's role in the recent rescue of two astronauts stranded on the ISS for 286 days. Astronauts Butch Wilmore and Suni Williams had no return options after their Boeing Starliner malfunctioned during a mission intended to last only a week. After an extended nine-month stay in space, they were safely returned to Earth by Musk's Crew Dragon in March.
While the review was ongoing, SpaceX President Gwynne Shotwell held meetings with White House officials. Despite the ongoing feud, SpaceX secured additional government contracts through 2025, including a $5.9 billion deal for 28 national security flights. The company launched a GPS satellite for the Space Force in May, and NASA expects SpaceX to send a new crew to the ISS shortly.
The dispute between Trump and Musk remains unresolved, with disagreements on various policy matters, including the Big Beautiful Bill and Trump's refusal to release further information related to Epstein. Musk has announced plans to create his political party in response to the spending bill, which he claims could bankrupt America and significantly increase the national debt. Trump countered by suggesting that cutting ties with Musk's companies would save a fortune, hinting at a review by the Department of Energy's Office of Inspector General (DOGE).
Musk responded to Trump's dismissal of the Epstein client list as a Democrat hoax by urging the release of the files to identify any fabricated parts. These developments signal an ongoing battle of wills between two of the most influential figures in American politics and industry.
