Quick summary
• Elon Musk’s SpaceX was awarded a $38.85 million NASA contract while his Department of Government Efficiency (DOGE) slashes billions from public services like education, health care, and cancer research.
• Critics, including attorney Will Stancil, accused Musk of benefiting from government contracts while cutting funding for essential programs, calling it a blatant conflict of interest.
• Musk denied wrongdoing, claiming SpaceX contracts provide the “best value” for taxpayers, but critics dismissed his response as a “cartoonishly stupid answer.”
• SpaceX and Tesla have received at least $18 billion in federal funding, while Tesla paid zero federal income tax in 2024 despite making $2.3 billion in profit.
• Rep. Ilhan Omar condemned Musk for protecting corporate subsidies while eliminating funding for cancer research, calling him a “greedy billionaire trying to rip off the American people.”
• Musk’s growing power at DOGE, combined with his control over X (formerly Twitter), allows him to shape government policy and suppress critics while promoting right-wing content.
• Progressive lawmakers and activists are calling for investigations into Musk’s financial conflicts of interest and increased oversight to prevent billionaires from manipulating government policy for personal gain.
Elon Musk’s SpaceX was awarded a $38.85 million NASA contract on Monday, even as Musk, in his capacity as head of the Department of Government Efficiency (DOGE), continues overseeing drastic federal budget cuts. This latest contract has intensified accusations of corporate favoritism and conflicts of interest, as critics question how Musk’s private companies continue to receive billions in taxpayer funding while crucial public services are slashed.
Public frustration boiled over when attorney and researcher Will Stancil posted on X:
“You’ll never believe who is still getting new government contracts while all the contracts at the Department of Education and USAID and other agencies are being nuked from orbit.”
Stancil had received a tip from an FAA employee and shared an image of the contract award information. The revelation has fueled growing concerns that Musk’s personal financial interests are influencing his decisions at DOGE, even as he denies any wrongdoing.
Speaking at a press conference in the Oval Office on Tuesday, Musk defended the contract, insisting that his leadership at DOGE does not affect government contracts awarded to SpaceX. He dismissed allegations of a conflict of interest, stating:
“You have to look at the individual contract. I’m not the one filing the contract, it’s people at SpaceX.”
Musk further argued that his company won the contract on merit:
“If you see any contract where it was awarded to SpaceX and it wasn’t by far the best value for the taxpayer, let me know – because every one of them was.”
His response, however, only amplified the backlash. One X user mocked his defense, calling it “a cartoonishly stupid answer.”
Musk’s denial of conflicts of interest does not erase the reality that his companies have received billions in taxpayer money. Over the past decade, SpaceX and Tesla have benefited from at least $18 billion in federal funding, and SpaceX alone secured $3.7 billion in contracts in the 2024 fiscal year. At the same time, Tesla paid zero federal income tax in 2024, despite generating $2.3 billion in income.
While SpaceX continues to win lucrative contracts, Musk’s work at DOGE has been marked by deep cuts to essential public services. Programs affected by Musk’s budget reductions include:
• Education research funding
• Hunger and famine relief programs
• Medicaid expansion and Affordable Care Act subsidies
• Environmental and climate initiatives
• Cancer research clinical trials
This contradiction has sparked intense criticism from progressive lawmakers, with Rep. Ilhan Omar (D-Minnesota) leading the charge. Omar blasted Musk’s willingness to protect contracts for his own companies while slashing research for life-saving treatments.
“So let me get this straight, he wants contracts for cancer research canceled but says let’s keep contracts for his company SpaceX to do research. Greedy billionaire trying to rip off the American people pretending to be altruistic is all I see,” Omar wrote on X.
Other lawmakers echoed Omar’s concerns, including Rep. Pramila Jayapal (D-Washington), who rebuked Musk’s claim that his budget cuts align with voter intentions:
“The people didn’t vote for you to cut off cancer research funding.”
Sen. Ed Markey (D-Massachusetts) further criticized the Republican strategy of preserving corporate welfare while gutting social spending:
“We have seen this Republican playbook before. They claim we must cut spending on education, on health care like Medicaid and the Affordable Care Act, on housing, on foreign aid, on climate solutions. But when it comes to defense contractors, they open the purse strings, pouring billions of dollars into the pockets of their well-connected friends.”
While Musk insists he is not directly responsible for government contract decisions, his position as both a public official and CEO of multiple companies raises serious ethical concerns. Even if Musk does not personally handle SpaceX contracts, he directly benefits from every taxpayer dollar awarded to his businesses.
Musk’s personal net worth has skyrocketed to nearly $400 billion, making him the wealthiest man on Earth. His fortune exceeds the entire annual budgets of major U.S. agencies, including those responsible for health, housing, and education.
At the same time, Musk continues to accumulate record-breaking compensation packages. Tesla shareholders recently approved a $56 billion pay package for Musk, which remains tied up in court challenges. Meanwhile, Europe’s largest pension fund announced that it was divesting its $585 million stake in Tesla, citing Musk’s “exceptionally high” pay and growing ethical concerns.
Omar seized on the news, writing:
“The greedy billionaire that Europe rejects is the same man the Republicans are imposing on the American people.”
Beyond his influence in government spending, Musk has leveraged his ownership of X (formerly Twitter) to shape public discourse. Since purchasing the platform, he has:
• Amplified right-wing content while suppressing progressive voices.
• Banned and censored left-wing activists and journalists who criticize him.
• Used his control of X to attack lawmakers and activists who oppose his policies.
Musk has also framed his budget cuts as a reflection of “what the people voted for,” even as Rep. Jayapal and others accuse him of executing an “administrative coup” by wielding power that was never granted to him by voters.
The controversy surrounding Musk’s latest SpaceX contract reflects broader concerns about corporate influence in government. The billionaire’s ability to enforce spending cuts that disproportionately affect working-class Americans while continuing to receive federal subsidies for his own businesses raises urgent questions about who truly benefits from Trump’s administration.
Lawmakers and advocacy groups are pushing for greater oversight and transparency in federal contracting to prevent billionaires from manipulating government policies for personal gain.
Meanwhile, progressive activists are calling for congressional investigations into Musk’s financial conflicts of interest and the role of DOGE in reshaping government priorities to benefit corporate elites.
The $38.85 million NASA contract awarded to Musk’s SpaceX while his own government office slashes public services has ignited national outrage. Musk, as both a government official and a CEO, stands to profit from decisions that he directly influences.
Lawmakers and advocacy groups are now demanding answers:
• Will Congress investigate Musk’s conflicts of interest?
• Can the courts intervene to stop billionaires from controlling public policy?
• Or will the U.S. government continue operating as a system built to serve its wealthiest elites?
Call your Congressmember today and ask them what they’re doing to stop Elon Musk’s coup.
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