Federal Grant Program Opens Door to Elon Musk’s Starlink

The Trump administration will 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. The program’s rules, which were created during the Biden administration, previously favored broadband lines made of fiber-optic cables attached to homes. 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. 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. “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.