Trump's effort to cancel Elon Musk's contracts fails as review shows NASA's dependence on SpaceX: Report

Defense Department insiders told WSJ that the review only reinforced how vital Elon Musk's SpaceX is, not just to the military, but also to NASA
UPDATED JUL 21, 2025
President Donald Trump threatened to cancel Elon Musk's government contracts amid their fiery public feud in June (Getty Images)
President Donald Trump threatened to cancel Elon Musk's government contracts amid their fiery public feud in June (Getty Images)

WASHINGTON, DC: President Donald Trump appears to have just realized that cutting ties with his former "first buddy" Elon Musk isn’t quite as easy as hitting unfollow on X (formerly Twitter).

The president’s purported push to cancel government contracts with the tech billionaire and his empire reportedly hit a brick wall after a formal review made it clear that the US government is practically glued to SpaceX if it wants to keep its superpower status in space.

It all began when Trump reportedly floated the idea of axing every government dollar heading Musk’s way. He has previously suggested such a move would force the world's richest man to “head back home to South Africa.”

U.S. President Donald Trump arrives for a signing ceremony for the “GENIUS Act” in the East Room of the White House July 18, 2025 in Washington, DC. The act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was passed this week by the U.S. Congress.. (Photo by Anna Moneymaker/Getty Images)
President Donald Trump arrives for a signing ceremony for the 'GENIUS Act' in the East Room of the White House on July 18, 2025, in Washington, DC (Anna Moneymaker/Getty Images)

Within days of the MAGA leader's outburst, a senior official at the General Services Administration ordered the Defense Department to cough up every SpaceX contract and transaction agreement they had.

According to a new report by The Wall Street Journal, the goal was to lay it all bare for the White House to decide the next move.

SpaceX is basically irreplaceable

Defense Department insiders told WSJ that the review only reinforced how vital SpaceX is, not just to the military, but to NASA’s entire space exploration program. It seems like the feds and Musk are practically codependent.

BERLIN, GERMANY DECEMBER 01:  SpaceX owner and Tesla CEO Elon Musk poses on the red carpet of the Ax
SpaceX owner and Tesla CEO Elon Musk poses on the red carpet of the Axel Springer Award 2020 on December 1, 2020, in Berlin, Germany (Britta Pedersen-Pool/Getty Images)

From rocket launches to low Earth orbit satellite services, Musk’s companies have a near-monopoly. The competition is floundering at best. Boeing, in particular, is still playing catch-up and tripping over technical issues while SpaceX keeps winning contracts.

Musk previously threatened to decommission Crew Dragon, the only US-certified ride to and from the International Space Station. That triggered alarms at NASA, especially after Crew Dragon was instrumental in a real-life rescue mission.

Astronauts Butch Wilmore and Sunita Williams were stranded on the ISS for 286 days after their Boeing Starliner broke down. What was supposed to be a week-long jaunt turned into an accidental sabbatical in Earth's orbit. It was Musk’s Crew Dragon that eventually brought them back to Earth this March.

Contracts continue to roll in for SpaceX

Despite all the apparent friction, the contracts keep pouring in.

SpaceX landed a $5.9 billion deal this year to conduct 28 national security flights. Just in May, they launched a shiny new GPS satellite for the Space Force. NASA’s also counting down to the next SpaceX crew launch to the ISS within weeks.

Meanwhile, SpaceX president Gwynne Shotwell was spotted in hush-hush meetings with White House officials while the federal review unfolded.

CAPE CANAVERAL, FLORIDA - MAY 30: The SpaceX Falcon 9 rocket with the manned Crew Dragon spacecraft
The SpaceX Falcon 9 rocket with the manned Crew Dragon spacecraft attached takes off from launch pad 39A at the Kennedy Space Center on May 30, 2020, in Cape Canaveral, Florida (Joe Raedle/Getty Images)

But it seems the animosity between Musk and Trump is alive and well.

They’re still bitterly divided over Trump’s infamous "big, beautiful bill," and Musk’s threat to launch his own political party in protest didn’t exactly smooth things over. He called the bill a financial disaster, warning it could "bankrupt America" and add $3.3 to $4.5 billion to the national debt.

Trump fired back at the time. “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” he posted on Truth Social in June. 



 

The Jeffrey Epstein files only fanned the flames

If the spending bill drove a wedge between them, the Jeffrey Epstein files cracked it wide open.

Musk wasn't buying it after Trump suggested the infamous Epstein files were a "hoax" cooked up by Democrats.

“Wow I can’t believe Epstein killed himself before realizing it was all a hoax,” Musk snarked on X.



 

“He should just release the files and point out which part is the hoax," the billionaire responded to another post.



 

It was the cherry on top of Musk’s fallout with Trump and also struck a nerve with the MAGA base, who have been increasingly frustrated with the Trump administration's handling of the Epstein files. 

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