Robert Reich Urges Democrats to ‘Defund Musk’ and Weigh Nationalizing SpaceX

Former Clinton Labor Secretary Robert Reich is urging Democrats to make Elon Musk a target if they win back Congress, calling for investigations of his companies and for planning toward a government takeover of SpaceX and Starlink. Musk replied on X on Oct. 25 with a single line: “Stealing companies is a serious crime. Prison for Reich.”

What happened

Reich made the argument on the Oct. 24 episode of his podcast, “The Coffee Klatch with Robert Reich.” He said Musk holds too much political and economic power and should face aggressive action from Democrats.

His central claim was financial: “When I say defund Musk, you know, 75% of his wealth is dependent on taxpayers who are buying Starlink systems for the Department of Defense,” he said. Reich did not offer evidence for that 75% figure. SpaceX has won billions of dollars in federal contracts, including deals with NASA and the Pentagon, according to Fox Business, which first reported the remarks.

Reich went further than oversight. He said Democrats should begin “laying the groundwork for nationalizing Starlink and SpaceX” in case they retake the White House, arguing the companies should be publicly owned because “we should not ever have that kind of power in one person’s hands.” He also predicted Musk would face heavier congressional scrutiny if Democrats win the House and possibly the Senate, and said Musk would use his large X following as a “buttress” against it.

Musk’s reply came on X, responding to a video of Reich’s remarks shared by conservative commentator Collin Rugg.

Why it matters

Reich is a prominent voice on the left, not a sitting lawmaker, so his proposal is not policy. But it signals how far some Democratic-aligned figures are willing to go in arguing that Musk’s federal contracts create a conflict worth investigating. This suggests the midterms could shape how much scrutiny SpaceX, Starlink and Musk’s other holdings face from Congress.

Nationalizing a private company is a drastic step with no recent precedent in this area, and Reich himself acknowledged it would depend on Democrats winning the presidency. The more immediate effect is likely political: turning federal contracts into a campaign issue and raising the prospect of oversight hearings.

Key facts at a glance

What this means for you

• If you follow SpaceX, Starlink or Musk’s companies, expect the federal contracts debate to become more political ahead of the midterms.
• Treat the 75% figure as unverified. Reich did not provide evidence, and the source report did not independently confirm it.
• Nationalization remains a proposal from a commentator, not a bill or a party platform. Nothing changes for customers or contractors based on these remarks alone.

Frequently asked questions

Did Robert Reich call for defunding Elon Musk?

Yes. On his Oct. 24 podcast he used the phrase “defund Musk” and urged Democrats to investigate Musk and prepare to nationalize SpaceX and Starlink.

How did Elon Musk respond to Reich?

On Oct. 25, Musk posted on X: “Stealing companies is a serious crime. Prison for Reich.”

Does SpaceX depend on government contracts?

SpaceX has secured billions in federal contracts, including with NASA and the Pentagon, according to the source report. Reich’s specific claim that 75% of Musk’s wealth depends on taxpayers was not backed with evidence.

What to watch next

Whether Democratic candidates or lawmakers pick up Reich’s call for hearings, and whether the midterm results give Democrats control of the House or Senate. Reich said nationalization would require a Democratic White House, so that remains a longer-term question.