Elon Musk has committed approximately $366 million to influence the 2026 midterm elections, predominantly supporting Republican candidates to maintain or increase their power in Washington. This strategic spending coincides with Musk's expanding business dealings with the federal government, as his companies SpaceX and Tesla, along with his AI ventures, face regulatory and contract decisions that could significantly impact their operations. More than $276 million has been directed toward Republican groups and Musk's political action committee, America PAC, as the midterm races intensify, especially amid public scrutiny of inflation and foreign conflicts.

Texas emerges as a critical battleground where Musk’s political spending intersects closely with his business interests. Tesla’s major vehicle factory, SpaceX’s Starbase launch site, and the proposed Terafab AI chip facility all operate in the state, prompting Musk to invest nearly $190 million to support Republican Texas Attorney General Ken Paxton and other state-level candidates. This spending has drawn sharp criticism from Democratic opponents who accuse Musk of trying to purchase political influence. Musk’s ties to Texas politics also extend through personnel connections and lobbying efforts, deepening his influence in a state crucial to his companies' success.

SpaceX’s federal contracts have soared, with $6.78 billion awarded in 2026 alone, nearly double the total from 2024, largely driven by Pentagon agreements for military communications and satellite defense systems. Musk also supports key federal politicians like Sen. Susan Collins of Maine, chair of the Senate Appropriations Committee, to help secure funding for NASA and the Department of Defense, both vital clients. Despite past tensions with the Trump administration, Musk remains closely connected to the former president, attending high-profile events and co-leading a Pentagon advisory project on future warfare.

Beyond Texas, Musk’s America PAC is actively spending millions in other battleground states such as Ohio, Michigan, and Maine to back Republican candidates and influence regulatory positions on data centers and AI development that directly affect Tesla and SpaceX. His companies continue lobbying on issues from NASA budgets to federal electric vehicle policies, underscoring the unprecedented scale and speed of Musk’s political investments. This effort reflects his aim to protect and expand his companies’ federal contracts and regulatory advantages in an increasingly competitive and scrutinized industry landscape.