The US government "funds" SpaceX in the same way you fund Apple when you buy an iPhone or Shell when you buy gas.
They are a customer, they pay for a product/service.
They are not giving money for free just to keep them afloat.
It's a bit different. Without the US gov as a early customer taking lots of risk, they company wouldn't exist. Apple or Shell wouldn't change even if 100,000 customers decided not to buy their products/service anymore.
> The first two Falcon 1 launches were purchased by the United States Department of Defense under a program that evaluates new US launch vehicles suitable for use by DARPA. The first three launches of the rocket, between 2006 and 2008, all resulted in failures, which almost ended the company. Financing for Tesla Motors had failed, as well, and consequently Tesla, SolarCity, and Musk personally were all nearly bankrupt at the same time.
https://en.wikipedia.org/wiki/SpaceX#2005%E2%80%932009:_Falc...
OK, it's like early Apple customers buying the Apple I.
Without those customers taking the risk Apple wouldn't exist today.
Still just a customer buying something, not "funding" in the way you make it sound.