Trump review spares critical SpaceX contracts: WSJ
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US President Donald Trump. Photograph: (Reuters)
Trump’s administration considered cutting federal contracts with SpaceX due to Musk's criticism, but found most contracts essential, especially for national security and space missions.
US President Donald Trump’s administration reportedly considered axing several federal contracts with Elon Musk’s SpaceX, but found most of them too vital to scrap. This is according to a detailed Wall Street Journal investigation published on July 19, citing senior officials familiar with the matter. The review was initiated after Trump’s public spat with Musk in June 2025, when the tech billionaire criticised Trump on social media platforms. In response, Trump suggested axing Musk’s government deals as a cost-cutting move.
“The easiest way to save federal dollars is to cancel SpaceX contracts,” Trump posted on Truth Social last month. Following the post, Trump-appointed officials at the General Services Administration reportedly circulated internal requests to NASA, the Pentagon, and other departments for a contract-by-contract breakdown of all federal business awarded to SpaceX.
Most SpaceX contracts deemed too essential
However, the WSJ report says most of SpaceX’s federal contracts, especially those linked to national security and human spaceflight were flagged as irreplaceable. The Pentagon, NASA, and intelligence agencies reportedly warned that unwinding such deals would cripple key missions.
One senior official familiar with the review told The Wall Street Journal that “the government has no real alternatives” when it comes to rocket launches, crew missions or military-grade satellite internet.
The review ultimately failed to produce any major cancellations. Instead, the findings reinforced SpaceX’s strategic role in US defence and space infrastructure, from flying GPS satellites and ferrying NASA astronauts to supplying Starlink-based military communications.
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Behind-the-scenes diplomacy and Starlink’s growing role
While Musk and Trump continue to spar in public, SpaceX President Gwynne Shotwell reportedly held quiet meetings with White House officials in recent weeks, indicating efforts to contain the fallout. Meanwhile, SpaceX has secured fresh deals, including a $5.9 billion agreement to launch 28 national security missions for the US Space Force, as per WSJ.
Musk’s space company is also central to the US’s internet-in-space ambitions. Its Starshield unit, a military variant of the Starlink constellation, is under a classified contract with the US intelligence community, the report adds.
NASA too is heavily dependent on Musk’s company. The Crew Dragon capsule remains the only American spacecraft certified to carry astronauts to and from the International Space Station.
Earlier this year, Musk reportedly threatened to suspend Dragon missions during a clash over political pressure. However, he later backed down after internal talks.
No signs of slowdown
Despite political heat, SpaceX continues to dominate global launch markets. The company is expected to launch a crewed NASA mission to the ISS later this month and is ramping up Starlink deployments globally, including in geopolitically sensitive regions like Ukraine and the Indo-Pacific.
While Trump’s call for a SpaceX “review” briefly triggered alarm, the WSJ report makes clear: Musk’s company remains entrenched in US federal architecture and irreplaceable in the current geopolitical and technological landscape.