Unlocking Opportunities: How the Federal Grant Program Paves the Way for Elon Musk’s Starlink Expansion

The Trump administration recently announced a significant change to a $42 billion federal grant program, designed to boost high-speed internet access across the country. The updates may help expand services like Elon Musk’s Starlink satellite internet.

Commerce Secretary Howard Lutnick explained that the program will adopt a “tech-neutral approach” for funding. Previously, during the Biden administration, the rules favored fiber-optic technology, known for its fast speeds and reliable service. Now, the goal is to remove what have been seen as unnecessary restrictions that slow down internet access.

Created in 2021, the Broadband Equity, Access, and Deployment Program aims to bring internet coverage to remote areas. The initial guidelines prioritized fiber-optic broadband, but the new approach may allow various technologies to compete for funding.

Starlink, led by Musk at SpaceX, delivers internet through low-orbit satellites, making it accessible even in hard-to-reach locations. Today, almost five million people worldwide use Starlink, which gained attention for its role in helping emergency responders during a recent hurricane in North Carolina.

To date, the Commerce Department has not allocated any funds under this program. Republicans argue that excessive regulations have hindered progress. Critics have claimed that the previous administration unfairly restricted Starlink from receiving grants, even though the service could quickly connect the most isolated areas.

In 2023, the Federal Communications Commission (FCC) denied Starlink’s request for nearly $900 million in subsidies under a different rural broadband initiative, citing concerns about its ability to meet service standards. Brendan Carr, then an FCC commissioner, criticized this move, arguing it was part of a broader trend of government agencies scrutinizing Musk’s ventures.

As Musk’s business empire spans various industries, including Tesla and X (formerly Twitter), some worry about conflicts of interest shaping decisions affecting broadband access. Recently, public interest groups raised alarms that changes to the broadband program might favor Musk’s companies at the expense of long-established technology like fiber-optic networks. Experts, such as Drew Garner from the Benton Institute for Broadband & Society, stress that fiber is typically superior due to its high speeds compared to satellite options.

Details about the Commerce Department’s revised program are still emerging, and neither the department nor Musk provided additional comments when asked.

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United States Politics and Government,Regulation and Deregulation of Industry,Federal Aid (US),Satellites,Computers and the Internet,Commerce Department,Musk, Elon,Trump, Donald J,Carr, Brendan Thomas (1979- )