Billionaire Elon Musk’s SpaceX and United Launch Services, a joint venture between Boeing and Lockheed Martin, has gained a multibillion-dollar Pentagon contract for U.S. Space Force rocket launches on Friday.
Space Systems Command announced the award of three National Security Space Launch (NSSL) contracts to SpaceX, United Launch Services, and Blue Origin to “provide vital launch services in support of U.S. national security missions.”
The projected contract values are approximately $5.92 billion for SpaceX, $5.37 billion for United Launch Services, and $2.39 billion for Blue Origin.
The deal will help Space Force send its most sensitive satellites into orbit.
Why It Matters
The deal comes as Musk, the world’s wealthiest man, continues to lead the Department of Government Efficiency (DOGE) efforts to make massive cuts to the federal government under President Donald Trump’s administration. Thousands of federal workers have faced layoffs as Musk has touted the need to cut federal spending.
What To Know
The deal would support about 50 missions through 2029, helping to launch some of the military’s most sensitive satellites, according to two sources familiar with the decision who spoke to Reuters.
The news comes two weeks after DOGE reviewed the Pentagon as part of its push to eliminate what it calls “wasteful spending.” According to Defense Secretary Pete Hegseth, DOGE has targeted $800 million in contracts and grants.
A senior defense official told reporters that 50,000 to 60,000 civilian jobs will be cut, although fewer than 21,000 workers who accepted a voluntary resignation plan are expected to leave in the coming months.
The cuts are part of a broader effort to trim the Pentagon’s $850 billion budget. While programs like emissions reduction for Navy ships and equity-focused AI research have been slashed, Musk’s SpaceX has been left untouched.
“Musk and DOGE are ignoring the one place where you would actually find savings within the government,” Stephen Semler, a senior fellow at the Center for International Policy, told The Intercept. “Musk realizes that although he’s already getting tons of money from NASA contracts, the untapped potential for his businesses from the Pentagon budget is truly massive.”
The billionaire tech mogul met privately with Hegseth the day after the cuts were announced. The gathering was billed as a discussion on “innovation, efficiencies & smarter production,” according to Hegseth’s post on X, formerly Twitter. The meeting came just months after Musk helped bankroll Trump’s reelection bid with an estimated $300 million in campaign donations.
The investment appears to be paying dividends. Musk’s SpaceX now holds Pentagon contracts worth nearly $8 billion and has become the most valuable defense contractor by market valuation. In 2024 alone, Musk’s companies received $6.3 billion in federal and local contracts, more than any previous year. SpaceX’s hold on the U.S. satellite launch market is so extensive that it is described by industry observers as a near-monopoly.
The overlap between Musk’s public duties and private interests has drawn scrutiny at NASA, where DOGE has begun a financial audit. Since 2015, SpaceX has secured more than $13 billion in NASA contracts and now plays a central role in high-profile missions including cargo and crew transportation to the International Space Station, development of the Artemis lunar lander, and the planned deorbit vehicle for the International Space Station.
What People Are Saying
U.S. Space Force Chief of Space Operations Gen. Chance Saltzman said in a press release: “A robust and resilient space launch architecture is the foundation of both our economic prosperity and our national security. National Security Space Launch isn’t just a program; it’s a strategic necessity that delivers the critical space capabilities our warfighters depend on to fight and win.”
William Hartung, a senior research fellow at the Quincy Institute for Responsible Statecraft, told The Intercept: “The Musk meeting with Hegseth is just the latest example of the inherent conflict of interest in letting a major Pentagon contractor review the department’s budget and suggest major changes.”
Elon Musk defended SpaceX’s government contracts during a press briefing at the Oval Office in February: “If you see any contract where it was awarded to SpaceX and it wasn’t by far the best value for money for the taxpayer, let me know, because every one of them was.”
