Earlier quoted context omitted.
They aren't using any tax dollars for Starship. It's entirely funded by their profits (at least as far as I know). And this Starship MK1 is/was a prototype designed to test some aspects of their design in the real world. It was never going to be anywhere close to taking people onboard. Even this incident had all people far away before they started doing anything like pressurising. This is active development, every si…
Citations needed for the funding. Sounds like people being loose with the truth. The accounting alone would be close to impossible to keep separate.
The air force has given them some money for development on their Raptor engine, and they've talked about wanting more government funding for starship itself, but they've also talked about how starship has been privately funded so far.