A public falling-out between Elon Musk and President Donald Trump has thrown $22 billion (Ksh.2.8 trillion) worth of U.S. government contracts with SpaceX into uncertainty, raising serious concerns over the future of critical NASA and Pentagon space programs.
The rift escalated after Musk criticized Trump’s tax and spending policies, prompting the president to threaten termination of SpaceX’s contracts. In a swift and dramatic response, Musk announced he would begin “decommissioning” SpaceX’s Dragon spacecraft, currently NASA’s only U.S.-based vehicle capable of ferrying astronauts to the International Space Station (ISS).
Although Musk later backed down following public backlash and a suggestion from a follower to “cool off,” his threat alone marked an extraordinary move from a key NASA partner. The Dragon capsule operates under a $5 billion contract and is central to the U.S.’s human spaceflight operations.
“The idea that a CEO would threaten to ground a spacecraft and risk astronauts’ lives is untenable,” said former NASA Deputy Administrator Lori Garver. She added that canceling SpaceX’s contracts would likely be illegal and not in America’s national interest.
NASA press secretary Bethany Stevens declined direct comment on the situation but affirmed the agency’s commitment to fulfilling the president’s space objectives in collaboration with industry partners.
The Musk-Trump clash disrupts what had been a fruitful alliance. Trump had previously backed Musk’s ambitious Mars program and supported policies favorable to SpaceX, including shifting focus from NASA’s moon missions to a Mars-centered agenda and pushing for a space-based missile defense system.
However, Musk’s influence appears to be waning. Over the weekend, the White House abruptly withdrew support for Musk’s favored pick to lead NASA, billionaire private astronaut Jared Isaacman, citing his donations to Democratic candidates.
The ongoing drama could significantly impact NASA’s Artemis moon program and Pentagon satellite launches. While Trump’s budget had proposed cutting Artemis missions beyond the third, the Senate’s version of the bill restored funding for later missions and guaranteed at least $1 billion annually for the competing Space Launch System (SLS) through 2029—potentially undermining SpaceX’s role in lunar exploration.
Despite the political turbulence, analysts note that SpaceX’s global dominance in satellite launches and communications may help buffer financial fallout. “It wouldn’t be catastrophic,” said Justus Parmar, CEO of SpaceX investor Fortuna Investments, “but there’s no question that it would result in significant lost revenue and missed opportunities.”
Founded in 2002, SpaceX has secured $15 billion in NASA contracts, in addition to billions more for national security satellite launches and an expansive spy satellite network.
With political tensions rising and NASA still without a confirmed administrator, the Musk-Trump feud threatens to derail key components of America’s space ambitions, highlighting the fragile intersection of politics, personality, and technological progress.
Written By Rodney Mbua
