The US Commerce Department announced a significant change to a $42 billion federal grant program for high-speed internet, removing rules that previously favored fiber-optic broadband.
The move, which aligns with President Donald Trump’s administration’s policy shift, could benefit Elon Musk’s Starlink satellite internet service.
The Broadband Equity, Access, and Deployment Program, created in 2021, was designed to expand internet access to rural and underserved areas. However, its original rules, set by the Biden administration, prioritized fiber-optic broadband, which provides the fastest speeds but requires costly infrastructure.
On Wednesday, Commerce Secretary Howard Lutnick announced that the department would now take a “tech-neutral” approach, allowing funding to be directed to a broader range of internet technologies. This includes satellite services like Starlink, which use low-Earth orbit satellites to beam internet signals to remote locations.
“The department is ripping out the Biden administration’s pointless requirements,” Lutnick said.
He also emphasized that regulatory hurdles would be removed to speed up broadband deployment.
Starlink, a subsidiary of Musk’s SpaceX, has grown rapidly, serving nearly five million customers worldwide. The company has already provided emergency internet access in disaster-stricken areas, such as North Carolina after a hurricane last year.
Critics of the original broadband program argued that satellite internet providers were unfairly excluded from funding. In 2023, the Federal Communications Commission (FCC) rejected Starlink’s application for $900 million in subsidies under a separate rural broadband initiative, citing concerns about its ability to meet service requirements.
Former FCC Commissioner Brendan Carr, who is now the agency’s chairman, opposed that decision, claiming it unfairly targeted Musk’s businesses.
Musk, who has become a close adviser to President Trump, is also leading the Department of Government Efficiency (DOGE) initiative, aimed at streamlining federal agencies. His involvement has raised conflict of interest concerns, especially as SpaceX and Starlink compete for federal contracts.
Some public policy groups, like the Benton Institute for Broadband & Society, argue that fiber-optic broadband is still the superior technology.
“Fiber broadband is widely understood to be better than other internet options—like Starlink’s satellites—because it delivers significantly faster speeds,” said Drew Garner, a policy director at the Benton Institute.
The Commerce Department has not provided specific details on how the funding will now be allocated, and Musk has not publicly commented on the changes.
With the removal of fiber-first requirements, states will have more flexibility in choosing which providers receive broadband grants. While this change could accelerate internet access expansion, it also introduces new debates over cost, reliability, and long-term infrastructure investments.
With input from the New York Times, Independent, and Reuters.
