How changes to this US grant program may be ‘good news’ for Elon Musk’s Starlink

Elon Musk's satellite internet service Starlink may benefit from the changes made to a $42 billion federal grant program. This program is aimed at expanding high-speed internet in the US. US President Donald Trump’s administration has reportedly announced plans to ease certain regulations within the program, which is expected to offer Musk Starlink a boost in the country. According to US Commerce Secretary Howard Lutnick, the program will be reformed to adopt a technology-neutral approach in allocating funds to states. Previously, rules established during the Biden administration only favoured broadband connections delivered via fiber-optic cables directly to homes.
“The department is ripping out the Biden administration’s pointless requirements,” Lutnick said in a statement reported by the New York Times. He even added that the Commerce Department will eliminate regulatory and other obstacles that affect construction and household connectivity.

In 2021, the US Congress established the Broadband Equity, Access and Deployment Program to extend broadband services to the nation’s most remote areas. The Commerce Department then set standards and rules for states and territories applying for the funds, including a preference for fiber-optic broadband known for delivering the fastest internet speeds.
Starlink, which uses low-altitude satellites to beam internet service to dishes anywhere globally, currently serves nearly five million subscribers worldwide. Notably, it was used by emergency responders in North Carolina last year when communication networks failed following a hurricane.
As per the report, the Commerce Department’s broadband program has not yet disbursed any funds. Some critics have also accused the Biden administration of unfairly blocking Starlink from accessing the grants, arguing that the satellite service is capable of immediately serving some of the nation’s most remote areas.
In 2023, the Federal Communications Commission (FCC) rejected Starlink’s application for nearly $900 million in subsidies under a separate rural broadband program, stating that the company did not demonstrate it could meet the required service standards.
Changes to these restrictions on Starlink can help the company access the $42 billion federal grant program. However, the report didn’t mention any details of the plan.