Because Duffy pissed off Musk. Federal Transit is where they stick the overly ambitious to bore them to death and/or trip on their own dick.

Does Musk still have sway with Trump? I thought they had a messy breakup earlier this year.

They need his money for the midterms

They apparently got back together. Trump recently said of their relationship:

"I like Elon. I've always liked Elon." and "He's a nice guy. And he's a very capable guy. I've always liked him. He had a bad spell. He had a bad period. He had a bad moment. It was a stupid moment in his life. Very stupid. I'm sure he'd tell you that. But I like Elon and I suspect I'll always like him."

Slightly off-topic but Scott Manley recently had a couple of entertaining videos featuring Jared Isaacman’s private Air Force in Montana.