The White House recently instructed the Defense Department and NASA to compile details on SpaceX contracts, sources told Reuters.
This decision came after a public dispute between President Donald Trump and Elon Musk, the founder of SpaceX.
According to four individuals familiar with the matter, the review may lead to retaliatory action against Musk or his companies.
The administration’s directive involves scrutiny of SpaceX’s federal contracts, which are worth billions of dollars.
Simultaneously, the Pentagon is reportedly assessing whether SpaceX’s involvement should be limited in a planned U.S. missile defense system.
This system is part of a broader national security initiative being developed by the administration.
Reuters noted that it remains unclear whether the government will cancel any of SpaceX’s estimated $22 billion in federal contracts.
However, the order indicates the administration is pursuing the possibility Trump raised during a recent press appearance.
Speaking aboard Air Force One on June 6, President Trump said, “We’ll take a look at everything,” in response to questions about Musk’s government ties, the New York Post reported.
His remarks followed Musk’s public criticism and controversial social media activity.
A White House spokesperson declined to comment directly on Musk’s business but stated the administration is committed to thorough contract reviews.
NASA, in a separate statement, said it would continue working with private companies to meet the president’s space goals.
SpaceX and Defense Department officials did not respond to Reuters’ requests for comment.
The administration has not disclosed a timeline or final objective of the contract review.
Sources indicated the review is intended to provide flexibility if Trump opts to act against Musk, who previously served as an advisor and headed a cost-efficiency agency called DOGE.
One source said the administration wanted “political ammunition.”
Legal experts say it is uncertain whether the government can terminate the contracts in question.
The review raises concerns about whether political tensions are affecting matters tied to national security and federal budgets.
Scott Amey, general counsel at the Project on Government Oversight, noted the irony in the situation. He said Musk’s contracts are now subject to the same intense scrutiny he once applied to others as DOGE chief.
Over the past several years, SpaceX has become a key partner to the U.S. government in both aerospace and defense operations. It is currently responsible for satellite launches and may play a role in the missile defense shield known as the “Golden Dome.”
Although Musk has recently attempted to ease tensions with Trump, his earlier statements—such as calls for impeachment and personal accusations—have intensified public scrutiny. These incidents have drawn attention to SpaceX’s reliance on federal partnerships.
In a brief escalation, Musk had threatened to deactivate the Dragon spacecraft. The vehicle is central to a $5 billion NASA contract and is currently the only operational U.S. vessel capable of transporting astronauts to and from the International Space Station.
In addition to its NASA work, SpaceX is also constructing a network of surveillance satellites under a classified agreement with the National Reconnaissance Office. That contract has been critical to the company’s growing defense and intelligence portfolio.
