Musk could use the ‘Department of Government Efficiency’ for Starlink, self-enrichment

Elon Musk, named by Donald Trump to co-lead a commission aimed at reducing the size of the federal government, is poised to undermine funding for rural broadband services to benefit his satellite internet services company, Starlink. Musk has long been a critic of the Biden administration’s Broadband Equity, Access, and Deployment (Bead) Program, which provides $42.45bn through the Bipartisan Infrastructure Bill to expand high-speed internet access in rural communities. Starlink, the satellite internet services subsidiary of SpaceX, has largely been shut out of this funding after government agencies deemed it too slow to qualify. But with Trump’s election, and the deference Trump appears poised to give to Musk’s desired reforms, the world’s richest man could re-prioritize how the federal government provides high-speed internet to rural America, creating an immense conflict of interest. If Musk recommends cuts to government spending on rural fiber optic broadband – as he has repeatedly suggested – it directly increases the value of Starlink’s satellite internet services. “We have never had a situation where the leading shareholder of a communications company has both a position – both in terms of influencing the president, but also having an assignment to drive efficiency in government – with so many government contracts,” said Blair Levin, a telecommunications industry analyst with New Street Research and the Brookings Institution. “That is an extraordinary situation. That is unprecedented.” Levin suggested that Trump could order BEAD funding to be withheld indefinitely as soon as he takes office, even though Congress has authorized the funding.