Musk's SpaceX expands influence across US government as contracts and conflicts grow

SpaceX’s ambitions now touch the Pentagon, US Commerce Department, NASA, FAA, FCC, and even the White House.

Elon Musk’s SpaceX is rapidly becoming one of the most influential private companies in Washington, with its ventures expanding deep into nearly every corner of the Trump administration. From defence and broadband to NASA and aviation, SpaceX is positioned to gain tens of billions in new federal contracts, even as concerns mount over conflicts of interest, ethical breaches, and the company’s outsized sway in government policy, the New York Times reported.

Power and influence through federal integration 

SpaceX’s ambitions now touch the Pentagon, US Commerce Department, NASA, FAA, FCC, and even the White House. Starlink satellite dishes have been installed in federal agencies, while the Pentagon promotes SpaceX rocketry to move military cargo. Meanwhile, the Commerce Department reversed previous restrictions, making Starlink eligible for the $42 billion rural broadband program.

US President Donald Trump has directly empowered Musk, putting him in charge of the US Department of Government Efficiency (DOGE), where Musk initiated sweeping federal cuts, removing nearly 100,000 workers and consolidating power across agencies. Simultaneously, SpaceX continues to secure new contracts for launchpads, broadband expansion, and missile defence initiatives.
Federal agencies have already approved several key SpaceX requests, including doubling Falcon 9 rocket launches from Cape Canaveral and awarding additional radio spectrum to Starlink. These approvals follow Musk’s $300 million donation to Trump’s 2024 campaign and his current role as a federal adviser.

Ethical concerns and blurred lines 

Critics, including watchdogs and former federal officials, warn that Musk’s dual role as a private executive and government official is fostering unprecedented conflicts of interest. Employees temporarily working in agencies such as the FAA have received waivers allowing them to act in ways that benefit SpaceX directly. One such employee, Theodore Malaska, has promoted integration of Starlink into FAA systems, a move that could funnel future contracts to the company.

"The abuse of power and corruption that is spreading across federal agencies because of Musk’s dual roles is horrifying," said Danielle Brian of the Project on Government Oversight.

Federal rules prohibit awarding contracts to employees or their affiliated companies and ban even the appearance of conflicts. Yet with oversight bodies defunded or removed, accountability has largely evaporated.

Pentagon deals and the "Golden Dome" project 

SpaceX is deepening ties with the Pentagon through contracts and personnel. Former Air Force officials working for SpaceX helped win a $102 million contract to explore delivering military cargo globally via Starship rockets. Despite recent test failures, Pentagon officials continue promoting Starship, with one official now back at the US Defense Department lobbying for its military use.

SpaceX is also a top contender in the Pentagon’s $100 billion "Golden Dome" missile defence initiative, which seeks to intercept nuclear, cruise, and hypersonic missiles from space. The program will require more satellite launches and tracking services—a market where SpaceX dominates.

NASA shifting toward Mars 

NASA has awarded SpaceX $13 billion in contracts over the past decade, but even more may be on the way. Jared Isaacman, a billionaire with financial ties to SpaceX, is Trump’s nominee to run the agency. Former SpaceX executive Michael Altenhofen is now a senior NASA adviser.

With Isaacman at the helm, observers expect a pivot from NASA’s Artemis moon program to Musk’s preferred Mars ambitions. This shift could sideline Boeing, currently leading the Artemis rocket program, in favour of commercial firms like SpaceX.

Rural broadband overhaul 

US Commerce Secretary Howard Lutnick has reversed Biden-era broadband rules, allowing satellite-based internet systems like Starlink to compete for $42 billion in rural broadband funding. Trump appointees have reshaped the FCC and Commerce Department to ease restrictions on satellite services.

Starlink also recently received permission to enhance signal power for smartphone connectivity, despite objections from major telecom companies.

Former Commerce Department official Evan Feinman criticised the decision: "Stranding rural America with worse internet so the world’s richest man gets richer is another betrayal by Washington."

Aviation modernization and private integration 

Following a deadly midair collision in January, Transportation Secretary Sean Duffy invited Musk’s assistance in modernizing FAA systems. SpaceX engineers are now embedded in the FAA, helping design weather systems using Starlink.

While the FAA claims only eight terminals are in use and were donated, Starlink dishes have been spotted at other federal locations, including the White House. Musk denies personally pursuing contracts, but federal ethics rules bar even appearances of conflict—standards some experts argue have been thoroughly undermined.

"By any objective standard, this is inappropriate," said Steven Schooner, a professor at George Washington University. "We just have never seen anything like this."

As Musk’s influence expands, watchdogs warn that the merging of private interests and public power under Trump’s second term represents a historic shift in federal governance—and one that may prove difficult to unwind.