In a stunning escalation of their ongoing feud, President Donald Trump and billionaire Elon Musk have traded devastating blows over the U.S. budget deficit dispute, with Trump canceling federal contracts with Musk’s companies and Musk retaliating by announcing the decommissioning of SpaceX’s Dragon Space Platform.
The tit-for-tat actions, amplified through fiery social media exchanges, have sent shockwaves through political and aerospace circles, threatening U.S. space ambitions and economic stability.
The conflict, rooted in disagreements over the “One Big Beautiful Bill Act,” a tax-and-spending package that extends Trump’s 2017 tax cuts and raises the debt ceiling by $4 trillion, reached a boiling point on Thursday, 5 June, 2025.
Musk, who resigned as head of the Department of Government Efficiency (DOGE) on 30 May, 2025, has been a vocal critic of the bill, warning on X that its $2.4 trillion addition to the national debt is “crushingly unsustainable.” In a 4 June post, Musk wrote, “This bill is a betrayal of America’s future. Politicians who support it should be ashamed.”
Trump, stung by Musk’s criticism and his claim of being pivotal to the 2024 election, struck back. On 5 June, 2025, the White House announced the termination of all federal contracts with SpaceX, Tesla, and other Musk-led ventures, citing “disloyalty to America’s economic agenda.”
Trump took to Truth Social, declaring, “Elon Musk thinks he’s bigger than the USA. WRONG! No more contracts for his overrated companies. We’ll make space and cars GREAT without him!”
The move jeopardizes billions in NASA and Department of Defense contracts, including SpaceX’s critical role in ISS missions and Starlink’s support for military communications.
Musk’s response was swift and unprecedented. Hours later, he announced on X that SpaceX would decommission the Dragon Space Platform, a key orbital asset used for satellite deployment and scientific research, effective immediately.
“If the government wants to play games, so be it. Dragon Platform is offline. Good luck with your space program,
@realDonaldTrump
,” Musk posted, adding, “I built this country’s space future, and I can take it away.”
The decision, which Musk claimed was to “reallocate resources,” has raised alarms at NASA, with experts warning of disruptions to U.S. space operations.
The fallout has divided Washington. Senate Republicans like Rand Paul sided with Musk, with Paul posting on X, “Canceling SpaceX contracts is reckless. Musk’s innovation drives our space program. This is Trump shooting himself in the foot.” Meanwhile, House Speaker Mike Johnson defended Trump, arguing, “We can’t let billionaires hold our government hostage.”
Democrats, sensing opportunity, have capitalised on the chaos, with Senator Elizabeth Warren tweeting, “Trump’s tantrum just kneecapped our space program. Musk’s response is reckless, but this is what happens when egos run policy.”
The CBO projects the bill’s passage could push the deficit to $2.5 trillion, fueling Musk’s fiscal concerns. However, Trump’s allies argue the economic growth from tax cuts will offset costs.
As the Senate debates the bill, the Trump-Musk feud risks derailing U.S. space leadership and economic policy. With both sides digging in, reconciliation seems distant, leaving the nation to grapple with the consequences of this high-stakes power struggle.
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