US politics live: Elon Musk to receive whopping new government contract amid crackdown on government spending

Elon Musk is in the midst of a cost-cutting crusade. One recipient of government largesse, though, is avoiding his scrutiny.

Welcome, once more, to our live coverage of US politics.

Elon Musk, who is currently leading a cost-cutting crusade across America’s federal government, is reportedly about to benefit from a whopping new injection of government cash into one of his own businesses.

The billionaire has not divested from his various companies, and is in fact still their CEO, despite the influence he now wields over government departments that issue lucrative contracts to the private sector. And, indeed, the agencies which regulate said sector.

The new contract in question here involves a State Department order for “armoured” vehicles from Tesla, and will be worth up to $US400 million. It’s expected to span up to five years.

One might think this a contradiction. On the one hand, Mr Musk is quite ruthlessly taking chunks out of the federal budget, shutting down programs and seeking to drive public servants out of the government. His justification is, of course, value for the taxpayer.

A perfectly noble and defensible aim. On the other hand, however, Mr Musk continues to benefit from billions of dollars in government contracts. Indeed there are few men who have been showered in more taxpayer-funded largesse in recent years. And there’s no indication – not yet, at least – that he intends to cut any of that spending.

USAID shelling out money for food in poor countries? Bad. The State Department chucking Tesla a few hundred million? Good. That’s where we are, at the moment.

Incidentally we have learned, in recent days, that Mr Musk’s financial disclosures will not be released to the public, and that any conflicts of interest he may have during the course of his work with DOGE will be self-policed. I repeat: Elon Musk will be the judge of whether or not Elon Musk has any relevant conflicts of interest. Hmm.

You’d be happy too. Picture: Angela Weiss/AFP

Meanwhile there were significant developments concerning the war in Ukraine today, after Donald Trump spoke to Russian President Vladimir Putin.

“I just had a lengthy and highly productive phone call with President Vladimir Putin of Russia,” Mr Trump wrote on social media.

“We want to stop the millions of deaths taking place in the war with Russia/Ukraine.

“President Putin even used my very strong campaign motto of “COMMON SENSE”. We both believe very strongly in it.

“We agreed to work together, very closely, including visiting each other’s nations. We have also agreed to have our respective teams start negotiations immediately, and we will begin by calling President Zelensky, of Ukraine, to inform him of the conversation.

“Millions of people have died in a war that would not have happened if I were president, but it did happen, so it must end.”

It is difficult to gauge the true death toll from Putin’s invasion of Ukraine, which began in February of 2022, but most estimates place it at around a million. Ukraine itself believes it’s killed or wounded 800,000 invading Russian soldiers.

At a press conference after the above statement, Mr Trump confirmed his intention to meet with Putin, and suggested their first summit might be held in Saudi Arabia.

Mr Trump speaking at the White House. Picture: Andrew Caballero-Reynolds/AFP

Coincidentally, the developments with Putin came on the same day Mr Trump’s nominee to become director of national intelligence, Tulsi Gabbard, was confirmed by the Senate.

Ms Gabbard has long been criticised for, her detractors allege, being sympathetic to foreign dictators like Putin and Syria’s now-deposed Bashar al-Assad.

Also of note: Defence Secretary Pete Hegseth, speaking in Europe today, said the US “does not believe that NATO membership for Ukraine is a realistic outcome”, effectively ruling it out. This could be interpreted as an almost pre-emptive concession to Putin.

Read on for the latest updates.

Originally published as US politics live: Elon Musk to receive whopping new government contract amid crackdown on government spending