Commerce to Overhaul ‘Internet for All’ Plan, Expanding Starlink Funding Prospects

The Commerce Department is examining changes to the $42.5 billion Broadband Equity, Access and Deployment Program aimed at expanding internet access around the country with new rules that will make it easier for Starlink, Elon Musk’s satellite-internet service, to tap in to rural broadband funding, said people familiar with the plans. Commerce Secretary Howard Lutnick has told staff he plans to make the grant program “technology-neutral,” the people said. That change will free up states to award more funds to satellite-internet providers such as Starlink, rather than mainly to companies that lay fiber-optic cables, to connect the millions of U.S. households that lack high-speed internet service. Republicans have said the BEAD Program, created by the 2021 infrastructure bill, has moved too slowly and is bogged down by unnecessary rules. Those rules effectively said states could only fund alternative technologies such as satellite in areas where it wasn’t feasible or cost-effective to lay fiber cables. The potential new rules could drastically increase the share of funding available to Starlink. Under the BEAD program’s original rules, Starlink was expected to get up to $4.1 billion, said people familiar with the matter. With Lutnick’s overhaul, Starlink, a unit of Musk’s SpaceX, could receive $10 billion to $20 billion, they said. The overhaul could be announced as soon as this week, possibly without some details in place, the people said. Following any changes, states might have to rewrite their plans for how to spend their funding from the program, which could delay the implementation.