Trump threatens to terminate federal funding for Elon Musk’s companies amid public dispute

President Donald Trump has threatened to withdraw billions of dollars in federal subsidies and contracts awarded to Elon Musk’s companies as their increasingly bitter feud over a major tax bill spills into the public domain.

In a post on his Truth Social platform, Trump wrote, “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 aerospace firm, SpaceX, holds substantial contracts with the U.S. government, particularly with NASA and the Pentagon.

In addition, SpaceX’s Starlink satellite network has significant federal involvement. Terminating these agreements could deal a major financial blow to Musk’s operations.

The rift intensified following comments from Trump during an Oval Office meeting with German Chancellor Friedrich Merz on Thursday.

Trump expressed dismay at Musk’s public criticism of his tax legislation, despite the billionaire’s previous support.

“I’ve always liked Elon. And so I was very surprised,” Trump said. “You saw the words he had for me, and he hasn’t said anything about me that’s bad. I’d rather have him criticise me than the bill. Because the bill is incredible.”

Musk responded swiftly on social media, asserting that his influence was critical to Trump’s 2024 re-election.

“Without me, Trump would have lost the election, Dems would control the House and the Republicans would be 51-49 in the Senate,” Musk posted, adding, “Such ingratitude.”

Musk recently stepped down from his federal position as head of the Department of Government Efficiency, where he had led efforts to reduce federal spending. His departure came just days before the public fallout with the president reached new heights.

The escalating feud now threatens to impact major federal projects tied to Musk’s companies.