SpaceX congressional scrutiny looms
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The new Democratic congressional majority is vowing a slew of investigations into Elon Musk's business empire — potentially putting the military's vast portfolio of contracts with SpaceX under the microscope.
Why it matters: Attempts to hold Musk accountable will run up against a basic reality that for critical military and space missions, the government has no replacement for SpaceX — and likely won't for years.
The big picture: How the military became so reliant on a single company may itself be an area of inquiry, congressional aides and former U.S. officials say.
- "There's enough questionable appearances here that I think it's in everybody's interest to go find out what really happened," a former Pentagon official said, referring to Musk's political influence and the federal contracts SpaceX has accrued.
- Practically, it will be years before SpaceX competitors offer technology that allows the Defense Department to diversify to non-Musk companies.
- Musk this week almost dared the government to try, writing on X that he was "happy to cancel any that the government doesn't want. Just say the word!"
By the numbers: Since Musk left the U.S. government as an adviser in May 2025, SpaceX has netted at least $10 billion in new contracts, according to a new report from the left-leaning nonprofit Democracy Defenders Fund.
- That includes two major Space Force contracts: One for nearly $2.3 billion to build a sprawling network of communication satellites and another nearly $4.2 billion award to develop a space-based missile tracking radar.
- In September, NASA awarded $946 million to SpaceX for three missions to transport astronauts to the International Space Station.
- Nearly 94% of all orbital U.S. launches were from SpaceX last year, per the American Enterprise Institute's data. So far, in 2026, Musk's rockets have accounted for roughly 90% of those missions.
Zoom in: The new Congress is likely to investigate Musk's role in throttling Starlink over Ukraine and the circumstances surrounding SpaceX contracts.
- "How many hearings have the Republicans held focusing on SpaceX and its abuses of its contracts or its actions in Ukraine? Zero," one Democratic Senate aide said.
- The Senate Armed Services Committee, which helps craft defense spending policy, is also likely "to have a different posture towards how [the Defense Department] handles its SpaceX contracts" starting in January, the aide said.
What they're saying: Clayton Swope, a senior space fellow at the Center for Strategic and International Studies, said there's been a long-standing fear in the defense community that the military has put "all eggs in the SpaceX basket."
- "That's always been kind of an underlying current, even within the Pentagon, that we're very uncomfortable with reliance on one vendor," Swope said. "But, then, here we are."
State of play: Despite those concerns, SpaceX's satellite and rocket technology has allowed the U.S. to maintain its superiority in space.
- But competitors that lag behind now see an opening for the Pentagon to adopt alternatives.
- SpaceX's looming retirement of the Falcon 9 rocket, for example, has reportedly left the Space Force in a bind for future launches.
- This week, the Defense Department's Office of Strategic Capital signed a $150 million conditional loan commitment with SpaceX competitor Rocket Lab "to meet growing commercial and national security demand for access to space."
Yes, but: Dave Cavossa, the Commercial Space Federation's president, said "Starlink and Starshield are one-of-a-kind capabilities" and added that competitors, like Amazon Leo, are a year or two away from becoming operational.
- "SpaceX has built a massive lead today ... The new entrants have to run really hard to catch up," Cavossa said.
Reality check: Musk still has the firm backing of Trump and his allies.
- Shortly before the election, the president vowed to "protect" him amid Democratic scrutiny.
- New White House Chief of Staff Stephen Miller can now weigh in on Musk's government dealings after his wife left her role with SpaceX, The Atlantic reported.
- "He's untouchable," Fox News host Jesse Watters said of Musk this week. "He's reached a level in this country that, a subpoena? A hearing? It's nothing."
The White House and SpaceX did not respond to requests for comment.
The bottom line: Another former Pentagon official argued that the military's heavy reliance on Musk is precisely why he deserves to be investigated.
- "Strong national security requires actual competition to both keep costs competitive and to prevent amassing of power in any one individual or company," the person said.
