US President Donald Trump has denied cutting “large scale” subsidies to tech billionaire Elon Musk despite an ongoing rift between the two former allies. In a Truth Social post, Trump stated that he wants Musk’s companies to thrive, saying “the better they do, the better the USA does.”
Musk has received billions in federal money, including a recent $200 million contract with the Department of Defense for enhancing artificial intelligence capacities. White House press secretary Karoline Leavitt said she doesn’t think Trump supports these contracts but would discuss it with the president.
Trump previously suggested he might consider ending Musk’s government subsidies and contracts to save billions in the budget. Musk has publicly criticized Trump’s policies, including a $1 trillion infrastructure bill, calling it “a disgusting abomination.” Despite this, Trump accepted Musk’s apology for his comments.
If Trump were to block contracts and subsidies, Musk would face significant losses, potentially forcing him to close down his operations or return to South Africa.
Source: https://www.politico.com/news/2025/07/24/trump-musk-federal-subsidies-cuts-00473570