Trump said last December, before returning to office, that he wanted the online payments entrepreneur and the first private astronaut to conduct a spacewalk to serve as the next head of NASA.
Asked about the report, the White House confirmed the nomination shift.
“A replacement will be announced directly by President Trump soon.”
Musk reportedly lobbied directly with the president for Isaacman, who has had significant business dealings with Musk's SpaceX, to get the top NASA job, raising questions of possible conflicts of interest.
The 42-year-old founder and CEO of Shift4 Payments has emerged as a leading figure in commercial spaceflight through his high-profile collaborations with SpaceX.
He made history last September by stepping out of a Crew Dragon to gaze at Earth from the void of space while gripping the spacecraft's exterior, during the first-ever spacewalk carried out by non-professional astronauts.
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