Musk To Lose $22-B Of SpaceX Contracts With NASA

U.S. President Donald Trump has threatened to cancel Elon Musk’s government contracts amid a dispute over a tax-cut bill.

Roughly $22 billion in SpaceX government contracts are at risk, and several U.S. space programs could face significant disruption. I Photo: Official SpaceX Photos Flickr

In response, Musk initially said he would decommission SpaceX’s Dragon spacecraft to prevent the transport of U.S. astronauts to the International Space Station (ISS), but later appeared to back off the threat, Joey Roulette reported for Reuters.

Roughly $22 billion in SpaceX government contracts are at risk, and several U.S. space programs could face significant disruption in the fallout from the escalating feud between Musk and Trump.

The dispute, sparked by Musk’s criticism of Trump’s proposed tax-cut and spending legislation, quickly spiraled after Trump lashed out at Musk during remarks in the Oval Office.

Musk then fired back in a series of posts on X, prompting Trump to threaten termination of all federal contracts with Musk’s companies.

Musk responded by saying he would begin “decommissioning” the Dragon spacecraft used by NASA. However, hours later, Musk appeared to walk back the statement.

In response to a follower on X who urged both sides to “cool off and take a step back,” Musk wrote: “Good advice. Ok, we won’t decommission Dragon.”