Elon Musk hits back after Trump threatens contracts. SpaceX's government ties, explained

When President Donald Trump took office in January, he began offering plenty of signs that his goals for U.S. spaceflight aligned closely with those of billionaire tech mogul Elon Musk .

Now those goals, which included reaching Mars during Trump's second term as a top priority, appear to be up in the air with the volatile fallout between two of the world's most powerful men.

As insults have turned to threats, Trump has suggested he'd hit Musk where it could hurt most: His wallet. Musk's SpaceX has spent years positioning itself at the center of American civil and military spaceflight – a profitable relationship that has made the company's founder incredibly wealthy.

In response, Musk has floated – and then retracted – the idea of decommissioning a SpaceX vehicle critical to NASA's spaceflight program.

Serious threats, or empty words? That remains to be seen as Musk and Trump reportedly consider a détente .

In the meantime, here's what to know about what's at stake if the U.S. government's relationship with SpaceX were to crumble:

U.S. spaceflight: Dozens of NASA space missions could be axed under Trump's budget

Trump threatens Elon Musk 's government contracts

The feud between Trump and his former top adviser escalated in a dramatic fashion when the president threatened to cut off the taxpayer dollars that have fueled Elon Musk's businesses, including SpaceX.

"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts," Trump said in a post on his social media platform. "I was always surprised that Biden didn’t do it!"

In all, Musk and his businesses have received at least $38 billion in government contracts, loans, subsidies and tax credits, a  Washington Post analysis found .

With SpaceX as the fulcrum of much of the U.S. government's spaceflight programs, parting ways with the commercial company would leave a void that would be hard to fill. But NASA Press Secretary Bethany Stevens said in a post on social media site X that “NASA will continue to execute upon the President’s vision for the future of space.”

“We will continue to work with our industry partners to ensure the President’s objectives in space are met,” Stevens wrote.

What is SpaceX?

Elon Musk, the world's richest man, founded SpaceX, in 2002.

The commercial spaceflight company is headquartered at Starbase in South Texas near the U.S.-Mexico border. The site, which is where SpaceX has been conducting routine flight tests of its 400-foot megarocket known as Starship , was recently voted by residents to become its own city.

SpaceX conducts many of its own rocket launches, most using its two-stage Falcon 9 rocket, from both California and  Florida . That includes a regular cadence of deliveries of Starlink internet satellites into orbit, and occasional privately-funded commercial crewed missions on the Dragon.

The most recent of SpaceX's private human spaceflights, a mission known as Fram2 , took place in April. SpaceX was also famously involved in funding and operating the headline-grabbing Polaris Dawn crewed commercial mission in September 2024.

SpaceX's Falcon 9 rocket used for many NASA missions

SpaceX also benefits from billions of dollars in contracts from NASA and the Department of Defense by providing launch services for classified satellites and other payloads .

Gwynne Shotwell, CEO of SpaceX, has said the company has about $22 billion in government contracts,  according to Reuters . The vast majority of that, about $15 billion, is derived from NASA.

SpaceX's famous 230-foot Falcon 9 rocket ‒ one of the world's most active ‒ is routinely the rocket of choice to get many NASA missions off the ground. For instance, the rocket is due in the days ahead to help propel a four-person crew of private astronauts to the International Space Station for a venture with NASA known as Axiom Mission 4 .

NASA also has plans to use SpaceX's Starship in its Artemis lunar missions to ferry astronauts aboard the Orion capsule from orbit to the moon's surface. The rocket, which is in development, has yet to reach orbit in any of its nine flight tests beginning in April 2023.

What is the SpaceX Dragon? Capsule is vital to US spaceflight

SpaceX's Dragon capsule is also a famous vehicle that is widely used for a variety of spaceflights. The capsule, which sits atop the Falcon 9 for launches to orbit, is capable of transporting both NASA astronauts and cargo to the International Space Station.

Under NASA's commercial crew program , the U.S. space agency has been paying SpaceX for years to conduct routine spaceflights to the orbital laboratory using the company's own launch vehicles.

The first of SpaceX's Crew missions ferrying astronauts to the orbital outpost on its Dragon capsule began in 2020, with the 10th and most recent contingent reaching the station in March for about a six-month stay. Standing nearly 27 feet tall and about 13 feet wide, Dragon capsules can carry up to seven astronauts into orbit, though most of SpaceX's Crew missions feature a crew of four.

The Dragon spacecraft also was the vehicle NASA selected to bring home the two NASA astronauts who rode the doomed Boeing Starliner capsule to the space station in June 2024. Certifying the Starliner capsule for operation would give NASA a second vehicle in addition to Dragon for regular spaceflights to orbit.

Musk says he could decommission Dragon before backing off

Because Boeing is still developing its Starliner capsule, Dragon is the only U.S. vehicle capable of carrying astronauts to and from the International Space Station. It's also one of four vehicles contracted to transport cargo and other supplies to the orbital laboratory.

For that reason, Musk's threat June 5 to decommission the Dragon " immediately " would be a severe blow to NASA if he were to follow through on it. Musk, though, appears to already be backing off on the suggestion, which he made in response to Trump's own threats.

In response to a user who advised Musk to "Cool off and take a step back for a couple days," Musk replied: “Good advice. Ok, we won’t decommission Dragon.”

Seven astronauts are aboard the International Space Station, including three Americans. Four of the astronauts rode a SpaceX Dragon to the station for a mission known as Crew-10, while the remaining three launched on a Russian Soyuz spacecraft .

Contributing: Joey Garrison , Josh Meyer , USA TODAY; Reuters

Eric Lagatta is the Space Connect reporter for the USA TODAY Network. Reach him at elagatta@gannett.com

This article originally appeared on USA TODAY: Trump SpaceX contracts threats in Musk feud: What that could mean