White House reviews SpaceX contracts --- 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 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.

The White House has initiated a review of SpaceX contracts, following a public dispute between President Donald Trump and Elon Musk. The administration directed the Defense Department and NASA to gather details on billions of dollars in SpaceX contracts, according to Reuters [1].

The review, sparked by the ongoing feud between the two, aims to scrutinize Musk's contracts to prepare for potential retaliation. The administration is considering whether to reduce SpaceX's role in an ambitious new U.S. missile defense system [1].

The White House has not yet determined if it intends to cancel any of the approximately $22 billion in federal contracts SpaceX currently holds. However, the review indicates the administration is following through on Trump's threat to possibly terminate business and subsidies for Musk's ventures [1].

Musk's SpaceX has been a crucial partner for the U.S. government in aerospace and defense, launching satellites and managing critical space missions. The review has raised concerns among governance experts about political influence on government contracts [1].

Elon Musk recently stepped back from his feud with Trump, expressing regret for his posts about the president. This may have an impact on his companies, including SpaceX, which could be vulnerable to retribution [4].

The review of SpaceX contracts underscores the potential political influence on government spending and national security. Investors and financial professionals should monitor this situation closely, as it could have implications for SpaceX's future and the broader aerospace industry [1].

References:
[1] https://m.economictimes.com/news/international/global-trends/white-house-reviews-spacex-contracts-as-trump-musk-feud-simmers-sources-say/articleshow/121841428.cms
[4] https://www.bostonglobe.com/2025/06/11/nation/musk-trump-feud/