The Trump administration announced plans to overhaul a federal grant program worth $42 billion, aimed at expanding high-speed internet access across the nation. The program will now take a “tech-neutral approach” in distributing funds, benefitting Elon Musk’s satellite internet service, Starlink. Previously, the program favored fiber-optic broadband, but the Commerce Department is now removing these requirements to speed up construction and connection to households.
The Broadband Equity, Access, and Deployment Program was created in 2021 to bring broadband to remote areas. Some have criticized the Biden administration for blocking Starlink from grants, while others argue that the satellite service can serve remote locations immediately.
The Federal Communications Commission rejected Starlink’s application for subsidies in a separate program in 2023, citing concerns about its ability to meet service requirements. The decision was opposed by Republican F.C.C. commissioner Brendan Carr, who is now chair of the agency.
There are concerns about potential conflicts of interest with Elon Musk’s business interests, including Tesla and SpaceX, as he plays a role in important decisions in Washington. Some public interest groups are worried that the changes to the broadband program by Commerce Secretary Howard Lutnick could directly benefit Musk.
While fiber broadband is typically preferred for its faster speeds, Musk’s Starlink has gained popularity, serving nearly five million subscribers worldwide. The Commerce Department and Musk did not immediately comment on the planned changes to the program.
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