Trump Announces Review of Contracts with Musk’s Companies

Trump to review contracts with Musk’s companies.

Musk threatens to cut government ties.

SpaceX holds major federal contracts.

President Donald Trump announced this Friday that his administration will review the contracts that Elon Musk’s companies currently hold with the U.S. federal government.

In his remarks, Trump stated that the financial sums involved are significant and that these agreements are now under scrutiny due to their budgetary impact.

“We’re going to review everything… it’s a lot of money. It’s a substantial subsidy,” Trump declared as he addressed reporters at his golf club in Bedminster, New Jersey.

This statement marks a new phase in the ongoing tension between Trump and Musk, which has escalated rapidly in recent days following the collapse of their once-friendly relationship.

Trump to Review Multi-Billion-Dollar Contracts with Musk’s Companies

Trump threatens to end Elon Musk’s government contracts in response to the billionaire’s criticism of his tax bill. “Without me, he would’ve lost the election,” Musk said. https://t.co/lkcjvpq3l2
— El País, June 5, 2025

The dispute intensified after Musk publicly criticized Trump’s proposed federal budget.

In retaliation, Trump took to his social media platform to suggest that one of the best ways to save taxpayer money would be to cancel government contracts and subsidies awarded to Musk.

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The verbal sparring between the two influential figures has continued with jabs and sharp comments.

Among Musk’s companies, SpaceX holds the most significant federal contracts.

Ongoing Verbal Spat Between Trump and Musk

Trump Announces Review of Contracts with Musk’s Companies – Photo: Shuttersock

In April, the U.S. Space Force awarded SpaceX a $5.9 billion contract for satellite launches and space missions over the next five years.

Additionally, in 2021, NASA awarded SpaceX $2.89 billion to develop the lunar spacecraft Starship HLS and conduct crewed spaceflights.

Amid the controversy, Musk issued threats via X (formerly Twitter), as reported by EFE.

He suggested he might dismantle the Dragon spacecraft program, which the U.S. relies on for transporting personnel and supplies to the International Space Station (ISS).

Conclusion: Uncertain Future for Government-Musk Collaboration

However, Musk walked back some of his comments the following day. When asked whether he would cut government ties, Musk stated he was “assessing the situation.”

“We’ll look into it, only if it’s fair,” he added, leaving the door open for future decisions based on justice—for both himself and the country.
For his part, Trump downplayed the feud, saying he “doesn’t have time to think about Musk,” who was once a key figure in his administration.

“I only wish him the best,” Trump concluded, noting that his attention is currently focused on international matters, including tariff talks with China and negotiations involving Russia and Iran.