Federal Grant Program Opens Door to Elon Musk's Starlink
The Trump administration said on Wednesday that it would overhaul a $42 billion federal grant program aimed at expanding high-speed internet to the nation, including easing some rules that could benefit Elon Musk's satellite internet service, Starlink.
The program will be revamped to 'take a tech-neutral approach' in its distribution of funds to states, Commerce Secretary Howard Lutnick said in a statement. The program's rules, which were created during the Biden administration, previously favored broadband lines made of fiber-optic cables attached to homes.
'The department is ripping out the Biden administration's pointless requirements,' Mr. Lutnick said. The Commerce Department will also remove regulatory and other barriers that slow down construction and connection to households, he added.
Congress created the Broadband Equity, Access and Deployment Program in 2021 to extend broadband to the most remote areas of the nation. The Commerce Department came up with standards and rules for states and territories applying for the funds — including the preference for fiber-optic broadband, which provides the fastest internet service speeds.
Mr. Musk, who is a close adviser to President Trump and helping to lead a government efficiency initiative, is chief executive of SpaceX, the rocket company that makes Starlink. Starlink uses low-altitude satellites to beam internet service to dishes anywhere on the planet and then to devices. It serves nearly five million subscribers worldwide and was used by emergency responders late last year in North Carolina when communications networks shut down after a hurricane.
The Commerce Department's internet program has not yet disbursed any funds, and Republicans have used it as an example of a program that was slowed down by red tape.
Some have accused the Biden administration of unfairly blocking Starlink from the grants and say the satellite service can immediately serve some of the most remote areas of the nation.
In 2023, the Federal Communications Commission rejected Starlink's application for almost $900 million in subsidies in a separate rural broadband program, saying the company failed to show it could meet service requirements for the funding.
Brendan Carr, then a Republican F.C.C. commissioner and now chairman of the agency, opposed the decision and said the action had put the F.C.C. on a 'growing list of administrative agencies that are taking action against Elon Musk's businesses.'
Mr. Musk's business interests — which also include the electric-car maker Tesla and the social media company X — have prompted concerns about potential conflicts of interest as he makes important decisions in Washington.
On Wednesday, some public interest groups expressed concern that Mr. Lutnick's plans to change the broadband program could directly benefit Mr. Musk.
'Fiber broadband is widely understood to be better than other internet options — like Starlink's satellites —- because it delivers significantly faster speeds,' said Drew Garner, a director of policy engagement for the nonprofit Benton Institute for Broadband & Society.
The Commerce Department did not immediately respond to requests for details on the plan. Mr. Musk did not respond to a request for comment.
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