Donald Trump’s attempt to sever government contracts with Elon Musk’s companies has hit a major roadblock.
A formal review has revealed just how crucial these contracts are to America’s dominance in space.
The drama between Trump and Musk started when Musk criticized Trump’s Big Beautiful Bill, and Trump responded by suggesting that the government could save millions of dollars by “terminating” government contracts with Musk’s companies.
Days after Trump’s suggestion, a senior official at the General Services Administration ordered the Defense Department to detail every current SpaceX contract and transaction agreement.
The official also made similar requests to NASA to see if a competitor could run the same contracts more effectively.
However, the review revealed that most of the deals with SpaceX are vital to the missions of the department and NASA, insiders claim.
It also highlighted how the government relies on Musk’s companies to remain leaders in space exploration, and how little competition there is in the market.
Musk has a virtual monopoly on rocket launches and low Earth orbit satellite services, as competitors like Boeing face setbacks in their race to catch up with SpaceX technology.
In the midst of the drama between Musk and Trump, the SpaceX founder had threatened to decommission his Crew Dragon, which is the only US-certified vehicle able to fly people to and from the space station.
The threats sparked concern within NASA, particularly after the Crew Dragon was recently involved in a mission to save two astronauts who had been stranded at the International Space Station for 286 days.
A week-long mission turned into nine months in space, until Musk’s Crew Dragon came to the rescue to bring them home in March.
SpaceX has continued to win contracts in 2025, including a deal worth $5.9 billion to conduct 28 national security flights.
This has not improved relations between Trump and Musk, who remain divided on several key administration issues – primarily the Big Beautiful Bill and Trump’s more recent decision not to release any new information about Epstein.
Musk pledged to launch his own political party in protest of the spending bill, which he warned could “bankrupt America” and add an estimated 3.3 billion to 4.5 billion to the national debt.
Trump immediately hit back, writing that Musk would probably have to close up shop and head back home to South Africa if he didn’t receive subsidies.
The feud between Trump and Musk continues, with no end in sight.