Does SpaceX have any contracts that aren't for the U.S. government? Aren't most of their aeronautical engineers former NASA employees? I'm sorry to get stuck on the Elon Musk side comment, but NASA is still doing really important stuff such as the Mars rover, comet landing, etc.
Defense R&D spending is way higher but nondefense spending is still keeping up with inflation [1]. There are some agencies who have had reduced budgets, such as National Institutes of Health, while DoE and NSF have enjoyed increased budgets. [2]
Overall I find your post hyperbolic and not consistent with the stats and figures. I'm assuming that your university's research was defunded and that's why you have adopted this world view. It's consistent with your experience but I believe that it doesn't represent funding in general.