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Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
SpaceX headquarters is shown in Hawthorne, California, on June 5, 2025. (REUTERS)
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Updated 7 min 23 sec ago

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
  • Trump threatens to cancel Musk companies’ contracts amid tax cut bill dispute
  • Musk says SpaceX will decommission spacecraft used by NASA

WASHINGTON: About $22 billion worth of SpaceX’s government contracts is at risk and multiple US space programs could face dramatic changes in the fallout of Elon Musk and President Donald Trump’s explosive feud on Thursday.
The disagreement, rooted in Musk’s criticism of Trump’s tax-cut and spending legislation that began last week, quickly spiraled out of control. Trump lashed out at Musk when the president spoke in the Oval Office. Then in a series of X posts, Musk launched barbs at Trump, who threatened to terminate government contracts with Musk’s companies.
Taking the threat seriously, Musk said he would begin “decommissioning” SpaceX’s Dragon spacecraft used by NASA. Under a roughly $5 billion contract, the craft has been the agency’s only US vessel capable of carrying astronauts to and from the International Space Station, making Musk’s company a critical element of the US space program.




In this photo illustration, social media posts by US President Donald Trump and Elon Musk are displayed on a smartphone on June 05, 2025. (Getty Images via AFP)

The feud raised questions about how far Trump, an often unpredictable force who has intervened in past procurement efforts, would go to punish Musk, who until last week headed Trump’s initiative to downsize the federal government.
If the president prioritized political retaliation and canceled billions of dollars worth of SpaceX contracts with NASA and the Pentagon, it could slow US space progress.
NASA press secretary Bethany Stevens declined to comment on SpaceX, but said: “We will continue to work with our industry partners to ensure the president’s objectives in space are met.”
Musk and Trump’s tussle ruptured an unprecedented relationship between a US president and industry titan that had yielded some key favors for SpaceX: a proposed overhaul of NASA’s moon program into a Mars program, a planned effort to build a gigantic missile defense shield in space, and the naming of an Air Force leader who favored SpaceX in a contract award.
Taking Dragon out of service would likely disrupt the ISS program, which involves dozens of countries under a two-decade-old international agreement. But it was unclear how quickly such a decommissioning would occur. NASA uses Russia’s Soyuz spacecraft as a secondary ride for its astronauts to the ISS.

SpaceX’s rise
SpaceX rose to dominance long before Musk’s foray into Republican politics last year, building formidable market share in the rocket launch and satellite communications industries that could shield it somewhat from Musk’s split with Trump, analysts said.
“It fortunately wouldn’t be catastrophic, since SpaceX has developed itself into a global powerhouse that dominates most of the space industry, but there’s no question that it would result in significant lost revenue and missed contract opportunities,” said Justus Parmar, CEO of SpaceX investor Fortuna Investments.
Under Trump in recent months, the US space industry and NASA’s workforce of 18,000 have been whipsawed by looming layoffs and proposed budget cuts that would cancel dozens of science programs, while the US space agency remains without a confirmed administrator.
Trump’s nominee for NASA administrator, Musk ally and billionaire private astronaut Jared Isaacman, appeared to be an early casualty of Musk’s rift with the president when the White House abruptly removed him from consideration over the weekend, denying Musk his pick to lead the space agency.

Trump on Thursday explained dumping Isaacman by saying he was “totally Democrat.”
Musk’s quest to send humans to Mars has been a critical element of Trump’s space agenda. The effort has threatened to take resources away from NASA’s flagship effort to send humans back to the moon.
Trump’s budget plan sought to cancel Artemis moon missions beyond its third mission, effectively ending the over-budget Space Launch System rocket used for those missions.
But the Senate Commerce Committee version of Trump’s bill released late on Thursday would restore funding for missions four and five, providing at least $1 billion annually for SLS through 2029.
Since SpaceX’s rockets are a less expensive alternative to SLS, whether the Trump administration opposes the Senate’s changes in the coming weeks will give an indication of Musk’s remaining political power.
SpaceX, founded in 2002, has won $15 billion worth of contracts from NASA for the company’s Falcon 9 rockets and development of SpaceX’s Starship, a multipurpose rocket system tapped to land NASA astronauts on the moon this decade.
The company has also won billions of dollars to launch a majority of the Pentagon’s national security satellites into space while it builds a massive spy satellite constellation in orbit for a US intelligence agency.
In addition to not being in US interests, former NASA Deputy Administrator Lori Garver said canceling SpaceX’s contracts would probably not be legal.
But she also added, “A rogue CEO threatening to decommission spacecraft, putting astronauts lives at risk, is untenable.”


Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
Updated 1 min 37 sec ago

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program

Musk-Trump breakup puts billions in SpaceX contracts at risk, jolting US space program
  • Trump threatens to cancel Musk companies’ contracts amid tax cut bill dispute
  • Musk says SpaceX will decommission spacecraft used by NASA

WASHINGTON: About $22 billion worth of SpaceX’s government contracts is at risk and multiple US space programs could face dramatic changes in the fallout of Elon Musk and President Donald Trump’s explosive feud on Thursday.
The disagreement, rooted in Musk’s criticism of Trump’s tax-cut and spending legislation that began last week, quickly spiraled out of control. Trump lashed out at Musk when the president spoke in the Oval Office. Then in a series of X posts, Musk launched barbs at Trump, who threatened to terminate government contracts with Musk’s companies.
Taking the threat seriously, Musk said he would begin “decommissioning” SpaceX’s Dragon spacecraft used by NASA. Under a roughly $5 billion contract, the craft has been the agency’s only US vessel capable of carrying astronauts to and from the International Space Station, making Musk’s company a critical element of the US space program.

In this photo illustration, social media posts by US President Donald Trump and Elon Musk are displayed on a smartphone on June 05, 2025. (Getty Images via AFP)

The feud raised questions about how far Trump, an often unpredictable force who has intervened in past procurement efforts, would go to punish Musk, who until last week headed Trump’s initiative to downsize the federal government.
If the president prioritized political retaliation and canceled billions of dollars worth of SpaceX contracts with NASA and the Pentagon, it could slow US space progress.
NASA press secretary Bethany Stevens declined to comment on SpaceX, but said: “We will continue to work with our industry partners to ensure the president’s objectives in space are met.”
Musk and Trump’s tussle ruptured an unprecedented relationship between a US president and industry titan that had yielded some key favors for SpaceX: a proposed overhaul of NASA’s moon program into a Mars program, a planned effort to build a gigantic missile defense shield in space, and the naming of an Air Force leader who favored SpaceX in a contract award.
Taking Dragon out of service would likely disrupt the ISS program, which involves dozens of countries under a two-decade-old international agreement. But it was unclear how quickly such a decommissioning would occur. NASA uses Russia’s Soyuz spacecraft as a secondary ride for its astronauts to the ISS.

SpaceX’s rise
SpaceX rose to dominance long before Musk’s foray into Republican politics last year, building formidable market share in the rocket launch and satellite communications industries that could shield it somewhat from Musk’s split with Trump, analysts said.
“It fortunately wouldn’t be catastrophic, since SpaceX has developed itself into a global powerhouse that dominates most of the space industry, but there’s no question that it would result in significant lost revenue and missed contract opportunities,” said Justus Parmar, CEO of SpaceX investor Fortuna Investments.
Under Trump in recent months, the US space industry and NASA’s workforce of 18,000 have been whipsawed by looming layoffs and proposed budget cuts that would cancel dozens of science programs, while the US space agency remains without a confirmed administrator.
Trump’s nominee for NASA administrator, Musk ally and billionaire private astronaut Jared Isaacman, appeared to be an early casualty of Musk’s rift with the president when the White House abruptly removed him from consideration over the weekend, denying Musk his pick to lead the space agency.

 

Trump on Thursday explained dumping Isaacman by saying he was “totally Democrat.”
Musk’s quest to send humans to Mars has been a critical element of Trump’s space agenda. The effort has threatened to take resources away from NASA’s flagship effort to send humans back to the moon.
Trump’s budget plan sought to cancel Artemis moon missions beyond its third mission, effectively ending the over-budget Space Launch System rocket used for those missions.
But the Senate Commerce Committee version of Trump’s bill released late on Thursday would restore funding for missions four and five, providing at least $1 billion annually for SLS through 2029.
Since SpaceX’s rockets are a less expensive alternative to SLS, whether the Trump administration opposes the Senate’s changes in the coming weeks will give an indication of Musk’s remaining political power.
SpaceX, founded in 2002, has won $15 billion worth of contracts from NASA for the company’s Falcon 9 rockets and development of SpaceX’s Starship, a multipurpose rocket system tapped to land NASA astronauts on the moon this decade.
The company has also won billions of dollars to launch a majority of the Pentagon’s national security satellites into space while it builds a massive spy satellite constellation in orbit for a US intelligence agency.
In addition to not being in US interests, former NASA Deputy Administrator Lori Garver said canceling SpaceX’s contracts would probably not be legal.
But she also added, “A rogue CEO threatening to decommission spacecraft, putting astronauts lives at risk, is untenable.”


Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait
Updated 06 June 2025

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Harvard files legal challenge over Trump’s ban on foreign students. Overseas, admitted students wait

Winning admission to Harvard University fulfilled a longtime goal for Yonas Nuguse, a student in Ethiopia who endured a war in the country’s Tigray region, Internet and phone shutdowns, and the COVID-19 pandemic — all of which made it impossible to finish high school on time.
Now, it’s unclear if he will make it this fall to the Ivy League campus in Cambridge, Massachusetts. He and other admitted students around the world are anxiously tracking the school’s feud with the Trump administration, which is seeking to keep it from enrolling international students.
On Thursday, Harvard challenged President Donald Trump’s latest move to bar foreign students from entering the US to attend the college, calling it illegal retaliation for Harvard’s rejection of White House demands. In an amended lawsuit filed Thursday, Harvard said the president was attempting an end-run around a previous court order. Last month, a federal judge blocked the Department of Homeland Security from revoking Harvard’s certification to host foreign students.
Admission to Harvard, then months of uncertainty
Increasingly, the nation’s oldest and best-known university has attracted some of the brightest minds from around the world, with international students accounting for one-quarter of its enrollment. As Harvard’s fight with the administration plays out, foreign students can only wait to find out if they’ll be able to attend the school at all. Some are weighing other options.
For Nuguse, 21, the war in Ethiopia forced schools to close in many parts of the province. After schooling resumed, he then took a gap year to study and save money to pay for his TOEFL English proficiency test in Addis Ababa, Ethiopia’s capital.
“The war affected me a great deal and when I found out the news that I was accepted to Harvard, I was ecstatic. I knew it was a proud moment for my family, teachers, mentors and friends, who were instrumental in my achievement,” he said.
The following months have been filled with uncertainty. On Wednesday, Trump signed a directive seeking to block US entry for Harvard’s international students, which would block thousands who are scheduled to come to the campus in Cambridge, Massachusetts, for summer and fall terms.
Harvard’s court challenge a day later attacked Trump’s legal justification for the action — a federal law allowing him to block a “class of aliens” deemed detrimental to the nation’s interests. Targeting only those who are coming to the US to study at Harvard doesn’t qualify as a “class of aliens,” Harvard said in its filing.
“The President’s actions thus are not undertaken to protect the ‘interests of the United States,’ but instead to pursue a government vendetta against Harvard,” the university wrote.
In the meantime, Harvard is making contingency plans so students and visiting scholars can continue their work at the university, President Alan Garber said in a message to the campus and alumni.
“Each of us is part of a truly global university community,” Garber said Thursday. “We know that the benefits of bringing talented people together from around the world are unique and irreplaceable.”
Crackdown on international students affects interest in the US
The standoff with Harvard comes as the administration has been tightening scrutiny of student visas nationwide. Thousands of students around the country abruptly lost permission to be in the US this spring before the administration reversed itself, and Secretary of State Marco Rubio announced last week the US would “aggressively revoke” visas for students from China.
While many admitted students say they’re waiting to find out if they can come to the US, prospective students still in high school are starting to look elsewhere, said Mike Henniger, CEO of Illume Student Advisory Services.
“It is one blow after another,” said Henniger, who works with colleges in the US, Canada and Europe to recruit international students. “At this point, international student interest in the US has basically dropped to nil.”
The future of Harvard’s roughly 7,000 international students has been hanging in the balance since the Department of Homeland Security first moved to block its foreign enrollment on May 22.
For many, the twists and turns have been exhausting. Jing, a 23-year-old master’s student, is currently completing an internship in China this summer, and unsure if he can reenter the US for the fall semester.
“It is tiring, we all feel numb now. Trump just makes big news headlines once every few days since he got back to the White House,” said Jing, who agreed to speak under his family name out of concern about retaliation from the Trump administration.
Jing said he is going to watch and see what happens for now, in case the move against international students is a negotiating tactic that does not stick.
The possibility that Trump could block foreign enrollment at other colleges only raises the uncertainty for students planning to pursue their education overseas, said Craig Riggs, who has been working in international education for about 30 years and is the editor of ICEF Monitor. He said he urges families to consult carefully with advisers and not to overreact to the day’s headlines.
“The rules under which students would make this huge decision to devote years of their lives and quite a bit of money to studying at Harvard have been shown to change quite quickly,” Riggs said.
An aspiring economist, Nuguse was the only student accepted to Harvard this year from Kalamino Special High School, which caters to gifted students from underprivileged backgrounds from across Tigray.
After receiving acceptances also to Columbia University and Amherst College, Nuguse chose Harvard, which he had long dreamed of attending. He said he hopes it will work out to attend Harvard.
Nuguse was granted a visa to study at Harvard, and he worries it might be too late to reverse his decision and attend another university anyway. He received an email from Harvard last week, telling him to proceed with his registration and highlighting a judge’s order in Harvard’s favor in the dispute over foreign enrollment.
“I hope the situation is temporary and I can enroll on time to go on and realize my dream far from reality in Ethiopia,” he said.


WHO urges ‘urgent protection’ of key Gaza hospitals

WHO urges ‘urgent protection’ of key Gaza hospitals
Updated 06 June 2025

WHO urges ‘urgent protection’ of key Gaza hospitals

WHO urges ‘urgent protection’ of key Gaza hospitals
  • The WHO said both hospitals are already operating “above their capacity,” with patients suffering life-threatening injuries arriving amid a “dire shortage of essential medicines and medical supplies”

GENEVA: The World Health Organization on Thursday called for the “urgent protection” of two of the last hospitals remaining in the Gaza Strip, warning that the territory’s health system is “collapsing.”
The WHO said the Nasser Medical Complex and Al-Amal Hospital risk becoming “non-functional” because of restrictions on aid and access routes, further damaging a health system already battered by months of war.
“There are already no hospitals functioning in the north of Gaza. Nasser and Amal are the last two functioning public hospitals in Khan Younis, where currently most of the population is living,” the UN agency said in a statement on X.
“Without them, people will lose access to critical health services,” it said.
The WHO added that closure of the two hospitals would eliminate 490 beds and reduce Gaza’s hospital capacity to less than 1,400 beds — 40 percent below pre-war levels — for a population of two million people.
The WHO said the hospitals have not been told to evacuate but lie within or just outside an Israeli-declared evacuation zone announced on June 2.
Israeli authorities have told Gaza’s health ministry that access routes to the two hospitals will be blocked, the WHO said.
As a result, it will be “difficult, if not impossible” for medical staff and new patients to reach them, it said.
“If the situation further deteriorates, both hospitals are at high risk of becoming non-functional, due to movement restrictions, insecurity, and the inability of WHO and partners to resupply or transfer patients,” the organization said.
The WHO said both hospitals are already operating “above their capacity,” with patients suffering life-threatening injuries arriving amid a “dire shortage of essential medicines and medical supplies.”
It warned the closure of Nasser and Al-Amal would have dire consequences for patients in need of surgical care, intensive care, blood bank and transfusion services, cancer care and dialysis.
After nearly 20 months of war triggered by Hamas’s October 7, 2023 attack on Israel, Gaza is mired in one of the world’s gravest humanitarian crises, with civilians enduring relentless bombardment, mass displacement and severe hunger.
 

 


Gaza aid logistics company funded by Chicago private equity firm

Palestinian boys carry pots as the queue at a hot meal distribution point in Nuseirat in the central Gaza Strip, June 4, 2025.
Palestinian boys carry pots as the queue at a hot meal distribution point in Nuseirat in the central Gaza Strip, June 4, 2025.
Updated 06 June 2025

Gaza aid logistics company funded by Chicago private equity firm

Palestinian boys carry pots as the queue at a hot meal distribution point in Nuseirat in the central Gaza Strip, June 4, 2025.
  • Israel blocked almost all aid into Gaza for 11 weeks until May 19, and has since only allowed limited deliveries in, mostly managed by the new GHF operation
  • SRS is run by a former CIA official named Phil Reilly, but its ownership has not previously been disclosed

WASHINGTON: A Chicago-based private equity firm - controlled by a member of the family that founded American publishing company Rand McNally - has an "economic interest" in the logistics company involved in a controversial new aid distribution operation in Gaza.
McNally Capital, founded in 2008 by Ward McNally, helped "support the establishment" of Safe Reach Solutions, a McNally Capital spokesperson told Reuters. SRS is a for-profit company established in Wyoming in November, state incorporation records show. It is in the spotlight for its involvement with the U.S.- and Israeli-backed Gaza Humanitarian Foundation, which last week started distributing aid in the war-torn Palestinian enclave. The foundation paused work on Wednesday after a series of deadly shootings close to its operations and has suffered from the departure of senior personnel.

HIGHLIGHTS

• McNally Capital has economic interest in Safe Reach Solutions

• GHF aid distribution halted after deadly shootings near operations

• U.N. and aid groups refuse to work with GHF, citing lack of neutrality

"McNally Capital has provided administrative advice to SRS and worked in collaboration with multiple parties to enable SRS to carry out its mission," the spokesperson said. "While McNally Capital has an economic interest in SRS, the firm does not actively manage SRS or have a day-to-day operating role."
SRS is run by a former CIA official named Phil Reilly, but its ownership has not previously been disclosed. Reuters has not been able to establish who funds the newly created foundation.
The spokesperson did not provide details of the scale of the investment in SRS by McNally Capital, which says it has $380 million under management.
McNally Capital founder Ward McNally is the great great great grandson of the co-founder of Rand McNally. The McNally family sold the publishing company in 1997.
A spokesperson for SRS confirmed it worked with the foundation, also known as GHF, but did not answer specific questions about ownership.
GHF, which resumed aid distribution on Thursday, did not respond to a request for comment
While Israel and the United States have both said they don't finance the operation, they have pushed the United Nations and international aid groups to work with it, arguing that aid distributed by a long-established U.N. aid network was diverted to Hamas. Hamas has denied that.
Israel blocked almost all aid into Gaza for 11 weeks until May 19, and has since only allowed limited deliveries in, mostly managed by the new GHF operation. This week GHF pressed Israel to boost civilian safety beyond the perimeter of its distribution sites after Gazan health officials said at least 27 Palestinians were killed and dozens wounded by Israeli fire near one of the food distribution sites on Tuesday, the third consecutive day of chaos and bloodshed to blight the aid operation.
The Israeli military said its forces on Tuesday had opened fire on a group of people they viewed as a threat after they left a designated access route near the distribution center in Rafah. It said it was investigating what had happened.
The U.N and most other aid groups have refused to work with GHF because they say it is not neutral and that the distribution model militarizes aid and forces displacement.
The SRS spokesperson said in a statement that under Reilly's leadership, "SRS brings together a multidisciplinary team of experts in security, supply chain management, and humanitarian affairs."
McNally Capital has investments in defense contracting companies. Among the firms it acquired was Orbis Operations, a firm that specializes in hiring former CIA officers. Orbis did not return calls for comment. Reilly used to work for Orbis.

 


Pilgrims depart Muzdalifah at midnight for stoning ritual in Mina

Pilgrims depart Muzdalifah at midnight for stoning ritual in Mina
Updated 06 June 2025

Pilgrims depart Muzdalifah at midnight for stoning ritual in Mina

Pilgrims depart Muzdalifah at midnight for stoning ritual in Mina
  • Each pilgrim casts seven pebbles at Jamrat al-Aqaba, symbolizing the rejection of evil. The ritual is repeated over the next two days at all three Jamarat pillars

RIYADH: The early hours of Friday saw pilgrims start the journey from Muzdalifah to Mina, where they will perform one of Hajj’s most symbolic rituals — the stoning of the Jamarat, which marks the beginning of Eid Al-Adha and commemorates Prophet Ibrahim’s rejection of Satan.

Following a night of worship and rest, where the travelers combined and shortened the Maghrib and Isha prayers and collected pebbles for the ritual, the movement to Mina began shortly after midnight.

Saudi authorities orchestrated operations with meticulous precision, ensuring pilgrims moved in structured waves to prevent overcrowding and followed routes mapped out in advance by the Ministry of Hajj and Umrah in coordination with the Ministry of Interior.

Security personnel, crowd control units and volunteer guides lined the roads to ensure pilgrims — many of whom were elderly or physically exhausted — could travel safely.

Transportation was provided by a fleet of buses operating on strict schedules. Many people also used the Al-Mashaaer Al-Mugaddassah Metro, the dedicated Hajj-only rail system which loops between Mina, Arafat, and Muzdalifah and can carry up to 72,000 passengers per hour. According to Saudi Press Agency, the nine-station line significantly reduced surface congestion and supported the Kingdom’s strategy for a safe and sustainable Hajj.

Upon arrival in Mina, pilgrims proceeded to Jamarat Bridge, a purpose-built, multi-level structure designed to accommodate millions performing the stoning ritual.

Each pilgrim casts seven pebbles at Jamrat al-Aqaba, symbolizing the rejection of evil. The ritual is repeated over the next two days at all three Jamarat pillars.

The millions of pebbles fall into the Jamarat’s basement, which is 15 meters deep, where they are collected by conveyor belts.

They are then sifted, washed to remove impurities, and transferred to storage vehicles. Ahmed Al-Subhi, a representative of Kidana Development Co., which manages the holy sites, said bags of pebbles were prepared in advance and distributed at more than 300 contact points in Muzdalifah and Mina.

The process is part of a broader system designed to reduce the ritual’s environmental impact and preserve its spiritual symbolism.

To ensure smooth flow at the Jamarat, the bridge is equipped with advanced surveillance systems, ventilation units, emergency exits and designated pathways for groups and individuals.

Entry and exit are managed through RFID-based Nusuk cards and digital crowd-tracking systems operated by the Saudi Data and AI Authority.

According to the General Authority for Statistics, 1,673,230 pilgrims are performing Hajj this year, with some 1,506,576 coming from outside the Kingdom.