The Trump administration announced on Wednesday that it will revamp a $42 billion federal grant program aimed at expanding high-speed internet access nationwide, potentially benefiting Elon Musk’s Starlink satellite internet service. Previously, the program favored fiber-optic cables, but it will now take a tech-neutral approach in distributing funds, according to Commerce Secretary Howard Lutnick.
The Biden administration’s rules will be removed, and the Commerce Department will eliminate barriers that hinder construction and connection to households, Mr. Lutnick stated. This program, created by Congress in 2021, aims to extend broadband to remote areas and is undergoing changes to facilitate its implementation.
Elon Musk, CEO of SpaceX and creator of Starlink, is closely involved in government initiatives and has been at the forefront of efforts to streamline government programs. Starlink, which provides internet service via low-altitude satellites, has faced challenges in securing funding but has been praised for its ability to serve remote areas effectively.
The Commerce Department’s internet program has yet to disburse funds, and the decision to favor fiber-optic broadband has been a point of contention. Despite some setbacks, Starlink has proven its value in providing internet access during emergencies.
Concerns have been raised about potential conflicts of interest due to Elon Musk’s involvement in various industries, including Tesla and X. As the Trump administration moves to overhaul the broadband program, some worry that it could directly benefit Mr. Musk and his ventures.
Critics argue that fiber broadband offers superior speeds compared to satellite options like Starlink, raising questions about the motivations behind the changes to the program. The Commerce Department and Mr. Musk have yet to respond to requests for more information on the planned revisions.