The Commerce Department is about to give billions to Elon Musk as part of internet program: report

Changes to a program expanding internet access could “drastically increase” opportunities for Elon Musk, the Wall Street Journal reported Tuesday. The Commerce Department is looking to change a Biden era program that intends to make the internet more widely available across the country as soon as this week, meaning his satellite internet system, Starlink, will stand to profit.

Reporter Patience Haggin writes, “Commerce Secretary Howard Lutnick has told staff he plans to make the grant program ‘technology-neutral,’ the people said. That change will free up states to award more funds to satellite-internet providers like Starlink, rather than mainly to companies that lay fiber-optic cables, to connect the millions of U.S. households that lack high-speed internet service.”

Starlink is part of SpaceX, Musk’s space technology company. The $42.5 billion Broadband Equity, Access and Deployment Program placed rules around the usage of satellites — they could only be used where it wasn’t a good idea to lay fiber cables, because they thought cables were more reliable and durable. Republicans say the program moves too slowly.

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“The potential new rules could drastically increase the share of funding available to Starlink,” Haggin writes. “Under the BEAD program’s original rules, Starlink was expected to get up to $4.1 billion, said people familiar with the matter. With Lutnick’s overhaul, Starlink... could receive $10 billion to $20 billion, they said.”

According to sources, Starlink lobbied the Commerce Department about the program. But they stopped these efforts when Trump took office.

Lutnick is looking to change other rules to BEAD as well. He is reportedly considering reducing rules that stipulate internet providers to offer plans for low-income customers. Starlink costs hundreds of dollars and has a $120 monthly service fee. However, “Starlink has gained a loyal following because it works in areas where fiber service isn’t available,” Haggin writes.

Lutnick reportedly said he is planning on getting rid of BEAD rules about sustainability, “as well as provisions that encouraged states to fund companies with a racially diverse workforce or union participation, the people said,” Haggin writes.

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Arielle Roth, whom Trump nominated to lead the bureau at the Commerce Department that oversees BEAD, said the bureau “imposed extreme tech bias in favor of fiber.” It also had a “woke social agenda," she added.