Even more of Pennsylvania’s broadband funding will go to satellite after last-minute cost-cutting

More Pennsylvanians will receive satellite internet service from SpaceX after last-minute changes to the state’s plan to spend more than $700 million in broadband funding. The latest adjustments continue a shift that began in 2025, when the Trump administration, seeking to lower costs, overhauled the rules for a massive broadband grant program. The new version of the state’s plan more than doubles the number of locations that the Elon Musk-owned SpaceX will cover. Amazon’s satellite internet service, which is not yet available to the public, also saw an 11 percent increase in the number of locations it will serve as part of the program. Internet giant Comcast, which plans to connect residents via fiber-optic cable, will cover about one-quarter fewer locations. The changes are the result of an unusual process where federal officials set “arbitrary price caps” and pressured companies to lower their costs to meet them, said Drew Garner, director of policy engagement at the Benton Institute for Broadband & Society. This increases the risk that some companies will ultimately walk away from or default on the grant awards, he said—a problem that has undermined previous federal broadband investments.