New York
Cnn
–
The Department of Trade has changed its rules in a way that can open the door to Starlink, Elon Musk’s satellite internet, to become part of a federal grant of $ 42 billion Program to bring high -speed service to the rural and poor areas of the United States.
Program rules-known as widespread capital, access and placement or beads-first gave preference to fiber optic service. This essentially closed services like Starlink, a unit of the Musk’s Spacex Company, which radiates high -speed internet access from its satellites to lower land orbit on the terminals on the ground.
The Department of Trade, which oversees the program, announced on Wednesday that Bead is now open to all forms of internet connection.
“The department is removing the vain requirements of the Biden administration,” said a statement from Trade Secretary Howard Lutnick. “It is by rebuilding the Bead program to take a neutral technological approach that is strictly directed by the results, so states can provide internet access for the lowest cost.”
Lutnick did not specifically mention plans to deliver funds based on the Starlink program, or any other satellite service. But the “technology-neutral” reference shows in that direction.
He complained that Bead, created by Congress in 2021, will still not connect every home online. (The Biden administration announced in September that it had distributed $ 20 billion so far to states and territories under the program, but did not claim that any house was still connected.
Whatever the argument for the use of the Starlink satellite service instead of fiber optics, the mass will seem contrary to the efforts of the Trump-Plus administration those of the Government Efficiency Department, which Musk leads-to shorten government spending and to stop federal programs already approved by Congress.
If Starlink continues to take contracts through the vertebrae, it It can also ask new questions about conflicts of interest that Musk include Musk, its many businesses that have made it the richest person in the world and its new role, prominent in determining government policy.
Starlink has had problems to obtain contracts for various government programs aimed at bringing high -speed internet service to rural areas. In 2023 the Federal Communications Commission rejected a $ 885 million contract that Starlink had earned in a preliminary bids process under a similar but special program, the fund of rural digital opportunities, saying it did not meet the preference of optical fibers.
Musk and Trump cut expenses elsewhere
Both President Donald Trump and Musk have said that government services that lose money, such as US and Amtrak postal service, should be privatized and transformed into lucrative businesses. They argue that these movements will save taxpayers’ money and improve services.
“I think we have to privatize everything that can logically be privatized,” Musk said at a conference of investors on Wednesday.
However, even when Musk makes this argument, the same government agencies that are facing staff or budget cuts are also considering new massive new contracts for musk businesses.
For example, the Federal Aviation Administration (FAA) has confirmed that it is testing three Starlink terminals to determine if Starlink can be used to improve the communication system for the country’s air traffic control system.
Last week, Musk said in a post on his social media platform X Verizon-which has a $ 2 billion contract, 15-year-old to improve system communication infrastructure-but was put on risk passengers due to problems with the current system. He suggested that Starlink could do a better job.
Despite Musk’s initial claim for Verizon who runs the current system -What he withdrew the current FAA communication-infrastructure is still relying on a decades-old L3Harris-overtly copper wire system and is still using Verizon equipment. FAA said it was “testing numerous communication technologies” and had not decided which system to use, although he had already given Verizon $ 2 billion.
– Hadas Gold I CNN contributed to this report.