Starlink operator SpaceX isn’t getting the broadband money it demanded from state governments despite the Trump administration rewriting the rules of a $42 billion grant program. Instead of directing the lion’s share of money to Elon Musk’s space and satellite company, early results indicate that states still plan to deploy fiber broadband networks to most of their unserved households.
When the Trump administration announced its overhaul of the Broadband Equity, Access, and Deployment (BEAD) program in March, estimates published by The Wall Street Journal suggested that SpaceX could receive $10 billion to $20 billion under the new rules. Musk clearly expected a big windfall; as we’ve written, SpaceX alleges that Virginia and Louisiana violated the Trump administration’s rules by allocating most of the money to fiber providers instead of Starlink’s satellite service.
Assuming Virginia and Louisiana don’t back down, SpaceX has indicated it will ask the Trump administration to reject their grant proposals. SpaceX might end up filing similar objections in many other states after more of them reveal their plans. A third state, West Virginia, revealed its plan on Tuesday, and SpaceX isn’t likely to be happy with it.
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