As whispers of Elon Musk stepping away from DOGE swirl through the halls of Washington, another massive development takes center stage. The Pentagon has just handed SpaceX, Blue Origin, and United Launch Alliance (ULA) a multibillion-dollar contract to launch some of America’s most classified satellites. And yes, Musk’s name is all over it.

While SpaceX might be best known for launching Teslas into orbit and sending astronauts to the ISS, its military business is quietly booming. On Friday, the U.S. Space Force awarded massive National Security Space Launch (NSSL) contracts to three private space giants — , (the Boeing-Lockheed joint venture), and .

Here's the breakdown of the deal:

The mission? Launching 50 of the U.S. military’s most sensitive satellites through 2029 — a move that shows just how much the Pentagon is leaning on the private sector for space dominance.

Here's where things get complicated. Elon Musk isn’t just collecting big government checks. As head of the Department of Government Efficiency (DOGE) under President Trump’s administration, he’s also leading efforts to slash federal spending — and it's hitting hard.

More than 60,000 civilian federal jobs are on the chopping block, and over 21,000 workers are already taking voluntary exit packages. These cuts are aimed at tightening the federal belt, with $800 million in contracts and grants now under review.

And yet, while entire programs like emissions reductions for Navy ships and AI equity research are being axed, SpaceX’s military ventures? Completely untouched.

That question is echoing loudly across Capitol Hill. Critics are pointing to a serious : Musk, a major Pentagon contractor, is also reviewing the Pentagon’s own budget through DOGE.

Stephen Semler from the Center for International Policy didn’t hold back, telling The Intercept,

“Musk and DOGE are ignoring the one place where you would actually find savings within the government.”

The timing is also raising eyebrows. Just a day after DOGE announced layoffs and cuts, Musk reportedly had a closed-door meeting with Defense Secretary Pete Hegseth, billed as a chat about "innovation, efficiencies & smarter production." Oh, and let’s not forget Musk’s $300 million donation to Trump's re-election campaign.

Coincidence? Some aren’t so sure.

According to Space Force leadership, it’s not just about the money — it’s about securing space superiority. Gen. Chance Saltzman, Chief of Space Operations, said:

“National Security Space Launch isn’t just a program; it’s a strategic necessity that delivers the critical space capabilities our warfighters depend on to fight and win.”

The idea here is simple: America can’t afford to fall behind in space tech, and launching these satellites is mission-critical. With SpaceX already dominating the launch market, some experts say the company has essentially become the default launch partner for the U.S. government.

And the numbers speak volumes — SpaceX now holds nearly $8 billion in Pentagon contracts and raked in $6.3 billion in total government deals in 2024 alone.

Elon Musk insists everything has been above board. Speaking from the Oval Office in February, he said:

“If you see any contract where it was awarded to SpaceX and it wasn’t by far the best value for money for the taxpayer, let me know, because every one of them was.”

But not everyone’s convinced. William Hartung from the Quincy Institute told The Intercept:

“The Musk meeting with Hegseth is just the latest example of the inherent conflict of interest in letting a major Pentagon contractor review the department's budget and suggest major changes.”

Meanwhile, NASA has started auditing SpaceX’s finances, reviewing years of payments and contracts including the Artemis lunar lander, ISS deorbiting tech, and astronaut cargo missions — where SpaceX has pocketed over $13 billion since 2015.

Over the next four years, SpaceX, Blue Origin, and ULA will carry out 50 launch missions, each loaded with critical national defense payloads. The task orders will roll out gradually through 2029 — a clear signal that space is now central to U.S. military planning.

As for DOGE’s budget cuts? Those will likely continue, sparking more debates over what counts as “wasteful spending” and what doesn’t. One thing's for sure: Musk’s influence over both the public and private sectors is only growing.

It’s a strange paradox — while federal workers are being asked to pack up and go, SpaceX’s star continues to rise. Elon Musk has managed to walk a fine line between cost-cutter and top contractor, innovator and insider. Whether that balance will hold in the long term is something we’ll all be watching closely — from Earth, or maybe from orbit.

It’s a multibillion-dollar contract to launch secret satellites for the U.S. Space Force using SpaceX.

Why is Elon Musk’s role in DOGE controversial?
Because he's cutting federal jobs while his companies get huge government contracts.