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Advocacy group fears US will steer broadband cash to Musk / Photo: Andrew Harnik - GETTY IMAGES NORTH AMERICA/AFP/File
NYSE - LSE
Advocacy group fears US will steer broadband cash to Musk
An internet rights group on Tuesday raised alarm over reports the United States may steer billions of dollars to Elon Musk's Starlink by making changes to a rural broadband deployment program.
Net neutrality supporter Free Press spoke out after the Wall Street Journal reported that the Department of Commerce could set Musk up for a windfall by overhauling a $42.5 billion program established under former President Joe Biden to bring broadband internet service to rural parts of the country.
Commerce Secretary Howard Lutnick has told staff he plans to significantly increase the share of money available to satellite-internet providers such as Starlink rather than firms that use fiber-optic cables to deliver high-speed internet service, the Journal reported, citing people familiar with the situation.
Starlink is a unit of Musk's SpaceX company.
Musk -- the world's wealthiest person and a top donor to Donald Trump's 2024 campaign -- has status as a "special government employee" and "senior adviser to the president."
Trump put Musk in charge of the newly created Department of Government Efficiency that has been slashing the ranks of US agencies under the auspices of budget cutting.
"The Trump administration is undermining an essential bipartisan program designed to bring reliable and affordable broadband to tens of millions of Americans -- and it's doing so just to line Elon Musk's already bulging pockets," Free Press co-chief Craig Aaron said in a statement.
The Commerce Department did not respond to a request for comment.
During the Biden administration, the Federal Communications Commission rejected Starlink's application for nearly $900 million in subsidies on the grounds it failed to show it could meet service requirements, Free Press noted.
Fiber optic cables are considered faster and more reliable than satellites for broadband internet service.
Congress created the Broadband Equity, Access and Deployment Program as part of a 2021 infrastructure bill that Biden signed into law.
Proposals from every US state have been approved, but critics argue the program is moving too slowly.
The bill called on states to prioritize reliable, fast broadband service built to last, according to Free Press.
"The Trump administration is throwing out this sensible approach to favor only providers who are stationed inside the White House," Aaron said.
"From the FAA to the Defense Department, giving billions to Musk seems to be the Trump administration's top priority, and now the Commerce Department is getting in on the action," he added.
Starlink internet service can currently be accessed by anyone in the United States, and the company doesn't need taxpayer subsidies, Free Press argued.
X.Herrmann--BlnAP
