A federal rocket program that could be massively profitable for Elon Musk's SpaceX was quietly pushed forward by the Trump administration last month. In a notice of proposed action posted on March 3, the Air Force announced its plan to construct a testing and demonstration site on the remote Johnston Atoll—a decommissioned military atoll 700 nautical miles from Hawaii—for up to 40 test reentry vehicle landings to be conducted over four years. The program is focused on testing the feasibility of using reusable rockets to quickly transport cargo across the globe, paving the way for rapid troop deployments or sensitive equipment delivery. Public review of the plan will begin this month, according to the notice, signaling a fast-tracked effort.
"Current military modes of transportation require days to weeks of planning and logistics to provide materiel to distant locations at the time and place of need," the notice says. "The Proposed Action would explore the military utility of this technology to address rapid global mobility challenges by leveraging commercial technology to mature critical capabilities."
The notice doesn't specify what rockets would be used for the tests, but SpaceX's 400 feet-tall, 150-ton capacity Starship is currently the only fully reusable rocket with the scale and capacity for such cargo missions. The Pentagon's interest in Earth-to-Earth rocket cargo transport dates back to the first Trump administration, when the U.S. Transportation Command first signed cooperative research and development agreements with SpaceX and space architecture company XArc, and in January 2022, the Air Force awarded SpaceX a $102 million, five-year contract to demonstrate its ability to transport military cargo and humanitarian aid around the world.
Last February, reports were published saying that the Department of Defense had approached SpaceX about the possibility of purchasing Starship rockets for cargo operations. The cost for the government acquiring Starships could easily be in the hundreds of millions per craft, with support contracts adding additional costs. If the Defense Department orders multiple Starships and scales up to operational use, SpaceX could see billions in revenue over the next decade. Musk currently owns a 42% stake in SpaceX, according to Forbes.
Musk's more than $250 million investment in Trump's 2024 campaign, including direct donations and super PAC support, has fueled speculation about favoritism as SpaceX stands to gain from programs being pushed by the administration.
The construction on Johnson Atoll is subject to an environmental assessment, one being prepared by the Air Force and SpaceX, under the National Environmental Policy Act, which requires a public comment period in the weeks ahead.
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