Trump Administration Plans To Dish Out More Money To Elon Musk's Starlink For Rural Broadband

SpaceX CEO and White House advisor Elon Musk could cash in as the Commerce Department plans to expand Starlink’s access to federal funding for rural broadband.

What Happened: Secretary Howard Lutnick told staffers that the department could change the rules governing the Biden Administration‘s $42.5 billion program to expand rural broadband service to allow Starlink to receive more funding, the Wall Street Journal reported, citing people familiar with the plans.

Lutnick reportedly said new rules would make funding dispersal “technology-neutral,” allowing states to award more grant money to Starlink. According to people familiar with the rule change, Musk’s Starlink could receive $6 billion to $14 billion more in grants as a result.

The Biden Administration preferred fiber connection to satellites due to their perceived reliability in comparison.

Why it Matters: Musk’s presence in the Trump Administration and his companies’ reliance on federal grants could represent a conflict of interest. The South African-born entrepreneur is the world’s richest person, according to Forbes. Political opponents likened Musk to the “unofficial co-president.”

The billionaire also pushed to install Starlink terminals within the Federal Aviation Administration in February.

Several Republican lawmakers expressed dissatisfaction with the Biden-era broadband program as it fell behind schedule and took longer in the planning phase than anticipated.

“Talk about a policy failure, talk about not delivering results to the American people,” Georgia Rep. Marjorie Taylor-Greene said in 2024. “Spending $42 billion and yet not having one household connected to the internet."

Musk himself criticized the program in 2024, calling it an “outrageous waste of money” and said that Starlink could utilize funds better than other government contractors.

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