SpaceX eyes billions in new US govt contracts as Musk’s influence widens in Trump administration

Elon Musk, the boss of several multi-billionaire companies, threw weight and money behind Republican candidate Donald Trump ahead of 2024the  presidential elections. Today, he seems to be reaping the fruits of his ‘win-it-all or lose-it-all’ bet.

A New York Times report has revealed that Musk’s companies, particularly SpaceX, are set to receive billions in federal government contracts in coming years.

US government departments seeking SpaceX services

For instance, SpaceX’s Starlink service is being considered as a frontrunner for the Commerce Department’s $42 billion rural broadband push. The proposal was largely pushed on the backburner during former president Joe Biden’s era.

Then, the Federal Aviation Administration (FAA) is also doubling down on using Starlink services to expand government internet access. The NYT reported that even the White House seems to have purchased Starlink satellite dishes.

It’s ironic how Musk, under the ambit of his so-called Department of Government Efficiency, continues to slash federal workforce and government size but at the same time, he continues to expand his influence in the government.

Observers say his position as an advisor to President Trump gives him the ability to cancel federal contracts in the name of cost-cutting, while at the same time, allows him to influence government decisions that may land his companies lucrative contracts.

For instance, the NYT reported how some SpaceX employees were recently allowed to work (temporarily) for the FAA, allowing them the capacity to award more work to SpaceX.

Earlier this month, the FAA approved one of SpaceX’s requests allowing the company to build new rocket launchpads or to launch more frequently from federal spaceports in Florida and California.

SpaceX is urging the Federal Communications Commission for more federal radio spectrum to expand its Starlink satellite service, which relies on spectrum to transmit signals between satellites and Earth. Gaining more spectrum could boost Starlink’s profits, but cellular providers see it as a power grab.

‘Musk has the best tech’

However, Musk’s allies say he has the best tech in the market, giving his companies a higher chance of winning contracts.

Douglas Loverro, a former senior NASA and Pentagon official who also served as an adviser to the Trump transition team on space issues, said, “He does have the best tech.”

“All of this will lift the space industry as a whole, obviously — but it will certainly help SpaceX even more,” he added.

According to one government contracting expert, cited by the NYT, the federal mechanism to fight potential conflicts of interest has been severely weakened after the president sacked officials responsible for identifying and investigating ethics violations.

Danielle Brian, the executive director of Project on Government Oversight, a nonprofit group that tracks federal contracts, said: “We will never know if SpaceX would authentically win competitions for these awards because all of the offices in government intended to prevent corruption and conflicts of interest have been beheaded or defunded.”