In a dramatic escalation of their online feud, President Donald Trump threatened to cancel billions of dollars’ worth of federal contracts with Elon Musk’s companies, warning that slashing Musk’s government subsidies would save “billions and billions of dollars” in the U.S. budget.
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According to Trump’s Truth Social post on Thursday, June 5:
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.”
Musk’s SpaceX currently holds multiple Pentagon and NASA contracts valued in the tens of billions, and his Starlink satellite service also contracts with various federal agencies. Trump’s threat comes after Musk publicly called Trump’s One Big Beautiful Bill Act a “disgusting abomination.”
Earlier that day, Trump told reporters in the Oval Office during a meeting with German Chancellor Friedrich Merz that he was “very surprised” and “very disappointed” in Musk.
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“I’ve always liked Elon. And so I was very surprised. You saw the words he had for me, and he hasn’t said anything about me that’s bad. I’d rather have him criticize me than the bill. Because the bill is incredible,” Trump said.
Musk, a major donor to Trump’s 2024 campaign—contributing roughly $250 million—responded on social media by claiming credit for Trump’s 2020 election win:
“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk wrote in reply to a video of Trump’s remarks. “Such ingratitude.”
Musk officially resigned from his role as head of the Department of Government Efficiency (DOGE) last Friday. During his brief tenure, he aimed to cut federal spending and streamline government operations.
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Political analysts say Trump’s move to threaten Musk’s contracts is unusual, given Musk’s history as a key campaign ally and former adviser. If Trump follows through, SpaceX could lose major launches funded by the U.S. military and NASA missions, including next-generation Starship development.
A White House spokesperson told The Washington Post that no formal decision has been made, but sources say Trump is seriously weighing the order. Industry insiders warn that canceling SpaceX contracts could disrupt national security and slow U.S. leadership in space exploration.
As the standoff continues, both parties show little sign of backing down. Trump insists the government can no longer subsidize what he called “ungrateful” billionaires, while Musk maintains his criticism is aimed solely at policy, not personal loyalty.
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