About $22 billion worth of SpaceX government contracts are now at risk, potentially disrupting several U.S. space programs, following a public dispute between Elon Musk and former President Donald Trump on Thursday.
The conflict began after Musk criticized Trump’s recent tax and spending policies. In response, Trump openly condemned Musk during an Oval Office speech and later threatened via social media to terminate contracts with Musk’s companies. Musk, in turn, announced plans to “decommission” SpaceX’s Dragon spacecraft, which NASA relies on as its primary U.S. vehicle for ferrying astronauts to and from the International Space Station (ISS). However, Musk later retracted the decommissioning statement, agreeing to hold off after a follower advised cooling tensions.
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This incident marks an unprecedented rupture between one of NASA’s key commercial partners and the U.S. government. Under a roughly $5 billion NASA contract, SpaceX’s Dragon capsules are vital for maintaining continuous American access to the ISS. Any disruption to this service could severely impact the ISS program, which is governed by international agreements involving dozens of countries. Currently, NASA depends on Russia’s Soyuz spacecraft as a backup.
The feud raises concerns about Trump’s willingness to retaliate politically by cutting billions of dollars in contracts with SpaceX, potentially stalling the U.S. space program’s progress. NASA’s spokesperson declined to comment on SpaceX directly but affirmed the agency’s commitment to achieving presidential space goals through its industry partners.
Despite the dispute, SpaceX has grown into a dominant force in the space industry well before Musk’s involvement in Republican politics, securing a strong market position in rocket launches and satellite communications that may help buffer the fallout. However, significant revenue loss and missed contract opportunities are expected if government support wanes.
Under the Trump administration, the U.S. space sector and NASA’s 18,000-strong workforce have faced uncertainty amid proposed layoffs, budget cuts, and the absence of a confirmed NASA administrator. Jared Isaacman, a billionaire private astronaut and Musk ally nominated to lead NASA, was withdrawn from consideration reportedly due to political disagreements, with Trump labeling him “totally Democrat.”
Musk’s ambitious goal of sending humans to Mars has been a key part of Trump’s space agenda but has drawn criticism for diverting resources from NASA’s primary mission of returning astronauts to the Moon. Trump’s budget proposed ending further Artemis Moon missions after the third, effectively halting the expensive Space Launch System (SLS) rocket program. However, the Senate Commerce Committee’s recent budget draft reinstates funding for missions four and five, committing at least $1 billion annually to SLS through 2029.
Since SpaceX’s rockets provide a more affordable alternative to SLS, the administration’s stance on the Senate’s budget will be a significant indicator of Musk’s continuing political influence.
Founded in 2002, SpaceX has secured approximately $15 billion in NASA contracts, including for its Falcon 9 rockets and Starship development—a multi-purpose rocket system intended to land astronauts on the Moon in the near future. Additionally, the company holds contracts worth billions to launch most of the Pentagon’s national security satellites and is developing a massive spy satellite network for U.S. intelligence.
While some experts, including former NASA Deputy Administrator Lori Garver, argue that canceling SpaceX contracts would likely be illegal and against U.S. interests, she criticized Musk’s threat to decommission spacecraft as irresponsible and potentially endangering astronauts’ lives.
