As part of his ‘department of government efficiency’ (Doge) cuts, Elon Musk’s SpaceX and Starlink contracts are creating new revenue streams for the tech CEO, former employees warn. The move has raised concerns about privatization of space operations and conflict of interest questions.
A SpaceX Starship spacecraft atop a Super Heavy booster is launched on its eighth test in Brownsville, Texas, on 6 March 2025. Photograph: Joe Skipper/Reuters
Elon Musk‘s Doge cuts allow him to cash in with lucrative SpaceX and Starlink contracts, former employees of the National Oceanic and Atmospheric Administration (NOAA) warn.
Elon Musk is a South African-born entrepreneur, inventor, and business magnate.
He co-founded 'PayPal' , SpaceX, Neuralink, and The Boring Company.
Musk's innovative ventures have transformed industries such as space exploration, electric cars, and renewable energy.
With a net worth of over $200 billion, he is one of the richest individuals in the world.
His vision for a sustainable future has inspired millions, with ambitious projects like reusable rockets and high-speed transportation systems.
Tech CEO accused of aiming to privatize space and satellite operations as federal agencies reportedly seek contracts
As part of his ‘department of government efficiency’ (Doge), Musk has drastically reduced spending at NOAA, a move that critics say is driven by greed and corruption. The agency’s activities touch the basic functions of daily life, including dependable cellphone service, internet connectivity, and weather forecasting.
Privatization of Space Operations
Musk‘s Starlink satellite internet company has nearly 6,000 satellites in low-earth orbit, providing broadband internet services to at least 2.7 million people in 100 countries. The company is also working closely with the Traffic Coordination System for Space (Traccs), a program that manages thousands of satellites and prevents near-collisions.
However, former NOAA employees say that Musk‘s agenda may not always align with the nation’s interests. They claim that SpaceX has no interest in privatizing or taking over Traccs prior to Trump‘s re-election but have now laid off all but one Traccs member, effectively crippling a sorely needed operation.
Founded in 2002 by Elon Musk, SpaceX is a private aerospace manufacturer and space transport services company.
With the goal of reducing space transportation costs and enabling the colonization of Mars, SpaceX has developed several advanced technologies, including reusable rockets.
The company's flagship vehicle, Falcon 9, has successfully launched numerous satellites and spacecraft into orbit.
In 2020, SpaceX made history by becoming the first private company to launch a crewed mission to the International Space Station.
Conflict of Interest
The situation raises conflict of interest questions for one of Trump‘s closest allies who backed him with millions of dollars of funding in the 2024 election. ‘slash spending,’ but critics say he is using his position to steer government funding toward his companies.
NOAA satellites in lower-earth orbit are largely utilized to forecast weather three to seven days out, and the data is given for free to weather forecasting providers. However, private industry’s data and forecasts are of extremely poor quality compared to those from NOAA, a former employee said.
The National Oceanic and Atmospheric Administration (NOAA) is a US government agency responsible for understanding and protecting the environment.
Founded in 1970, NOAA focuses on weather forecasting, oceanic research, and conservation efforts.
With a budget of over $5 billion annually, NOAA operates a network of satellites, ships, and ground-based monitoring systems to track climate patterns, monitor marine life, and predict natural disasters.
The data is ‘highly reliable, 24/7, no breakdowns, no ifs, ands or buts,’ a former agency employee said. If NOAA satellites fail, explode, or crash, then people who rely on that data may die, or serious economic damage may be inflicted.
Radio Frequency Privatization
SpaceX, telecom giants, and other industries are lobbying the federal government to auction off valuable bands on the radio frequency spectrum, which is essential for wireless communication. A large part of NOAA‘s forecasts stem from its satellites monitoring water vapor movement in the atmosphere, and the agency owns the radio frequencies at which vapor vibrates.
If the FCC sells bands too close to that frequency, potential interference could impede satellite function and disrupt reliable weather forecasting and cellphone use. ‘Starlink wants more and more spectrum, and you hope [the FCC] would not be stupid enough to auction off the bands next to where water vibrates,’ an employee said.
Concerns About Private Industry’s Data Quality
Private industry’s data and forecasts are of extremely poor quality compared to those from NOAA, a former employee said. ‘The risk of having outages is so significant because that data is used all the time for everything, and for far more than people realize,’ a former employee said.
Musk, by contrast, has a mission of eliminating redundancies and finding efficiencies, but former agency employees noted his rockets and satellites have a history of crashing and exploding.
