Texas lawmakers have granted Elon Musk's SpaceX unprecedented authority to close public beaches and highways around its South Texas launch facility, even as the billionaire's public feud with President Trump over federal spending threatens his companies' government relationships. The legislation comes amid heightened scrutiny of Musk's business empire and its reliance on taxpayer support.
The move represents a notable expansion of corporate power over public resources, occurring just as Musk faces potential federal audits of his companies' subsidies following his criticism of Trump's spending bill.
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Texas legislators passed House Bill 5246 in June, allowing the newly incorporated city of Starbase to temporarily close Boca Chica Beach and State Highway 4 for SpaceX rocket launches1. The bill revised powers of the Texas Space Commission and grants municipal officials authority to coordinate closures for "public safety purposes"1.
Rep. Greg Bonnen, a Republican from Friendswood who chaired the conference committee, said the legislation would ensure Texas "remained the gateway for the future in space exploration"1. The Federal Aviation Administration recently approved SpaceX to increase launches from five to 25 times annually, guaranteeing more frequent beach closures2.
Starbase became an official city in May after an election where 212 residents voted in favor and six opposed3. Most residents work for SpaceX, according to a Texas Newsroom analysis of voter rolls3.
Environmental and indigenous groups strongly opposed the measure. "The entire system is kind of designed to basically give them a de facto private beach," said Rob Nixon, vice chair of the South Texas chapter of the Surfrider Foundation1.
Cameron County officials also expressed opposition, stating they maintained a good working relationship with SpaceX and saw no need to transfer authority1. Josette Angelique Hinojosa with the South Texas Environmental Justice Network told county commissioners: "You are allowing a billionaire to come into our home and to be able to push you all around"2.
The state support comes as Musk publicly feuds with Trump over federal spending. Musk called Trump's "big, beautiful bill" a "disgusting abomination" and threatened to support primary challenges against Republicans who voted for it1. Trump responded by suggesting the Department of Government Efficiency review subsidies to Musk's companies, noting Musk "may have received more subsidies than anyone else"2.
Tesla stock dropped approximately 4% Tuesday amid the dispute3. Separately, Democratic lawmakers in Austin have requested Tesla delay its robotaxi service launch until new autonomous vehicle regulations take effect in September4.
"We don't get to pick and choose which ones we are going to follow," Cameron County Judge Eddie Treviño said about following state law regarding Starbase's incorporation5.
