The Trump administration is scrapping the preference for fiber-optic networks in the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program. This policy shift is expected to divert funding from fiber infrastructure toward alternative broadband technologies, including Elon Musk’s Starlink. A Wall Street Journal report suggests Starlink could receive between $10 billion and $20 billion under the revised guidelines.
Commerce Secretary Lutnick Condemns Biden-Era Broadband Strategy
Commerce Secretary Howard Lutnick has criticized the Biden administration’s broadband policies, arguing they imposed unnecessary regulations and slowed progress.
“Because of the prior administration’s woke mandates, favoritism towards certain technologies, and burdensome regulations, the program has not connected a single person to the Internet and is in dire need of a readjustment,” Lutnick said.
The BEAD program was launched in November 2021, with the National Telecommunications and Information Administration (NTIA) overseeing its rollout. However, the initiative has stalled following the administration change, with Republican lawmakers calling for adjustments, including the removal of the fiber-first policy.
Republicans Push for Tech-Neutral Broadband Expansion
Senator Ted Cruz (R-Texas) and other Republican lawmakers argue that prioritizing fiber is restrictive. Cruz also opposes BEAD requirements for affordable broadband access for low-income households, labor-related mandates, and diversity, equity, and inclusion (DEI) workforce policies.
Lutnick confirmed that the Trump administration will implement a technology-neutral approach and review additional regulations.
“The Department is revamping the BEAD program to take a tech-neutral approach… We will work with states and territories to quickly get rid of the delays and the waste,” he said.
Concerns Over Starlink’s Potential Windfall
The policy shift has sparked criticism from Democrats, who accuse Republicans of favoring Musk’s business interests.
“Musk is a grifter, and Republicans are going to just stand by and watch,” said House Commerce Committee Ranking Member Frank Pallone, Jr. (D-N.J.).
Pallone also blamed the Trump administration for delaying broadband expansion efforts, arguing that the Biden-era NTIA had developed a structured plan to deploy high-speed internet nationwide.
The Biden administration prioritized fiber networks due to their long-term scalability and reliability. The NTIA argued that fiber provides superior performance, resists interference, and supports growing data demands for applications like telehealth, online learning, and streaming.
House Republicans Target Biden’s Broadband Policies
During a congressional hearing titled “Fixing Biden’s Broadband Blunder,” House Republicans advocated for more funding for satellite and fixed wireless broadband, particularly in remote areas where fiber is expensive to deploy.
Although Biden-era rules did not ban non-fiber technologies, they categorized fiber-optic projects as “priority broadband projects.” States could only select non-fiber providers under specific cost thresholds or with NTIA approval.
The Benton Institute for Broadband & Society warned that the Trump administration’s changes could result in slower and less reliable broadband for millions of Americans. The group emphasized that fiber remains the best technology for high-performance internet due to its superior speed and reliability.
Major Funding Increase Expected for Starlink
While individual states will determine how BEAD funds are allocated, federal policy changes will heavily influence their decisions. A recent Wall Street Journal report suggests Starlink could receive a significantly larger portion of funding under the new approach.
Initially, Starlink was expected to receive up to $4.1 billion from BEAD. However, sources now estimate that Lutnick’s revisions could increase Starlink’s share to between $10 billion and $20 billion. The new rules may also benefit cable and fixed wireless providers, whose industry groups have been lobbying for expanded grant access.
Republicans Seek Legislative Overhaul of BEAD
Beyond regulatory changes, Republicans are pushing for a broader legislative rewrite of the BEAD program. House Communications and Technology Subcommittee Chairman Richard Hudson (R-N.C.) introduced a bill aimed at eliminating what he described as burdensome Biden-era regulations. The proposed legislation seeks to remove labor, climate change, and price regulation requirements, which Republicans argue have increased deployment costs and discouraged participation by internet service providers (ISPs).
Musk’s Government Ties Raise Conflict of Interest Concerns
Elon Musk’s increasing influence within the Trump administration has raised concerns about potential conflicts of interest, particularly regarding government contracts. Reports indicate that SpaceX’s Starlink division could replace Verizon’s $2 billion contract with the Federal Aviation Administration (FAA), though SpaceX denies any active efforts to take over existing agreements.
A Bloomberg opinion piece highlighted these concerns, with columnist Thomas Black stating:
“Musk is pushing SpaceX’s satellite broadband product, Starlink, as a quick solution to the FAA’s antiquated air-traffic-control systems and is muscling in on a $2.4 billion contract already awarded to Verizon Communications Inc.”
The article suggested Musk’s dual role as a government advisor and business leader could create conflicts “too blatant to ignore.”
Future Federal Funding Opportunities for Starlink
Starlink may also benefit from other federal broadband initiatives beyond BEAD. The Federal Communications Commission (FCC) previously allocated broadband subsidies, but Starlink’s eligibility has varied under different administrations.
During Trump’s first term, the FCC, led by Ajit Pai, tentatively awarded Starlink $885.51 million from the Rural Digital Opportunity Fund (RDOF). However, the Biden-era FCC later rescinded the grant, citing concerns about Starlink’s capacity to provide consistent low-latency service at required speeds.
Brendan Carr, who became FCC chairman in 2023, criticized the Biden administration’s decision to block Starlink’s funding, accusing it of regulatory harassment. With Carr now leading the agency, future FCC grants could be more favorable to Starlink.
