Trump Looks to Sideline SpaceX from $175 Billion Defense Project: Report

The Trump administration is reportedly looking to shift away from Elon Musk’s SpaceX for its ambitious $175 billion “Golden Dome” missile defense system, according to a report from Reuters. The move comes as tensions between former allies Trump and Musk reach new heights, culminating in a very public falling out in early June.

The Golden Dome initiative, billed as a larger and more advanced version of Israel’s Iron Dome, aims to create a layered defense shield in space using a vast satellite network. While SpaceX currently dominates the space launch market — having launched over 9,000 Starlink satellites (including “Starshield” satellites geared towards national security efforts) and holding key contracts with the Pentagon and NASA — the administration is now actively courting alternative players, including Amazon’s Project Kuiper and legacy defense giants like Lockheed Martin, Northrop Grumman, and L3Harris.

Sources say the Pentagon has already reached out to Project Kuiper, despite its current reliance on SpaceX for satellite launches. While Kuiper has only launched 78 satellites of its planned 3,000-strong constellation, its potential military applications — such as communications and missile tracking — make it a good fit. The irony? Kuiper’s rockets still need SpaceX to get to orbit.

The pivot also follows a reported White House audit of all SpaceX government contracts, aimed at trimming them amid Trump’s growing frustrations with Musk and his companies. However, the audit ultimately found that SpaceX remains too vital to NASA, the Department of Defense, and other government agencies to cut.

Newer players like Rocket Lab and Stoke Space may also get a shot, as Pentagon officials suggest future Golden Dome launches will be put out to bid. Space Force General Michael Guetlein, confirmed by the Senate last week, has been tasked with delivering a full implementation plan for Golden Dome within 120 days.

Still, SpaceX’s launch capabilities and track record make it hard to beat — regardless of who’s in the White House.