The Trump administration has overhauled a $42 billion federal grant program aimed at expanding high-speed internet nationwide. Commerce Secretary Howard Lutnick announced that the new guidelines will move away from favoring fiber-optic cables, paving the way for other technologies like Elon Musk’s Starlink satellite service.
Under the new “tech-neutral” approach, states will have more flexibility in selecting the broadband solutions that best serve their communities. Lutnick criticized the previous rules crafted under the Biden administration—for imposing unnecessary restrictions that favored fiber-optic installations, arguing that these requirements were hindering the rapid expansion of broadband services. The Commerce Department also plans to eliminate regulatory hurdles that have slowed the construction and connection of high-speed internet to households.
The Broadband Equity, Access and Deployment Program, established by Congress in 2021, was initially intended to bring reliable internet to the nation’s most isolated areas. The old criteria, which prioritized fiber-optic infrastructure for its superior speed, are now being reconsidered. This move has drawn attention to Elon Musk’s Starlink, a service provided by SpaceX that uses low-orbit satellites to deliver internet connectivity worldwide. With nearly five million subscribers, Starlink has already proven its potential in emergency scenarios, such as its deployment in North Carolina following a hurricane-induced network shutdown.
Critics have long argued that the previous framework unfairly sidelined innovative solutions like Starlink, despite evidence that the satellite system can rapidly serve remote areas. This sentiment was echoed when the Federal Communications Commission recently turned down a nearly $900 million subsidy request from Starlink for a separate rural broadband initiative, citing the company’s inability to meet specific service benchmarks. The decision was controversial, drawing criticism from figures like former FCC commissioner Brendan Carr, who now heads the agency, and who viewed the ruling as part of a broader pattern of administrative resistance toward Musk’s ventures.
The latest policy shift has raised concerns among public interest groups. Advocates for traditional broadband infrastructure argue that fiber-optic technology still offers the best performance in terms of speed and reliability. Critics warn that easing restrictions might disproportionately benefit companies like SpaceX, potentially creating conflicts of interest given Elon Musk’s significant business ties and advisory role to President Trump.
This developments signal a significant departure from the previous administration’s approach to expanding broadband access.
