I think they just gave contracts, not any grants or funding. And they got contract after successful test flight of falcon 9 afaik. I would hardly consider this heavy.
I think they just gave contracts, not any grants or funding. And they got contract after successful test flight of falcon 9 afaik. I would hardly consider this heavy.
As for the contract, it was a $1.6B contract, not small. And sure, it wasn't a grant, something was expected in return, but in practice, it was essentially the same, SpaceX wouldn't have been able to survive without it, and grant or contract, had they missed the chance, it would have been the end. Also, the US regularly gives new contracts to SpaceX, and I suspect at an inflated price compared to purely commercial launches. In theory, these are not subsidies, but in practice, I can't imagine NASA and the US government not do anything in their power to keep SpaceX healthy as they don't have anything better by far.
[1]: https://www.vox.com/2014/5/5/5674744/how-nasa-became-utterly...
Your link says that US had no homegrown option, when it used russian rockets.
The only part that matches “because cheaper”, was atlas rockets using soviet engines, but that also had additional reasoning of keeping russian rocket engineers away from iran and north Korea.
So overall, US definitely will subsidise a US company. (If not spacex, then other company which demonstrates competence) Strategically it is a must have capability. If you depend on others, you open your self up for bunch of risks.
Even if there were superior foreign options NASA/etc. would rather work with an American company as long as it’s not hopelessly behind.
They do cost more than commercial launches, but that is because they have extra requirements that commercial customers don't, and that adds a bunch to the total cost to fly those missions.
https://spacenews.com/40006spacex-says-requirements-not-mark...
Had Arianespace been required to actually do the same thing, it would likely have cost the government 4+ billion $.
So this 'not small' contract was actually an incredible hart to fulfill and incredibly risky gamble by SpaceX.