The Trump administration said on Wednesday that it would overhala to the $ 42 billion federal grant program, which aims to expand high -speed internet for the nation, which includes some rules that can benefit Alone Musk’s satellite internet service, Starlink.
Commerce Secretary Howard Lutnik said in a statement, the program will be re-designed to “take a technical-plate approach” in the distribution of funds to the states. The rules of the program, which were made during the biden administration, first used to favor broadband lines made of fiber-optic cables attached to the houses.
“The department is meeting the futile requirements of the Biden administration,” said Mr. Lutnik. He said that the Department of Commerce will also remove regulators and other obstacles that slow down construction and connections to homes.
In 2021, the Congress created the broadband equity, access and the purposeless program to expand the broadband in the most remote areas of the nation. The Department of Commerce came up with standards and regulations for states and regions applying for funds-including preference for fiber-optic broadband, which provides fastest internet service speed.
Mr. Musk, who is a close advisor to President Trump and helps lead a government proficiency initiative, is the chief executive of SpaceX, which is a rocket company that makes Starlinks. Starlink uses satellites with low height for internet service to internet service for cuisine and then tools anywhere on the planet. It serves around five million customers worldwide and was used in Northern Carolina at the end of last year by emergency respondents when the communication network was closed after a storm.
The Internet program of the Department of Commerce has not yet funded, and Republican has used it as an example of a program that slowed down by red tape.
Some have accused the Biden administration of incorrectly blocking the Starlink from the grant and said that the satellite service may immediately serve some of the nation’s most remote areas.
In 2023, the Federal Communications Commission rejected the Starlink application for about $ 900 million in a separate rural broadband program, saying that the company failed to show that it could meet the service requirements for funding.
Brendon Carr, then a Republican FCC Commissioner and now the chairman of the agency, opposed the decision and said the action has “put FCC in the increasing list of administrative agencies who are taking action against Elon Musk’s businesses.”
Mr. Musk’s commercial interests-which include electric-car manufacturer Tesla and social media company X-have inspired concerns about making important decisions in Washington as well as possible struggles of interest.
On Wednesday, some public interest groups expressed concern that the plan to change the broadband program of Mr. Lutnik may directly benefit Mr. Musk.
“Fiber broadband is widely deemed better than other internet options- such as Starlink satellites- because it gives quite rapid pace,” said Drew Garner, said Drew Garner, director of the Policy Angence for Non-Labry Benton Institute for Broadband and Society.
The Department of Commerce did not immediately respond to the requests for the details of the scheme. Mr. Musk did not respond to the remarks request.
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