This isn't government funded.
And that's is exactly WHY Startship represents economy, not waste.
When the government attacked the problem of getting crews and cargo into orbit, it developed Space Shuttle, which required a standing army of 35,000 people just to keep it running. It never achieved its reusability and reliability goals. SpaceX came into the picture with Falcon-9, whose reusable first stage  cut the cost of getting to orbit by 90%, and achieved 100% reliability. Starship is on the way to reusability of both stages  and fast turnaround at much greater payloads. And no, these efforts are not being "subsidized by NASA." SpaceX gets the job done so much cheaper that NASA contracts the company for most of its flights, as does an increasing base of purely commercial business operators.