SpaceX demands changes to federal broadband contracts

Starlink, the satellite-based internet service offered by Elon Musk’s space program, is set to provide broadband to 64,000 Texas locations.

By Shelly BrisbinFebruary 4, 2026 12:51 pm,

Starlink, the satellite-based internet service offered by SpaceX, will provide broadband to 64,000 Texas locations, covered by the Broadband Equity Access and Deployment program, also known as BEAD.

But SpaceX wants changes made to the contracts it has signed with state broadband offices that would loosen coverage and pricing requirements.

The Standard’s Shelly Brisbin says Starlink won those contracts after the Trump administration changed BEAD rules to allow satellite providers to offer broadband services. Previously, only providers offering wired services that met speed and price requirements were allowed to be part of BEAD. 

BEAD was part of the Biden administration’s bipartisan infrastructure act – originally a $42 billion program to bring broadband internet to areas of the country with little or no broadband access. The Trump administration eliminated other infrastructure act programs, and cut BEAD outlays to $21 billion, along with rule changes to allow satellite providers. 

SpaceX applied for BEAD funds in 2025. The company won $733 million worth of BEAD projects nationwide, including $109 million in Texas. 

After winning the contracts, SpaceX submitted requests for contract riders that would ease BEAD requirements for Starlink. Those requests came to state broadband offices that administer BEAD funds. 

SpaceX said it could not guarantee coverage in areas where access to the sky is obstructed. The company also wants to receive federal funds upfront, before services are provided.

The letter says the company cannot guarantee internet speeds required by BEAD in locations where access to the sky is obstructed.

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