Spacex is one of many players that have entered the market because of skyrocketing costs at Boeing, LM, and NASA. Spacex did receive government funding but it was also the first one to receive significant private sector funding from Google and Fidelity ($1 billion). There was zero government funding in the development of Falcon Heavy.
"As of May 2012[update], SpaceX had operated on total funding of approximately $1 billion in its first ten years of operation. Of this, private equity provided about $200M, with Musk investing approximately $100M and other investors having put in about $100M (Founders Fund, Draper Fisher Jurvetson, ...).[80] The remainder has come from progress payments on long-term launch contracts and development contracts. As of April 2012[update], NASA had put in about $400–500M of this amount, with most of that as progress payments on launch contracts."
Seems to me that half of SpaceX funding came from NASA (Government). I don't have a problem with that. The government funds all kinds of military/tech projects, DARPA, RDT&E $ for the private sector.