Watchdog: Internal Trump Administration Memo on NOAA Cuts Sets Stage for Potential Payday for Elon Musk’s SpaceX

Washington D.C. – An April 2025 memo from the Trump Office of Management and Budget (OMB) leaked to media outlets reportedly outlined plans to “effectively break up” the National Oceanic and Atmospheric Administration (NOAA), the “nation’s preeminent climate and weather agency.” The memo also prescribed moving the Traffic Coordination System for Space away from the federal government, potentially a “boon” for centibillionaire Elon Musk and his SpaceX commercial space company. Now, a new review of an apparent copy of the memo obtained by government watchdog Accountable.US details how Elon Musk and SpaceX could further benefit from the Trump OMB’s plans for NOAA.

Specifically: 

• While the memo outlined deep cuts for most programs, it prescribed a 60% increase in funding for the Near Earth Orbit Network (NEON) to $125 million. Under NEON, NOAA and NASA will work with commercial partners to design and build low-earth environmental satellites. Lawmakers have previously warned SpaceX, the “largest satellite fleet in orbit,” could benefit from the Trump administration’s plans for NOAA.

• Amid cuts for other programs, the memo also specified level funding for the National Weather Service (NWS) at over $1.2 billion, while prescribing “efforts to streamline operations and eliminate inefficient or unnecessary functions.” Lawmakers have previously warned that SpaceX’s satellite array is “singularly equipped to assume control of the weather service.”

“The Trump administration is scheming to divert NOAA resources needed to prepare for environmental disasters to satellite networks – just like the one that happens to be operated by Elon Musk’s SpaceX,” said Accountable.US Executive Director Tony Carrk. “It raises the question of whether the public safety of Americans being traded off to benefit Trump-megadonor Elon Musk. DOGE doesn’t seem to be finding much government waste, only new ways to line the pockets of wealthy insiders at the expense of everyday Americans.” 

The findings also come amid reports that Musk’s SpaceX is the “frontrunner to build Trump’s Golden Dome missile shield,” with the company estimating “the preliminary engineering and design work for the custody layer of satellites would cost between $6 billion and $10 billion.”

###