Comparing subsidies received by SpaceX, Boeing, and other related aerospace companies can provide insights into how much government support these firms receive

Here’s a detailed look at subsidies and government contracts for these companies, based on available data up to recent years:

1. SpaceX

SpaceX has received both government subsidies and contracts, but the distinction between subsidies and contracts is important. SpaceX often competes for and wins contracts from NASA, the Department of Defense (DoD), and other agencies. These are generally not subsidies in the traditional sense, but payments for services (such as launching satellites or cargo to the International Space Station).

Government Support

• NASA Contracts: SpaceX has received billions of dollars in contracts from NASA. The most notable are:
  • Commercial Orbital Transportation Services (COTS): SpaceX received around $396 million in funding under the COTS program to develop its Falcon 9 rocket and Dragon spacecraft.
  • Commercial Crew Program: SpaceX received over $3.1 billion to develop and launch Crew Dragon, which transports astronauts to the ISS.
  • Cargo Resupply Missions: NASA has awarded SpaceX contracts worth over $5 billion to resupply the ISS via its Dragon spacecraft.
• Military Contracts: SpaceX has won contracts with the U.S. Air Force and the Space Force. In 2020, SpaceX was awarded a $316 million contract from the U.S. Department of Defense to launch national security satellites. In total, it has secured billions in contracts for various military and national security launches.
• Local Subsidies: SpaceX has received local government subsidies for building its facilities. For example, it received $15 million from Texas to build its launch site in Boca Chica.

Total Estimate

SpaceX’s subsidies and contracts combined, especially through NASA and military contracts, have exceeded $10 billion. However, much of this is in the form of competitive contracts for services rather than outright subsidies.

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2. Boeing

Boeing, one of the largest aerospace companies in the world, receives a large portion of its revenue from government contracts and has also benefited from subsidies at both the state and federal levels. Boeing’s subsidies are often more controversial than SpaceX’s, as they are seen as more direct financial support.

Government Support

• NASA and Military Contracts: Boeing, as a traditional defense and aerospace contractor, has long-standing relationships with NASA and the U.S. Department of Defense. It has received billions of dollars in contracts for military aircraft (e.g., F/A-18 Super Hornet, F-15), missiles, satellites, and space systems. Boeing has been a major contractor for NASA’s Space Launch System (SLS), receiving over $17 billion to develop the core stage of the rocket.
• Federal and State Subsidies:
  • Washington State Tax Breaks: Boeing negotiated $8.7 billion in tax breaks from Washington state in 2013 to keep production of its 777X aircraft in the state. This is one of the largest corporate tax deals in U.S. history.
  • Export-Import Bank: Boeing has been a significant beneficiary of the Export-Import Bank of the United States, which supports U.S. companies’ sales abroad. Boeing accounts for a large portion of the bank’s loans, which are sometimes called “corporate welfare.”
• Commercial Crew Program: Boeing, like SpaceX, also received contracts under NASA’s Commercial Crew Program. Boeing’s contract was valued at around $4.2 billion to develop the CST-100 Starliner. However, delays and issues with Starliner have drawn criticism, particularly because Boeing received more money than SpaceX for a comparable service.

Total Estimate

When factoring in direct subsidies, tax breaks, and government contracts, Boeing’s total financial benefit from public sources is well over $20 billion. Boeing’s reliance on government contracts and subsidies has been a longstanding feature of its business model.

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3. Other Related Companies

Northrop Grumman

Northrop Grumman is another major player in the aerospace and defense industries. It has been heavily involved in U.S. military projects, space exploration, and missile defense systems.

• NASA Contracts: Northrop Grumman has contracts for providing support for NASA’s Artemis program and has also been involved in cargo resupply missions to the ISS with its Cygnus spacecraft. These contracts have been worth billions.
• Military Contracts: Northrop Grumman’s military contracts are substantial, particularly in areas like missile defense (e.g., Ground-based Midcourse Defense) and strategic deterrence (e.g., Minuteman III intercontinental ballistic missiles). The company has received billions from the Department of Defense for its programs.
• Federal and State Subsidies: Northrop Grumman has received tax incentives for building manufacturing facilities in states like Florida and Virginia, but these are typically smaller in scale compared to Boeing.

Lockheed Martin

Lockheed Martin, the largest defense contractor in the world, has been involved in numerous NASA programs and defense initiatives, such as building military aircraft (F-35, F-22) and spacecraft.

• NASA Contracts: Lockheed has been the primary contractor for the Orion spacecraft, part of NASA’s Artemis program. These contracts have amounted to billions of dollars.
• Military Contracts: Lockheed Martin’s defense contracts are massive, including production of the F-35 fighter jet, which alone has cost the U.S. government hundreds of billions of dollars. Lockheed receives billions annually in military contracts, making up the bulk of its revenue.
• State and Local Subsidies: Like Boeing, Lockheed has benefited from state and local government subsidies for facility construction. For instance, Lockheed received $93 million in tax incentives from the state of Texas.

Blue Origin

Blue Origin, founded by Jeff Bezos, is another private space company that has received government contracts but fewer subsidies compared to Boeing or SpaceX.

• NASA Contracts: Blue Origin has been awarded contracts under NASA’s Artemis program for developing lunar lander systems. It has also won small contracts for research and development.
• Military Contracts: Blue Origin received a $500 million contract from the U.S. Air Force for national security satellite launches.

United Launch Alliance (ULA)

ULA, a joint venture between Boeing and Lockheed Martin, has long been the preferred provider of military satellite launches.

• Military Contracts: ULA has secured multi-billion-dollar contracts from the Department of Defense and NASA for launching national security satellites.
• Government Launch Subsidies: ULA has also been criticized for receiving cost-plus contracts, which some analysts view as indirect subsidies because they guarantee a profit margin, even if the costs overrun.

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Summary Table (Estimated Financial Support from Government)

Company	Subsidies and Contracts (Estimate)
SpaceX	$10+ billion
Boeing	$20+ billion
Northrop Grumman	$10+ billion
Lockheed Martin	$20+ billion
Blue Origin	<$1 billion
ULA	$10+ billion

Conclusion

SpaceX, Boeing, and other aerospace companies receive substantial government support, but the nature of this support varies. SpaceX’s backing comes mostly through competitive contracts for services, whereas Boeing benefits from both contracts and more traditional subsidies like tax breaks. Boeing and Lockheed Martin, as major defense contractors, have historically received the most in government contracts and subsidies, while newer entrants like Blue Origin are just beginning to secure government deals.