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American Focus > Blog > Politics > Trump floats revoking Musk’s federal contracts
Politics

Trump floats revoking Musk’s federal contracts

Last updated: June 5, 2025 1:04 pm
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Trump floats revoking Musk’s federal contracts
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Trump’s Tensions with Musk Reach New Heights

In an unexpected twist of events, President Donald Trump has escalated his public feud with Elon Musk, the world’s wealthiest individual and once a close ally. On Thursday, Trump threatened to cut federal contracts and subsidies tied to Musk’s enterprises, a move that could have significant financial implications.

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump expressed on his social media platform Thursday afternoon, adding an air of surprise at President Biden’s inaction on the matter.

The relationship between Trump and Musk has soured dramatically since Musk’s departure from the White House last week. The public fallout began when Musk criticized Trump’s ambitious domestic policy package on Tuesday, leading to a series of retaliatory remarks from both parties. Musk has continued to provoke Trump, naming him directly in his comments earlier that day, prompting a response from Trump who criticized Musk during a press briefing from the Oval Office.

While Trump’s statements from the White House were less harsh compared to his social media rants, they still reflected a sense of betrayal. “Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk countered on X, the social media platform he owns, lamenting what he perceived as ingratitude.

Musk’s ventures are heavily intertwined with federal funding; SpaceX is a key contractor for NASA, and Tesla has benefited from clean energy subsidies that are now in jeopardy as Republicans seek cuts in their reconciliation efforts.

See also  Fact Sheet: President Donald J. Trump Prioritizes Harnessing American AI Innovation to Unlock Cures for Pediatric Cancer

In his social media posts, Trump remarked, “Elon was ‘wearing thin,’ I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!”

Musk’s retort was swift: “Such an obvious lie. So sad.”

Historically, Trump has praised Tesla, largely due to his close ties with Musk. In March, amid public backlash related to job cuts at Tesla, Trump showcased various Tesla models at a makeshift car show on the White House lawn, later even purchasing a Tesla as a gesture of support.

Trump’s approach has often involved leveraging executive power against entities he perceives as acting out of line. He has previously withheld billions in federal grants from leading universities, including Harvard, as a form of punishment over alleged antisemitism and civil rights violations. Moreover, he has secured lucrative deals with law firms wary of his threats to disrupt their business.

As this public spat continues to unfold, it raises questions about the ramifications for federal funding and the broader implications for innovative businesses reliant on government contracts. In an era where alliances can shift as quickly as social media posts, the stakes for both Trump and Musk are escalating rapidly.

TAGGED:contractsFederalFloatsMusksRevokingTrump
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