President Donald Trump\u2018s administration reviewed contracts held by\u00a0SpaceX\u00a0with the federal government and found that the majority of these contracts are indispensable\u00a0to the Defense Department and\u00a0NASA.<\/p>\n
What Happened As per a\u00a0report\u00a0by the Wall Street Journal, the review was initiated in early June following President Trump\u2019s public contemplation of cutting ties with Elon Musk\u2018s businesses. <\/p>\n
The objective was to identify potential wastage in the multibillion-dollar agreements SpaceX has with the government. However, the review emphasized SpaceX\u2019s dominance as a premier\u00a0rocket launcher and a major\u00a0provider of satellite-internet.<\/p>\n
As per the report<\/a>, an official from the White House clarified that the review was not exclusive to SpaceX but included a variety\u00a0of companies with lucrative government\u00a0contracts. <\/p>\n The review process involved the creation of \u201cscorecards\u201d that detailed\u00a0the value of the SpaceX\u00a0contracts and evaluated whether a competitor could perform the same job more effectively.<\/p>\n Also Read: Ex-Trump Lawyer Sent This Message To Elon Musk After Feud With Donald Trump Erupted<\/a><\/p>\n Despite the initial intention to terminate SpaceX contracts, the\u00a0White House and agency officials,\u00a0including those at the Pentagon,\u00a0concluded\u00a0that most of the deals\u00a0were vital to the missions\u00a0of the Defense Department and\u00a0NASA. <\/p>\n However,\u00a0some SpaceX contracts could face\u00a0continued scrutiny, according to sources familiar with the matter.<\/p>\n Why It Matters: The review process underscored the government\u2019s heavy reliance on SpaceX\u2019s sophisticated technology, with\u00a0limited alternatives for many rocket\u00a0launches and low-Earth-orbit satellite services. <\/p>\n This situation continues to give SpaceX, and Musk himself, an outsized role in space.<\/p>\n Read Next<\/p>\n