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Musk vs Trump Dispute Puts $22 Billion in SpaceX Contracts at Risk

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A dramatic fallout between Elon Musk and former U.S. President Donald Trump has sparked concerns over the future of America’s space program. Their heated public exchange on Thursday could put $22 billion worth of SpaceX government contracts in danger, affecting both NASA and Pentagon missions.

The fight started after Musk criticized Trump’s tax and spending plans. Trump, known for not holding back, hit back hard during a meeting at the Oval Office. Musk fired back online, even threatening to pull SpaceX’s Dragon spacecraft,the only American capsule currently transporting astronauts to the International Space Station (ISS). He later walked back that comment, writing on X, “Good advice. Ok, we won’t decommission Dragon,” after a user urged both men to calm down.

Even though Musk reversed the threat, his original message shook the space community. The Dragon capsule plays a vital role in NASA’s missions, especially under a $5 billion deal. If it’s pulled, it could leave the U.S. space agency in a tough spot, relying again on Russia’s Soyuz spacecraft to reach the ISS.

The dispute also puts Musk’s once-close relationship with Trump in the spotlight. Until recently, Musk led Trump’s project to shrink government bureaucracy. The partnership had delivered big wins for SpaceX, including contracts and influence over NASA’s plans. Now, Trump is threatening to cancel Musk’s contracts, which could hurt both sides.

There are political consequences, too. Over the weekend, Trump abruptly dropped Jared Isaacman, Musk’s ally and pick to head NASA. The reason? Trump claimed he was “totally Democrat” because of past political donations.

Since 2002, SpaceX has grown into a global leader in rocket launches and satellite tech. Analysts say that while losing government contracts would be a significant blow, SpaceX is strong enough to survive due to its dominance in the private space market.

Still, this clash could delay NASA’s ambitious projects, including its moon and Mars missions. Trump had proposed cutting back the Artemis moon program, while backing Musk’s Mars vision. A new Senate proposal wants to restore moon mission funding, but it’s unclear if Trump will support it now that he’s at odds with Musk.

Former NASA official Lori Garver summed it up best, saying that canceling SpaceX’s deals might not even be legal. But she warned, “A rogue CEO threatening to decommission spacecraft, putting astronauts’ lives at risk, is untenable.”

By Lucky Anyanje

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