White House orders NASA, Pentagon to probe SpaceX contracts as Trump-Musk feud simmers

Before reversing course, Musk threatened to decommission the company’s Dragon spacecraft.

In the wake of a public fallout between President Donald Trump and billionaire entrepreneur Elon Musk, the White House has ordered a sweeping review of SpaceX’s government contracts, Reuters reported, citing four people familiar with the matter.

Earlier this month, the White House directed the Department of Defense and NASA to compile detailed information on the nearly $22 billion in federal contracts awarded to SpaceX. The move, sources told Reuters, is part of a broader push by the Trump administration to prepare potential retaliation against Musk and his companies following their escalating feud.

While it remains unclear whether any contracts will ultimately be canceled, the directive signals that Trump is willing to act on his June 6 threat, made aboard Air Force One, to reevaluate all federal ties with the SpaceX CEO. “We’ll take a look at everything,” Trump said at the time.

The review also coincides with a separate effort by Pentagon officials, who are reportedly considering scaling back SpaceX’s role in a proposed U.S. missile defense project, dubbed the “Golden Dome,” according to Reuters. SpaceX, a critical partner in U.S. space and defense operations, has been launching satellites and ferrying cargo for the government for years.

Neither SpaceX nor the Defense Department responded to Reuters’ requests for comment. A NASA spokesperson, in a statement to Reuters, said the agency would “continue to work with our industry partners to ensure the president’s objectives in space are met.” The White House declined to address questions about Musk specifically, but said it remained committed to “a rigorous review process for all bids and contracts.”

Sources told Reuters that the review is being conducted to equip the administration with “political ammunition” should Trump opt to take direct action against Musk, who until recently served as a senior advisor and head of the Department of Government Efficiency, or DOGE.

“This is not about due process. It’s about preparing to hit back,” one source told Reuters.

Government watchdogs have expressed alarm over the prospect of personal grievances dictating public policy. “There’s an irony here that Musk’s contracts could be under the same type of subjective political scrutiny that he and his DOGE team have put on thousands of other contracts,” Scott Amey, general counsel at the Project on Government Oversight, told Reuters. “Any decision shouldn’t be based on the egos of two men but on the best interests of the public and national security.”

The escalating tension comes just days after Musk called for Trump’s impeachment and made unflattering remarks linking the president to a convicted sex offender. Although Musk has since softened his tone, the damage appears to have been done.

Among the contracts now under review is SpaceX’s $5 billion agreement with NASA for the Dragon spacecraft — the only U.S. vessel currently capable of ferrying astronauts to and from the International Space Station. SpaceX is also reportedly building a classified network of surveillance satellites for the National Reconnaissance Office, further cementing its strategic role in national security.

As of now, there is no indication of whether the administration will move to cancel any of SpaceX’s contracts, but the scrutiny alone underscores how personal rivalries at the highest levels could reverberate across space, defense, and public spending.