Despite leading a sweeping effort to cut federal contracts, Tesla and SpaceX CEO Elon Musk continues to benefit from lucrative government deals. A leaked filing, reportedly from a federal grant database, reveals that SpaceX was awarded a $38.8 million contract from NASA for research and development.
Conflicting Priorities?
Policy analyst Will Stancil, who obtained the filing, highlighted the contradiction in a tweet:
“You’ll never believe who is still getting new government contracts while all the contracts at the Department of Education and USAID are being nuked from orbit.”
This revelation follows an ABC News report showing that Musk’s businesses have received billions in federal contracts, even as his Department of Government Efficiency (DOGE) has aggressively terminated deals across multiple agencies. Under President Joe Biden’s administration, SpaceX secured approximately $3.7 billion in government contracts between 2021 and 2024. Meanwhile, since former President Donald Trump empowered Musk to make drastic federal spending cuts, DOGE has claimed responsibility for slashing $1 billion in contracts—including $270 million from over 100 contracts last week alone.
Concerns Over Conflict of Interest
During a White House press briefing, a reporter questioned whether Musk reviewing Department of Defense contracts—many of which involve his business competitors—created a conflict of interest. Musk dismissed the concern, stating:
“I’m not filing the contract. It’s the people at SpaceX. If you see any contract where it wasn’t the best value for the taxpayer, let me know.”
Critics were quick to react. Daily Kos writer Emily C. Singer called it “infuriating” to watch Musk benefit from government funding while cutting other programs. Former journalist Tom Haudricourt called Musk’s defense a “bulls— answer”, pointing out that SpaceX is his company.
Despite growing concerns, White House Press Secretary Karoline Leavitt insisted Musk would self-regulate any potential conflicts, stating:
“If Elon Musk comes across a conflict of interest, then Elon will excuse himself from those contracts.”
With ongoing contract cuts and new government deals surfacing, questions remain over whether Musk’s dual roles truly serve taxpayer interests.
