SAN FRANCISCO, March 5, (V7N) — The internet rights group Free Press has expressed concerns over reports suggesting that the United States government may direct billions of dollars from a $42.5 billion broadband initiative to Elon Musk's Starlink, potentially at the expense of more traditional fiber-optic providers.
The Department of Commerce, under Secretary Howard Lutnick, is reportedly considering changes to the Broadband Equity, Access and Deployment Program, which was established under former President Joe Biden to provide broadband internet access to rural Americans. According to the Wall Street Journal, the department may significantly increase the share of funding allocated to satellite internet providers like Starlink rather than companies relying on fiber-optic technology.
Free Press, a prominent advocate for net neutrality, argues that such a shift could undermine the program’s goal of providing reliable and affordable broadband. The group also pointed out that during the Biden administration, Starlink's application for nearly $900 million in subsidies was rejected by the Federal Communications Commission (FCC), as the company failed to meet the necessary service requirements.
Craig Aaron, co-chief of Free Press, criticized the potential changes, calling them a move to “line Elon Musk’s already bulging pockets” while weakening an important bipartisan initiative. "The Trump administration is undermining an essential program designed to bring reliable and affordable broadband to tens of millions of Americans," Aaron said in a statement.
Musk, known as the world's wealthiest person, has close ties to the Trump administration. He serves as a special government employee and senior adviser to the president, with a significant influence on government initiatives. Musk was also placed in charge of a new Department of Government Efficiency, which has been responsible for cutting the ranks of various U.S. agencies as part of efforts to reduce the budget.
Critics argue that fiber-optic internet is a more reliable and faster option than satellite service, particularly for rural areas. While Starlink currently offers broadband via satellite to areas across the U.S., Free Press contends that taxpayer subsidies are unnecessary for the company, given its existing financial resources.
The Broadband Equity, Access and Deployment Program, created by Congress through the 2021 infrastructure bill, has faced criticism for moving too slowly in delivering broadband service to rural communities. Despite state proposals being approved, Free Press and other critics argue that the program has failed to prioritize long-term, reliable service in favor of quicker, more cost-effective options.
Free Press is pushing back against potential changes that would direct federal funds toward satellite providers like Starlink, warning that it could undermine the program's integrity and further enrich Musk's companies. The Commerce Department has yet to comment on the issue, but the controversy highlights ongoing tensions over government spending, corporate influence, and access to broadband.
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