SpaceX, the company behind Starlink satellite internet, is in a funding fight with Virginia. The company says the state should give more federal grant money to Starlink instead of building fiber internet networks.
Virginia has a plan to use federal Broadband Equity, Access, and Deployment (BEAD) program money to give more people high-speed fiber internet. SpaceX is already set to get over $3 million from this program in Virginia but now wants $60 million.
The BEAD program has $42 billion to bring internet to places that don’t have good service. The Biden administration told states to focus on fiber because it’s fast and lasts for many years. But the Trump administration changed the rules, telling states to be “tech-neutral” and to look for cheaper ways to give internet access. That means states could choose satellite internet like Starlink instead of only using fiber.
What SpaceX Says
SpaceX says Virginia’s plan wastes taxpayer money by picking fiber instead of giving all technologies a fair chance. The company filed comments with the National Telecommunications and Information Administration (NTIA), which reviews state plans.
In its filing, SpaceX said Virginia is “going back to the Biden administration’s failed approach” and ignoring the Trump administration’s changes. SpaceX also said fiber is slow to build and more expensive compared to Starlink’s fast setup.
What This Means for the BEAD Program
If NTIA rejects Virginia’s plan, it could create a dispute between the Trump administration and the state. This would be awkward because Virginia’s governor, a Republican, recently praised the state’s broadband plan.
The BEAD program is important because it will shape how Americans get high-speed internet in rural and underserved areas for years to come. Fiber can give speeds of 1 gigabit or more, but it takes time and money to install. Satellite internet like Starlink can reach remote places faster but may have higher latency and lower speeds compared to fiber.
Why This Matters for Residents
For people living in rural Virginia, the outcome could decide how soon they get faster internet. If the state keeps its fiber-first plan, some areas might wait longer for service while construction happens. If SpaceX gets more funding, Starlink could reach them quicker, but the long-term speed and reliability might be lower than fiber.
This fight is not just about Virginia — it’s about how the U.S. government spends billions of dollars to close the digital divide. The choice between fiber and satellite will affect internet speeds, costs, and service quality for millions of people.
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