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Fact check: Did trump cancel any of Elon musks contracts in 2025

Checked on May 14, 2025

1. Summary of the results

The question implies a simple yes/no answer, but the reality is more complex. Trump did not directly cancel Elon Musk's contracts - instead, Musk is actually working with the Trump administration as the head of the Department of Government Efficiency (DOGE) [1]. Together, they claim to have cancelled nearly 2,300 contracts overall [2], but many of these cancellations were either temporary or ineffective:

  • Many contracts were quickly reinstated by federal agencies, some within hours [3] [4]
  • Over $220 million worth of initially cancelled contracts have been restored [4]
  • 794 of the claimed cancellations will yield no savings [2]

2. Missing context/alternative viewpoints

Several crucial pieces of context are missing from the original question:

  • Musk is actually leading the contract cancellation effort through DOGE, not having his contracts cancelled [1]
  • Nearly 40% of cancelled contracts were already fully obligated, making the cancellations purely symbolic [2]
  • A specific case involving Thomson Reuters Special Services highlights the complexity: While Trump and Musk claimed the contract was fraudulent, it was actually a legitimate Defense Department cybersecurity research project that began during Trump's first term in 2018 [5]

3. Potential misinformation/bias in the original statement

The original question contains several misleading assumptions:

  • It suggests an adversarial relationship between Trump and Musk, when they are actually working together [1]
  • The term "cancellation" implies permanence, when many cancellations were quickly reversed [3]
  • While Trump and Musk frequently use the term "fraud" in their announcements, experts note that most issues they've identified would more accurately be described as "waste" or "abuse" rather than fraud [6]

Those who benefit from this narrative include:

  • The Trump administration and Musk, who can claim they're fighting government waste
  • Federal agencies, who can continue their contracts by quickly reinstating them
  • Media outlets, who can report on the drama of cancellations and reinstatements
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