A federal judge has ruled against an environmental group's attempt to halt SpaceX rocket launches, a decision with significant implications for the company's contracts with NASA and the incoming Trump administration. The ruling comes after a Texas-based nonprofit, Save RGV, filed a lawsuit claiming SpaceX's "deluge system," which uses water to cool rocket engines during launch, violated the Clean Water Act. Save RGV sought a restraining order to block the system's use, effectively grounding launches from Starbase in Boca Chica Beach, Texas.

SpaceX maintains the system uses potable water and poses no environmental threat, citing a technical review by the Texas Commission on Environmental Quality (TCEQ) that cleared the system. The company had previously characterized the lawsuit as "unwarranted and frivolous." U.S. District Judge Rolando Olvera denied the restraining order, acknowledging the potential negative consequences of halting launches, particularly for SpaceX's multi-billion dollar contracts with NASA related to the Artemis and Human Landing System programs. The judge also referenced environmental reviews that supported the safety of the deluge system, emphasizing its role in preventing fires and minimizing debris dispersal during launches.

This legal victory for SpaceX arrives shortly before CEO Elon Musk's anticipated collaboration with the incoming Trump administration. Musk is expected to work alongside President-elect Trump and entrepreneur Vivek Ramaswamy on the newly established Department of Government Efficiency, focusing on reducing government expenditures.