Starlink May Gain Access to $42 Billion Federal Broadband Program
Elon Musk’s satellite internet service, Starlink, could soon be eligible for a $42 billion federal broadband grant, following a rule change by the U.S. Department of Commerce.
The program, known as Broadband Equity, Access, and Deployment (BEAD), was initially designed to prioritize fiber-optic networks, making it difficult for satellite services like Starlink to qualify. However, the Commerce Department announced on Wednesday that it would now adopt a technology-neutral approach, potentially allowing Starlink to compete for funding aimed at expanding internet access in rural and underserved areas.
Rule Change Could Benefit Starlink
Commerce Secretary Howard Lutnick stated that the revised guidelines remove “pointless requirements” from the Biden administration and focus on cost-effective solutions to bridge the digital divide. While the announcement did not specifically mention Starlink, the shift in policy suggests satellite internet providers could now be eligible for BEAD funding.
The decision comes amid criticism that, despite $20 billion already being distributed to states and territories, the program has yet to deliver internet access to any homes.
Musk’s Government Contracts and Potential Conflicts
If Starlink secures BEAD funding, it could raise questions about Musk’s expanding role in federal contracts. His businesses – including SpaceX, Tesla, and Starlink – have increasingly been involved in government deals, despite his public stance on reducing government spending.
In 2023, the Federal Communications Commission (FCC) rejected an $885 million contract for Starlink under the Rural Digital Opportunity Fund, citing its preference for fiber-optic solutions. However, with the latest rule changes, Starlink may have a better chance at securing government contracts.
Meanwhile, Musk’s influence in policymaking is under scrutiny, particularly as federal agencies explore more partnerships with his companies. The Federal Aviation Administration (FAA) recently confirmed that it is testing three Starlink terminals as part of a potential upgrade to the nation’s air traffic control communication system.
Shifting Policies on Privatization
Musk has been a vocal advocate for privatizing government-run services like Amtrak and the U.S. Postal Service, arguing that it would improve efficiency and reduce taxpayer burdens. At an investor conference on Wednesday, he reiterated his belief that “anything that can logically be privatized should be privatized.”
Despite this stance, Musk’s companies continue to secure federal contracts, leading to debates over potential conflicts of interest as he gains greater influence over U.S. policy and infrastructure projects.
While BEAD’s rule change marks a significant policy shift, it remains to be seen whether Starlink will secure funding under the program or how this will impact the broader landscape of rural broadband expansion in the U.S.
