You're correct that "we'll pay you to launch this satellite" isn't a subsidy. But "we'll pay you to develop this satellite launcher, and this cargo capsule, and this crew capsule, with the explicit goal of kickstarting a new launch provider" is.
Things like the EV tax credit also apply, considering Musk has leveraged his Tesla holdings to help SpaceX at times.
And to be clear: this was a very good use of public funds, whatever I think of Musk these days.
Exactly, in retrospect it's easy to confuse with a regular commercial transaction that happens to be with the government. But only because SpaceX was ultimately wildly successful with the Falcon 9/Dragon/Crew Dragon.
If SpaceX failed to deliver a working product after a receiving a bunch of incremental payments for the pre-delivery milestones (deliberately structured to prop up their early R&D), it might have ended up front and center as an example of government "picking winners and losers" gone wrong like how Solyndra was featured at the 2012 RNC.
> But "we'll pay you to develop this satellite launcher, and this cargo capsule, and this crew capsule, with the explicit goal of kickstarting a new launch provider" is.
"$38 billion!", the Post shouts about in the headline, knowing full well that people will take away that every cent was a true, untrammeled, unconditional "subsidy", as opposed to government contracts that came after successfully meeting that early ambitious goal the NASA development contract laid out for SpaceX.
By that logic, every US university with federal funding is being subsidized à la Musk. Every small business that gets an SBA loan—the type of low-interest loan that the Post article highlights—is being subsidized. The NASA program that helped fund Falcon 1 were available to anyone with a promising design, and was contingent on meeting various milestones; to paraphrase the old saying about the early manned space program, no Buck Rogers, no bucks. SpaceX delivered the Buck Rogers.
Regarding Crew Dragon, SpaceX and Boeing each signed contracts as part of the Commercial Crew program for six operational manned missions. After SpaceX fulfilled its six, NASA awarded another contract for eight more (and just purchased a few more). Meanwhile, in addition to Boeing being paid substantially much for its half of the program, the company received a $300 million special, uncontracted payment in 2016 (not disclosed until 2019) to further accelerate development.
The Starliner flight that spectacularly ran into difficulties at ISS in 2024 was a pre-operational manned test mission (SpaceX's equivalent was done in May 2020). In other words, Boeing has not yet begun its six operational missions!
Getting back to the Post article:
>Government contracts to SpaceX from NASA and the Defense Department make up the majority of funds.
Again, this isn't the US government giving sacks full of cash to Musk just because it feels like it. Biden's NASA administrator Bill Nelson quoted a member of the Joint Chiefs as telling him that SpaceX had saved the US government $40 billion for just launching military payloads <https://www.fool.com/investing/2022/06/05/did-spacex-really-...>.
> By that logic, every US university with federal funding is being subsidized à la Musk.
That is correct.
> Every small business that gets an SBA loan—the type of low-interest loan that the Post article highlights—is being subsidized.
Yes.
> Meanwhile, in addition to Boeing being paid substantially much for its half of the program, the company received a $300 million special, uncontracted payment in 2016 (not disclosed until 2019) to further accelerate development.
"Boeing is subsidized" is not a controversial statement.
> On the civilian side, SpaceX saved NASA $2 billion for just one payload
Yes, this is why we do subsidies - they (potentially) pay off. We subsidize healthcare for poor people because it saves us money in the long run. We subsidize infrastructure because it helps the economy. We subsidize critical manufacturers for national security reasons.
How is it you're reading "x is subsidized" - a simple fact - to mean "subsidizing x is bad" - a matter of opinion that varies from subsidy to subsidy and company to company?
"A subsidy, subvention or government incentive is a type of government expenditure which redistributes from tax payers to individuals, households, or businesses. Subsidies take various forms, such as direct government expenditures, tax incentives, soft loans, price support, and government provision of goods and services."
https://www.washingtonpost.com/technology/interactive/2025/e...
You're correct that "we'll pay you to launch this satellite" isn't a subsidy. But "we'll pay you to develop this satellite launcher, and this cargo capsule, and this crew capsule, with the explicit goal of kickstarting a new launch provider" is.
Things like the EV tax credit also apply, considering Musk has leveraged his Tesla holdings to help SpaceX at times.
And to be clear: this was a very good use of public funds, whatever I think of Musk these days.
Exactly, in retrospect it's easy to confuse with a regular commercial transaction that happens to be with the government. But only because SpaceX was ultimately wildly successful with the Falcon 9/Dragon/Crew Dragon.
If SpaceX failed to deliver a working product after a receiving a bunch of incremental payments for the pre-delivery milestones (deliberately structured to prop up their early R&D), it might have ended up front and center as an example of government "picking winners and losers" gone wrong like how Solyndra was featured at the 2012 RNC.
> But "we'll pay you to develop this satellite launcher, and this cargo capsule, and this crew capsule, with the explicit goal of kickstarting a new launch provider" is.
"$38 billion!", the Post shouts about in the headline, knowing full well that people will take away that every cent was a true, untrammeled, unconditional "subsidy", as opposed to government contracts that came after successfully meeting that early ambitious goal the NASA development contract laid out for SpaceX.
By that logic, every US university with federal funding is being subsidized à la Musk. Every small business that gets an SBA loan—the type of low-interest loan that the Post article highlights—is being subsidized. The NASA program that helped fund Falcon 1 were available to anyone with a promising design, and was contingent on meeting various milestones; to paraphrase the old saying about the early manned space program, no Buck Rogers, no bucks. SpaceX delivered the Buck Rogers.
Regarding Crew Dragon, SpaceX and Boeing each signed contracts as part of the Commercial Crew program for six operational manned missions. After SpaceX fulfilled its six, NASA awarded another contract for eight more (and just purchased a few more). Meanwhile, in addition to Boeing being paid substantially much for its half of the program, the company received a $300 million special, uncontracted payment in 2016 (not disclosed until 2019) to further accelerate development.
The Starliner flight that spectacularly ran into difficulties at ISS in 2024 was a pre-operational manned test mission (SpaceX's equivalent was done in May 2020). In other words, Boeing has not yet begun its six operational missions!
Getting back to the Post article:
>Government contracts to SpaceX from NASA and the Defense Department make up the majority of funds.
Again, this isn't the US government giving sacks full of cash to Musk just because it feels like it. Biden's NASA administrator Bill Nelson quoted a member of the Joint Chiefs as telling him that SpaceX had saved the US government $40 billion for just launching military payloads <https://www.fool.com/investing/2022/06/05/did-spacex-really-...>.
On the civilian side, SpaceX saved NASA $2 billion for just one payload, Europa Clipper <https://arstechnica.com/space/2023/10/a-year-from-launch-the...>, so who knows how many billions more from other launches.
> By that logic, every US university with federal funding is being subsidized à la Musk.
That is correct.
> Every small business that gets an SBA loan—the type of low-interest loan that the Post article highlights—is being subsidized.
Yes.
> Meanwhile, in addition to Boeing being paid substantially much for its half of the program, the company received a $300 million special, uncontracted payment in 2016 (not disclosed until 2019) to further accelerate development.
"Boeing is subsidized" is not a controversial statement.
> On the civilian side, SpaceX saved NASA $2 billion for just one payload
Yes, this is why we do subsidies - they (potentially) pay off. We subsidize healthcare for poor people because it saves us money in the long run. We subsidize infrastructure because it helps the economy. We subsidize critical manufacturers for national security reasons.
How is it you're reading "x is subsidized" - a simple fact - to mean "subsidizing x is bad" - a matter of opinion that varies from subsidy to subsidy and company to company?
https://en.wikipedia.org/wiki/Subsidy
"A subsidy, subvention or government incentive is a type of government expenditure which redistributes from tax payers to individuals, households, or businesses. Subsidies take various forms, such as direct government expenditures, tax incentives, soft loans, price support, and government provision of goods and services."
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