Starlink operator SpaceX is fighting Virginia's plan to deploy fiber Internet service to residents, claiming that federal grant money should be given to Starlink instead. SpaceX is already in line to win over $3 million in grant money in the state but is seeking $60 million.
Starlink is poised to benefit from the Trump administration rewriting rules for the $42 billion Broadband Equity, Access, and Deployment (BEAD) grant program. While the Biden administration decided that states should prioritize fiber in order to build more future-proof networks, the Trump administration ordered states to revise their plans with a "tech-neutral approach" and lower the average cost of serving each location.
With the Trump administration backing its attempt to obtain more federal funding for Starlink, SpaceX is likely to object to state plans that still include significant fiber builds. That's what happened yesterday when SpaceX filed comments on Virginia's final proposal, which will be reviewed by the National Telecommunications and Information Administration (NTIA).
The Virginia plan "represents a massive waste of federal taxpayer money, reverting to the Biden Administration's failed approach to BEAD and completely disregarding the Trump Administration's effort to restructure the program to accelerate broadband deployment and reduce spending," SpaceX alleged. "Simply put, Virginia has put its heavy thumb on the scale in favor of expensive, slow-to-build fiber bias over speedy, low-cost, and technology neutral competition."
SpaceX urged the NTIA to deny Virginia's proposal. Such an outcome could result in a dispute between the Trump administration and Virginia, which is led by a Republican governor who touted the state's broadband plan in an announcement last week.
Starlink asked for $60 million
Starlink is generally seen as more beneficial in harder-to-serve areas because of its capacity limits, but Starlink and the Trump administration want satellite technology to be treated the same as fiber when it comes to giving out grants.