Commerce Secretary Lutnick blasts SpaceX’s proposed BEAD rider

States can proceed with their Broadband Equity, Access and Deployment plans without any say from SpaceX, Commerce Secretary Howard Lutnick told senators. Regarding the proposed subgrantee agreement SpaceX sent to states, Sen Lutnick confirmed at a hearing “that rider is outside of our guidelines, it is outside the statute, and it is rejected by us.” The document asked states to modify BEAD requirements such as those related to capacity reserves and network performance testing—provisions that went against NTIA’s June 6 policy notice. NTIA later appeared to take aim at SpaceX, updating its FAQ page to note contracts between states and subgrantees “may not redefine program terms.” Lutnick also said if SpaceX doesn’t want to play by the rules, states can select another provider to take its place. However, he didn't explain how states would pay for that, given the fact that satellite connectivity is relatively cheap compared to other broadband technologies.