Elon Musk’s companies are set to benefit massively from a wave of new federal contracts and support across several key US government departments, as the Trump administration continues to align policies with Musk’s interests, as per The New York Times report.

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A new era of influence

Appointed by President Trump to lead a cost-cutting effort, Musk is running a group called the Department of Government Efficiency (DOGE), which has overseen the dismissal of nearly 100,000 federal workers and the shutdown of various agencies. While the exact scope of his power is unclear, his growing influence is undeniable.

Also read: Trump backs Musk's claim of ‘white genocide’ in South Africa, Grok fact-check calls them out

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SpaceX embedded across government

Across the government, Musk’s aerospace company SpaceX is becoming deeply embedded.

  • The Pentagon is exploring the use of SpaceX rockets to rapidly transport military equipment around the globe.
  • NASA is being pushed, partly due to Musk’s lobbying, to shift focus towards Mars exploration—a move that could see SpaceX winning major contracts to send the first humans to the red planet.
  • The FAA and White House have begun installing Starlink satellite internet terminals, expanding Musk’s presence inside federal systems.
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According to The New York Times, this expansion comes not only from Trump’s directives but also from the placement of Musk’s allies and former employees in influential government positions.

The New York Times report said, “Even if Trump had never given Musk and his employees a government role—or if former President Joseph R. Biden Jr. had been elected to a second term—SpaceX would have continued to secure new government work. What has changed is the overall value of the work expected to be delivered to SpaceX.”

Federal contracts

SpaceX was already a top federal contractor, with $3.8 billion in contracts secured in fiscal year 2024 across 344 deals. But that figure is expected to grow significantly under current policies prioritising private space companies for key services such as:

  • Satellite manufacturing
  • Communications infrastructure
  • Government transport missions

One major step includes the FAA’s recent approval to double SpaceX’s Falcon 9 rocket launches at Cape Canaveral, from 48 to 120 per year.

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During the Biden administration, SpaceX’s Starlink satellite internet service was mostly excluded from federal rural broadband funding. That changed with the appointment of Howard Lutnick as Commerce Secretary. At his confirmation hearing, Lutnick vowed to change how $42 billion in broadband funds are distributed.

“Let’s use satellites, let’s use wireless, and let’s use fibre,” Lutnick said. “And let’s do it the cheapest, most efficiently we can.” This shift allows Starlink to fully compete for rural broadband deals nationwide.

Ethical concerns

Musk’s reach inside the government has raised ethical red flags. SpaceX employees embedded in federal agencies, including the Federal Aviation Administration, have been granted ethics waivers allowing them to participate in decisions that may directly benefit SpaceX.

One employee, Theodore Malaska, posted on X that FAA systems are now integrating Starlink satellites to relay weather data to pilots, technology that could bring further revenue to Musk’s company. Though the FAA claims only eight Starlink terminals are currently in use, others have appeared in White House offices and at the General Services Administration.

Also read: Trump makes rare admission on Musk’s conflicts of interest, says 'wouldn’t show' businessman China war plans

Federal law prohibits employees from making decisions that benefit their financial interests or give the appearance of a conflict. While Musk has claimed he is not personally involved in securing contracts, the whole situation raises unprecedented questions about influence and access.

After a fatal collision between a military helicopter and a civilian plane in January, Transportation Secretary Sean Duffy brought in SpaceX teams to help modernise air traffic systems. Musk soon criticised Verizon for delays in implementing the FAA’s updated network, calling it a “serious risk to air travellers”. With Starlink now being considered as an alternative, SpaceX could secure a foothold in another critical infrastructure system.

Musk’s influence comes after he donated nearly $300 million to Donald Trump’s 2024 campaign and later joined the administration as a cost-cutting adviso.

Blair Levin, a former FCC official, told NYT, “The odds of Elon getting whatever Elon wants are much higher today. He is in the White House and Mar-a-Lago. No one ever anticipated that an industry competitor would have access to those kinds of levers of power.”

NASA, which has already paid SpaceX over $13 billion in contracts over the past decade, may hand over even more in future deals. These have included cargo and astronaut missions and launching the agency’s largest space probes.

Now, Trump has nominated Jared Isaacman, a billionaire entrepreneur who paid SpaceX to fly to orbit twice, as the new head of NASA. Isaacman’s firm, Shift4 Payments, previously held a stake in SpaceX, earning $25 million before selling it off. In his ethics filings, Isaacman promised to sever all remaining financial ties to the company.

He will join Michael Altenhofen, another former SpaceX staffer who became a senior NASA adviser in February.

(With inputs from agencies)