The Wall Street Journal reported on July 20 that following the breakdown in relations between U.S. President Donald Trump and billionaire Elon Musk, the Trump administration has initiated a review of contracts between SpaceX and multiple federal agencies.
The U.S. General Services Administration (GSA) has requested the Department of Defense, NASA, and other government agencies to submit reports detailing their collaborations with SpaceX and assess whether competitors could perform the same tasks more efficiently.
Preliminary evaluations suggest that most government contracts with SpaceX may be difficult to terminate due to the company's dominant position in rocket launches and low-Earth orbit satellite services.
Musk had been a staunch supporter of Trump during the 2024 U.S. presidential election. However, the two have recently clashed over issues such as the "Big and Beautiful" tax and spending bill, engaging in a heated public dispute.
On June 30, Musk posted dozens of messages on social media criticizing the legislation, prompting Trump to respond the next day, claiming that Musk "has received more subsidies from the U.S. government than anyone in history" and suggesting that the "Efficiency in Government Department" should investigate his companies' federal funding.
Trump argued that the simplest way to cut federal spending would be to "terminate" government contracts with Musk's companies.
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