Boeing’s Space Contracts Under Fire: Trump’s Threat to Musk Puts Rival SpaceX in the Spotlight

Category: News & Politics
Subcategory: U.S. News & Politics
Website: Boncopia.com

The intensifying feud between President Donald Trump and Elon Musk has not only shaken SpaceX but also cast a spotlight on its rival, Boeing, a legacy aerospace giant with a deep portfolio of government space contracts. Trump’s June 5, 2025, threat to cut Musk’s federal subsidies and contracts—potentially costing SpaceX billions—comes amid Musk’s scathing criticism of Trump’s $2.4 trillion budget bill, which he called a “disgusting abomination.” House Minority Leader Hakeem Jeffries, seizing the moment, endorsed Musk’s critique as the “stone-cold reality,” amplifying GOP divisions. As SpaceX faces uncertainty, Boeing’s own space contracts, worth billions from NASA and the Department of Defense (DoD), are a critical piece of the puzzle. This blog unpacks Boeing’s major space contracts, their challenges, and how the Trump-Musk clash could reshape the competitive landscape for America’s space ambitions.

Boeing’s Space Contracts: A Legacy Under Pressure

Boeing’s Defense, Space & Security (BDS) division, headquartered in Arlington, Virginia, is a powerhouse in aerospace, securing $33 billion annually and employing 56,000 people. Its space portfolio, rooted in decades of work on Apollo, the Space Shuttle, and the International Space Station (ISS), includes contracts critical to NASA and the DoD. Here’s a detailed look at Boeing’s key space contracts as of June 2025:

• NASA’s Commercial Crew Program (Starliner): In 2014, NASA awarded Boeing a $4.2 billion fixed-price contract to develop the CST-100 Starliner for crewed missions to the ISS, compared to SpaceX’s $2.6 billion for Crew Dragon. The contract covers development, testing, and up to six operational missions. However, Starliner has faced significant setbacks:

  • The 2019 Orbital Flight Test (OFT) was a partial failure, requiring a second test (OFT-2) in 2022.

  • The 2024 Crew Flight Test (CFT) with astronauts Butch Wilmore and Suni Williams encountered helium leaks and thruster issues, forcing an uncrewed return and leaving the astronauts on the ISS, with SpaceX tasked to retrieve them.

  • Boeing has absorbed $1.85 billion in cost overruns, including a $250 million charge in Q3 2024, due to the fixed-price contract structure.

  • Posts on X highlight the disparity: SpaceX completed 13 crew missions with 49 astronauts, while Boeing managed only one incomplete mission, despite receiving $1.6 billion more.

• Space Launch System (SLS): Boeing is the prime contractor for NASA’s SLS, the heavy-lift rocket for Artemis missions to the Moon and Mars. A $3.2 billion contract in 2022 covers core and upper stages for Artemis III and IV, with options for up to 10 core stages and eight upper stages.

  • The SLS core stage, built at NASA’s Michoud Assembly Facility, produces over 2 million pounds of thrust. Artemis I’s success in 2022 validated the design, but costs exceed $3 billion annually, and a single launch is estimated at $2 billion.

  • Uncertainty looms: in February 2025, Boeing warned 800 SLS employees of potential contract termination by March, citing possible NASA budget cuts under the Trump administration.

• International Space Station (ISS) Operations: Since 1993, Boeing has been NASA’s lead ISS contractor, managing systems and engineering support. A $916 million extension in 2020 ensures support through September 2024, valued at $225 million annually, with work across Houston, Cape Canaveral, and Huntsville.

  • Boeing’s role includes maintaining the U.S. Orbital Segment and supporting microgravity experiments, leveraging its history with Apollo and the Space Shuttle.

• United Launch Alliance (ULA): Boeing co-owns ULA with Lockheed Martin, which operates Delta and Vulcan rockets. ULA secured $2.3 billion for four of nine launches in the Space Force’s National Security Space Launch (NSSL) Phase 3 Lane 1 in 2024 and four of 54 launches in NSSL Phase 3 Lane 2 through 2032, totaling $13.7 billion.

  • SpaceX won the lion’s share ($5.9 billion for 28 launches), highlighting ULA’s declining share, partly due to Vulcan rocket delays.

• Military Satellite Contracts:

  • Wideband Global SATCOM (WGS): Boeing builds the WGS constellation, critical for military communications. A $439.6 million contract in 2024 funds WGS-12, due by 2029, enhancing anti-jam capabilities with Protected Tactical Waveform.

  • Evolved Strategic SATCOM (ESS): A $298 million contract in 2020 supports a satellite payload prototype to replace Lockheed Martin’s AEHF satellites, with completion expected by 2025.

  • Mobile User Objective System (MUOS): In 2024, Boeing won a $66 million contract for Phase 1 design of two narrowband satellites (MUOS SV6 and SV7), competing with Lockheed Martin for a 2030 launch.

  • Protected Tactical SATCOM (PTS): Boeing received $191 million in 2020 to develop jam-resistant payloads, alongside Lockheed Martin and Northrop Grumman.

Boeing’s Challenges: A Tarnished Track Record

Boeing’s space program, once a gold standard, has faced scrutiny for delays, cost overruns, and technical failures:

• Starliner Struggles: Unlike SpaceX’s Crew Dragon, operational since 2020, Starliner’s $1.85 billion in overruns and repeated test failures have eroded NASA’s confidence. Boeing’s fixed-price contract, unlike NASA’s traditional cost-plus model, has forced the company to absorb losses, prompting former CEO Dave Calhoun to swear off such deals.

• SLS Criticism: The SLS’s high cost—$2 billion per launch—has drawn fire from commercial space advocates, who argue SpaceX’s reusable Starship is cheaper and more efficient. A potential cancellation looms as NASA debates Artemis funding.

• ULA’s Decline: ULA’s 40% share of NSSL Phase 3 funds, down from 60% in Phase 2, reflects SpaceX’s dominance and delays in ULA’s Vulcan rocket certification.

• Ethical Concerns: A 2020 Justice Department probe investigated whether NASA’s former human spaceflight chief gave Boeing improper guidance during a lunar lander competition, leading to Boeing’s exclusion from a $1 billion contract won by SpaceX, Blue Origin, and Dynetics.

X posts underscore Boeing’s struggles:@elonmusk noted SpaceX finished its crew capsule four years faster despite receiving less funding, blaming Boeing’s “non-technical managers.”@AutismCapital and others highlighted SpaceX’s 13 completed missions versus Boeing’s single, incomplete Starliner flight.

Trump-Musk Feud: Implications for Boeing

Trump’s threat to cut SpaceX’s $22.6 billion in contracts, including $3.8 billion in 2024, could shift opportunities to Boeing and ULA. However, Boeing’s capacity to capitalize is limited:

• Starliner’s Limitations: With SpaceX’s Dragon as the only U.S. vehicle for crewed ISS missions, Boeing’s unready Starliner can’t immediately fill the gap if SpaceX’s contracts are cut.

• ULA’s Constraints: ULA’s Vulcan rocket delays and smaller NSSL share make it ill-equipped to absorb SpaceX’s 28 Phase 3 Lane 2 launches.

• SLS Uncertainty: Potential SLS cancellation could cost Boeing billions, offsetting any gains from SpaceX’s losses.

Musk’s threat to decommission Dragon, critical for ISS access, adds pressure. If enacted, NASA might rely on Russia’s Soyuz at $90 million per seat, a costly and geopolitically fraught option. Boeing’s Starliner, still uncertified, isn’t a viable alternative.

Jeffries’ alignment with Musk’s budget critique amplifies GOP fractures, framing Boeing as part of a broader narrative of fiscal irresponsibility. This could spur scrutiny of Boeing’s high-cost contracts, especially SLS, as Democrats push for budget discipline.

Competitive Landscape and Future Outlook

Boeing’s $8 billion-plus in active space contracts face competition from SpaceX, Blue Origin, and emerging players like Rocket Lab, which won NSSL Phase 3 Lane 1 contracts. SpaceX’s $5.9 billion NSSL award and $2.89 billion Artemis lunar lander contract dwarf Boeing’s, reflecting its cost advantage and reliability.

Boeing’s CEO Kelly Ortberg claims progress on Starliner and SLS, citing “stabilizing” fixed-price contracts, but risks remain. If Trump follows through on cutting SpaceX’s contracts, Boeing could gain, but its track record suggests it may struggle to scale up. Conversely, SLS cancellation could deal a blow, forcing Boeing to pivot to commercial or military satellite contracts.

The Bigger Picture

The Trump-Musk feud exposes vulnerabilities in America’s space ecosystem, where Boeing and SpaceX are linchpins. Boeing’s contracts, while substantial, are marred by inefficiencies and delays, contrasting with SpaceX’s lean model. As Jeffries exploits GOP divisions, the clash could reshape federal spending, favoring competitors or forcing Boeing to reform. With U.S. space goals—Artemis, missile defense, and Mars exploration—at stake, the outcome will define the industry’s future.

Thought-Provoking Questions

1. Can Boeing overcome Starliner’s setbacks to compete with SpaceX, or will its fixed-price contract losses force a retreat from crewed spaceflight?

2. If Trump cuts SpaceX’s contracts, can Boeing and ULA fill the gap, or will NASA face a space access crisis?

3. How will Jeffries’ use of Musk’s critique influence congressional oversight of Boeing’s costly SLS and satellite contracts?