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The U.S. Government Is Stuck With SpaceX. But Trump Can Still Hurt It.

  • Elon Musk and Donald Trump are engaged in a public feud in 2025 that threatens Musk's SpaceX government contracts worth approximately $22 billion.
  • The conflict began after Musk criticized a sweeping tax-cut bill championed by Trump, who then publicly threatened to terminate Musk's federal subsidies and contracts.
  • SpaceX has been a key partner for NASA and the U.S. Defense Department since 2015, conducting regular missions and receiving contracts including a June 2024 $843 million award to develop a deorbit vehicle for the ISS.
  • Experts emphasize SpaceX's critical role, with Scott Hubbard stating there is currently no alternative to its Falcon 9 and Dragon spacecraft, and Deputy Director Clayton Swope calling SpaceX a "vital organ" in U.S. Space efforts.
  • While the government is unlikely to cancel existing contracts due to limited alternatives, the ongoing dispute raises uncertainty about the future of U.S. Space initiatives tied to Musk's companies.
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Devdiscourse broke the news in India on Friday, June 6, 2025.
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