By Ioana Monica Dorhoi, PhD
March 23, 2025
Elon Musk’s SpaceX is positioned to reap billions in new federal contracts, thanks in part to policies championed by President Trump and key allies within the administration. While supporters argue that SpaceX leads in technological innovation, critics express concerns over potential conflicts of interest and undue favoritism toward Musk’s ventures.
Expansion of SpaceX’s Role in Defense and Commerce
The Trump administration’s Department of Defense has increasingly touted SpaceX’s rocketry as a revolutionary means to transport military cargo worldwide. This push aligns with the Air Force’s recent efforts to explore rapid-response logistics using the company’s Starship rocket. Although SpaceX’s latest test flights have faced setbacks, including multiple explosions, the Pentagon remains committed to evaluating its feasibility for military applications.
Concurrently, the Commerce Department has opened the door for Starlink, SpaceX’s satellite internet service, to receive federal funding under a $42 billion rural broadband initiative. This marks a significant reversal from the Biden administration’s approach, which had largely excluded Starlink from such funding opportunities.
NASA’s Mars-Focused Vision
Under pressure from Musk, NASA is shifting its focus toward Mars exploration, a move that would allow SpaceX to secure lucrative federal contracts for manned missions to the Red Planet. SpaceX’s dominance in launch services, combined with its aggressive lobbying efforts, has placed it at the forefront of NASA’s strategic planning.
Influence on Federal Agencies
SpaceX’s influence extends beyond contractual agreements. Musk’s allies, some of whom hold government positions, have actively shaped policies that favor the company. For instance, SpaceX employees working temporarily at the Federal Aviation Administration (FAA) have reportedly had the ability to influence decisions that could benefit the company, including approvals for new launchpads and increased flight frequencies.
Additionally, the Trump administration’s reshuffling of key regulatory bodies, such as the Federal Communications Commission (FCC), has favored SpaceX’s expansion. The recent appointment of Brendan Carr, a known Musk supporter, as FCC chairman has already led to approvals for expanded federal radio spectrum access, a crucial asset for Starlink’s growth.
Political Contributions and Influence
Musk’s political contributions have also raised eyebrows. Having donated nearly $300 million to Trump’s 2024 campaign, Musk subsequently secured a White House advisory role, overseeing cost-cutting measures across federal agencies. This dual role as both a policymaker and a federal contractor has alarmed ethics watchdogs, who warn of the potential for conflicts of interest.
Growing Military Investments in SpaceX
SpaceX’s footprint in military contracting is set to expand significantly, particularly in missile defense. The Pentagon is advancing a project dubbed “Golden Dome,” aimed at intercepting nuclear and hypersonic missile threats. Given SpaceX’s leading role in launch capabilities, industry analysts expect the company to capture a substantial share of this multibillion-dollar initiative.
Further cementing its military ties, SpaceX has leveraged its recruitment of former defense officials to advocate for its technology within the Pentagon. Notably, Gary Henry, a former Air Force official turned SpaceX executive, played a role in securing a $102 million contract for Starship’s military applications before returning to the Pentagon as a consultant.
Ethical and Competitive Concerns
Despite the technological advantages that SpaceX offers, some industry experts worry about the company’s outsized influence on federal policies. The Trump administration’s dismissal of officials responsible for ethics oversight has left many questioning the fairness of SpaceX’s contract awards. Critics argue that with key government offices defunded or dismantled, the safeguards against preferential treatment are weakened.
Danielle Brian, executive director of the Project on Government Oversight, described the situation as “an abuse of power and a clear conflict of interest that undermines fair competition.” Meanwhile, other space industry players, such as Sierra Space and Blue Origin, have voiced concerns that SpaceX is monopolizing federal contracts at their expense.
The Future of SpaceX’s Government Partnerships
Looking ahead, SpaceX’s integration with federal initiatives appears poised to deepen. Whether it’s broadband expansion, defense logistics, or space exploration, Musk’s enterprises stand to gain unprecedented access to federal funding and resources. While his supporters hail this as a win for American innovation, skeptics warn that unchecked favoritism could erode transparency and competition in government contracting.
As the Trump administration continues to restructure federal spending priorities, the question remains: Is SpaceX’s dominance the result of superior technology, or is it a product of political maneuvering? The answer may shape the future of both the space industry and government accountability for years to come.



