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SpaceX’s Starlink is on track to receive $300 million in federal funds as US states finalize plans to expand high-speed internet in underserved areas.
So far, 36 states and US territories have submitted proposals for the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, which aims to close coverage gaps across the US. In June, the Trump administration overhauled BEAD to emphasize “technology neutrality,” to lower costs, and potentially direct more funds to satellite internet instead of fiber.
PCMag combed through the spreadsheets included with the states’ proposals, which show SpaceX receiving at least $302 million. In return, SpaceX will deploy Starlink in over 205,000 underserved locations across the 36 states and territories, including Guam and American Samoa.
Rival satellite service Project Kuiper from Amazon is set to receive at least $124 million to serve over 200,000 locations, even though it has yet to launch.
Wes Robinson, a director at Texas-based Eastex Telephone Cooperative, has been tracking the numbers and initially pointed out the large amount of funding both companies will receive. His figures are slightly higher since he also counted “community anchor institutions,” which are schools, libraries, and colleges that’ll be covered under BEAD.
The White House’s decision to overhaul the BEAD program has been controversial since Starlink offers speeds ranging from 100Mbps to 300 Mbps, while fiber can deliver gigabit internet, usually at cheaper monthly costs. Critics have slammed SpaceX for lobbying to take a larger share of the federal funds when Starlink is already available across the US without subsidies.
However, SpaceX has argued it can deploy Starlink immediately to BEAD locations at much lower costs than expensive fiber installations. In addition, SpaceX is preparing to upgrade Starlink to support gigabit speeds.
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The various BEAD funding plans show SpaceX is receiving an average of $1,470 per location, while some fiber providers are spending $10,000 or more since they have to lay down miles of optical cables to remote areas. This is also why other companies, such as AT&T, Comcast, and Frontier, are poised to receive hundreds of millions from the BEAD program.
At $51.6 million, Ohio is spending the most on Starlink, which will be deployed in 31,000 locations. Second is Washington state, which has budgeted $43 million for over 27,000 places, while Wisconsin comes in third at $34.4 million for nearly 23,000 locations.
Fourth is Montana. Originally, a document had listed the amount at $119 million to Starlink, but the state tells PCMag it had made an error, and revised it to $33.7 million to cover over 20,000 locations.
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(Credit: Wes Robinson)
Overall, Robinson found that US states have picked satellite internet for only 20% of BEAD locations. Meanwhile, fiber providers have been selected for 64%, while the remainder will mostly go toward fixed wireless systems. The Benton Institute for Broadband and Society told PCMag it arrived at similar findings.
Robinson added: “Thus far, eligible entities are utilizing 44% ($10.7B) of their available BEAD budget ($24B) and returning $13.3B to Washington.”
On Friday, the Commerce Department also alluded to satellite internet helping the BEAD program cut down on costs. “States are already projecting savings of at least $13 billion for American taxpayers – driven by a rise in participation by the private sector, increased matching commitments by subgrantees, and a surge of innovative technology solutions to deliver high-speed connectivity,” says the National Telecommunications and Information Administration.
The department has granted short-term extensions for the remaining US states to submit their proposals. Under the BEAD program, Starlink and Project Kuiper must provide the satellite dish for free for eligible locations and reserve network capacity. But what monthly rate they’ll charge for BEAD locations remains unclear. For now, the revised BEAD program has removed a state’s ability to set the pricing for internet plans meant for low-income users.
About Michael Kan
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