Another Elon Musk Company Could Land Billions in Federal Funding As Republicans Look to Tweak Biden-Era Program

The US Commerce Department may be preparing to overhaul a $42.5 billion Biden-era broadband expansion program, potentially paving the way for Elon Musk's Starlink to receive up to $20 billion in federal funding.

The Broadband Equity, Access and Deployment (BEAD) program was established under the 2021 infrastructure bill to expand high-speed internet access, prioritizing fiber-optic networks over satellite-based services like Starlink, the Wall Street Journal reported.

Under the Biden administration, the program was designed to favor long-term infrastructure investment, climate-conscious policies and diversity requirements for providers. However, Republicans have argued that the rules have slowed implementation and imposed unnecessary restrictions on alternative technologies.

Commerce Secretary Howard Lutnick is leading an effort to make the BEAD program "technology-neutral," removing provisions that heavily favored fiber-optic projects. This shift could significantly boost Starlink's funding, increasing its potential share from $4.1 billion to between $10 billion and $20 billion, sources told the Journal.

The planned changes, expected to be announced within days, could also eliminate requirements related to climate impact, sustainability and workforce diversity. Additionally, the Commerce Department is reportedly considering loosening affordability requirements for lower-income consumers.

While these revisions could accelerate funding distribution, they may also force states to revise their implementation plans, potentially delaying the rollout of new internet services.

If the rule changes take effect, broadband providers relying on fiber-optic technology could receive less funding than initially expected, while Starlink and other satellite-based providers stand to gain billions.