Friday, April 11, 2025
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Starlink and DOGE: The $42 Billion Conflict of Interest in Rural Broadband
The Trump administration, broadband internet, and closing the rural digital divide
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The Trump Administration nominee who will oversee the distribution of $42.45 billion in broadband subsidies has pledged to move away from an 'extreme tech bias in favor of fiber' toward technology neutrality—a welcome shift that could bring transformative connectivity to rural America. Low-earth orbit satellite broadband has fundamentally changed the economics of rural deployment, and a neutral approach that considers cost, quality, and speed of implementation could stretch taxpayer dollars significantly further through an efficient mix of fiber, terrestrial wireless, and satellite technologies. While the technology impressively delivers high-quality broadband just about anywhere in the world, conflicts of interest are poised to cast doubt over the fairness of a process that is set to deliver tens of billions of dollars to broadband providers. The problem is that Starlink, currently the only U.S. provider of LEO broadband service, is owned by Elon Musk, the same person who, as head of DOGE, wields significant influence over federal agencies and spending decisions. DOGE's mandate to eliminate government inefficiency gives Musk unprecedented power across multiple departments. This combination casts doubt on the government's ability to be truly “technology neutral.”
[Scott Wallsten is president and senior fellow at the Technology Policy Institute and a senior policy scholar at the Georgetown Center for Business and Public Policy.]

In the 20th century, connecting your house to the electric grid was the best way to experience the rapidly evolving world. These days, the best way to engage with modern society is undoubtedly the internet. The name of the game is broadband internet. That means a connection fast enough to stream TV at home, connect computers in a school, or manage a small business. And while internet speeds in urban areas continue to get faster, about a quarter of people living in rural or tribal communities are still stuck using slow connections. As the internet becomes a must-have, and not a nice-to-have, these underserved areas risk getting left behind. Enter Congress, which created a program through the 2021 bipartisan infrastructure law that aimed to close this digital gap. The goal was to connect all Americans with broadband internet so that we all can benefit from an increasingly digital economy. The federal government promised to give $42 billion to the states and U.S. territories to connect the most remote places in the country. Now, the Trump Administration wants to change the program in ways that could affect what kind of internet technology we use in rural communities for the next few decades. And one person who may benefit? Elon Musk.

Groups recommended for digital equity grants from the federal government have not been notified of a pause on funds. Entities did receive notice that travel related to diversity efforts would not be an allowable expense. The Free Press reported the Trump administration had frozen funding for two programs under the Digital Equity Act, totaling about $2.7 billion. The National Telecommunications and Information Administration had recommended 65 municipalities, universities, and nonprofits for $619 million in grant funding under the Biden administration, but they need to get through a budget review by the agency’s grant manager before accessing funds. It’s possible the grant manager review could leave awardees in an extended limbo without an official pause. The same agency managing the digital equity grants is also still reviewing awards under an NTIA broadband infrastructure program the Trump administration has been critical of.
Rep Dave Taylor Introduces Bill to Curb Bureaucratic Delays and Enhance Affordability of Rural Broadband

Rep Dave Taylor (R-OH-2) introduced the Bridging the Broadband Gap Act, which will prioritize the affordability and expansion of broadband to rural communities through satellite and fixed-wireless broadband. This bill will allow states to use funds from the Broadband, Equity, Access, and Deployment Program to pay for 50 percent of the initial cost of a satellite or fixed wireless receiver and $30 of each monthly bill for the first year of service. It will additionally give service priority to counties in the bottom 50 percent of a state’s per capita income. Specifically, this bill would amend the Infrastructure Investment and Jobs Act to authorize recipients of funds under the BEAD Program to provide broadband vouchers to households in specific locations. Since BEAD has already allocated federal funds to states, the Bridging the Broadband Gap Act would allow current funding to be used for vouchers.

Kristi Westbrock, CEO and general manager of Consolidated Telecommunications Company, warned that imposing a per-location price cap under the $42.45 billion Broadband Equity, Access, and Deployment program would be “terribly detrimental” to the state’s progress toward universal fiber access. “All of the locations that are left are really high-cost areas,” she said at the USTelecom 2025 American Connectivity Forum. “So, the number one leading concern definitely is the discussion around caps [being] put in place on how much could be spent per location.” “Minnesotans expect fiber,” said Westbrook, whose company is a cooperative broadband provider serving central and northern Minnesota. “We’ve had our broadband program in place for so long, and the stories of fiber are well known. Consumers understand what fiber to their home means for them.”

The National Digital Inclusion Alliance has worked with and learned from the thousands of people on the ground in communities across the country who are doing the important work of narrowing the digital divide. Along the way, we've learned about five essentials for running successful digital navigator programs:
- Trust is key.
- You will need time, probably more than you think.
- Your digital navigators will need financial and organizational support.
- Measure your digital navigator program success in unconventional ways.
- Your digital navigators need ongoing training and community support.

The National Digital Inclusion Alliance is thrilled to publish the first set of many resources and tools for our community that shine a light on the work of digital inclusion coalitions across the country. We’re sharing an interactive map and visualizations of coalitions that feature a breakdown of 85 coalitions representing statewide, regional, and local (municipal and county) levels of geography. We recommend that you use these tools to gather contact information for any listed coalition to get connected with leaders across the country and learn more about their important work.

The North Carolina Department of Information Technology announced the launch of the state’s $17 million Digital Opportunity grant program, which will expand North Carolinians’ access to digital devices, help desk and technical support, as well as digital skills and online safety programs. NCDIT’s Office of Digital Opportunity will administer the program with funds from the National Telecommunications and Information Administration to expand economic development by ensuring North Carolinians have the skills and technology needed to compete for jobs. The Digital Opportunity grant program includes two tracks, and applicants may apply for Track 1 and/or Track 2:
- Track 1- Digital Skills, Digital Navigation and Online Safety: This track will be used to expand or create digital literacy and online safety skills programs and/or expand or create digital navigator programs.
- Track 2- Computer Ownership Capacity Building and Sustainability: This track will be used to expand computer ownership through two sub-tracks to refurbish and deploy computers.
Applications for each track will be accepted through June 9 at 11:59 p.m.

The Indiana Connectivity Program has awarded almost $1.7 million in new funding to bring connectivity to 371 addresses in the thirteenth round of funding. The total investments in the projects reached almost $7.8 million for the funding round. In all, the precise investment totals for the round and its 371 locations are $1,660,949 in state funds and $7,768,342 in total investment, according to the program. Awards are made on a rolling basis. The winning providers in this round of Indiana broadband funding:
- Airwave Networks LLC: $38,400 in state funds and $41,800 total investment
- Berry Communications: $24,328 in state funds and $56,130 total investment
- Joink Inc.: $91,168 in state funds and $157,344 total investment
- Mainstream Fiber Networks: $42,064 in state funds and $42,064 total investment
- Mulberry Telecommunications: $158,400 in state funds and $297,150 total investment
- On-Ramp Indiana, Inc.: $24,000 in state funds and $79,435 total investment
- PSC Fiber: $103,589 in state funds and $111,104 total investment
- Surf Internet: $1,176,000 in state funds and $6,979,315 total investment
- Washington County Rural Telephone: $3,000 in state funds and $4,000 total investment

Kansas Governor Laura Kelly has signed House Bill 2061, which amends the definition of a critical infrastructure facility to include telecommunications and broadband infrastructure. This will extend legal protections to these facilities to help ensure their security and limit service outages for Kansans. The bill specifies that the term includes aboveground and belowground lines, cables, and wires used for telecommunications or video services as well as antennas, towers, and structures. The functioning of this equipment is critical for maintaining internet service for Kansans, and the increased protections laid out in this bill will ensure reliable services remain available.

When you think of water infrastructure, what comes to mind? Most of us think of pipes, water treatment plants and reservoirs. But there’s an essential ingredient that many people miss: reliable fiber-optic internet. Broadband internet and water systems may seem like an odd pairing, but they’re inseparable when it comes to tackling the challenges Vermont faces today. Aging infrastructure, workforce shortages, and the growing impacts of climate change demand smarter, more efficient solutions. Broadband is the backbone that makes those solutions possible. With fiber-optic data connections, we can modernize and adapt Vermont’s water systems. From smart technologies that detect leaks to cloud-based tools that manage stormwater, reliable broadband is key to clean water and climate resilience.
[Christine Hallquist is executive director of the Vermont Community Broadband Board. Tee Thomas is CEO of Quantified Ventures, a certified woman-owned enterprise and a B Corporation that is a national leader in implementing innovative funding and financing strategies for climate, health and social impact.]

Remote communities in the northwest mountains of South Carolina were desperate for high-speed internet. Then, after years of waiting for a reliable service provider, their electric cooperative forged a partnership to step in and build a fiber broadband network. “We recognized that our area was very unserved and underserved with access to high-speed internet, and we were concerned about it," said Jim Lovinggood, president and CEO of Pickens-based Blue Ridge Electric, which has a rugged 1,800-square-mile footprint. Upcountry Fiber launched in 2021, and as of today, the Blue Ridge Electric and West Carolina Telephone Cooperative partnership has connected 23,000 subscribers across 3,500 miles of fiber and is preparing a second build ahead of schedule. As more electric co-ops weigh partnerships to deliver internet service to their rural communities, NRECA released a new white paper prepared by Keller & Heckman LLP that explores the pros and cons, how to formalize a broadband partnership, potential partners and the roles they may play and more.

T-Mobile is asking the Federal Communications Commission for permission to expand its SpaceX satellite messaging service to more phones. The reason the request is necessary? Paperwork. According to T-Mobile, the issue centers on obscure FCC waivers and authorizations for SCS services as well as for standard smartphones. In its filing, the operator explained that an FCC action that granted SpaceX authorization to connect its Starlink satellites to some phones did not cover "legacy devices" or those that received FCC equipment authorizations before June 29, 2024. "Ensuring that all compatible legacy devices ... may similarly be used for SCS operations will allow the public to seamlessly receive services and emergency alerts in difficult-to-reach areas of the country and during and after emergencies—a result clearly in the public interest," T-Mobile argued.

Chinese officials acknowledged in a secret December 2024 meeting that Beijing was behind a widespread series of alarming cyberattacks on U.S. infrastructure, underscoring how hostilities between the two superpowers are continuing to escalate. The Chinese delegation linked years of intrusions into computer networks at U.S. ports, water utilities, airports and other targets, to increasing U.S. policy support for Taiwan. The first-of-its-kind signal at a Geneva summit with the outgoing Biden administration startled American officials used to hearing their Chinese counterparts blame the campaign, which security researchers have dubbed Volt Typhoon, on a criminal outfit, or accuse the U.S. of having an overactive imagination.

The United Kingdom is preparing to respond to the series of tariffs President Donald Trump has introduced since taking office. New taxes on everything from pure-bred horses to bourbon are on the table, but the Labour government seems more interested in a conciliatory approach, and it’s considering sacrificing a popular tax on American tech companies to sweeten the deal. Prime Minister Keir Starmer has confirmed that trade talks have included “questions about the appropriate way to tax digital services,” and The Guardian reports that UK negotiators have offered to water down the Digital Services Tax in exchange for lower tariffs, following earlier reports that UK negotiators were willing to scrap the tax entirely. It’s a move that could save Silicon Valley tech giants hundreds of billions, while mounting pressure on other governments worldwide to follow suit. In the UK, it would signal capitulation to American big tech—but pragmatically, some think it might not be a huge loss. The government itself admits the DST is meant to ensure that large businesses “make a fair contribution to supporting vital public services.” It’s as much about optics as it is about tax revenue, showing the British electorate that big tech is being made to pay its share.

President Trump issued a memorandum to the heads of executive agencies directing the review and repeal of unlawful regulations without a period for notice or comment. "In effectuating repeals of facially unlawful regulations, agency heads shall finalize rules without notice and comment, where doing so is consistent with the “good cause” exception in the Administrative Procedure Act. That exception allows agencies to dispense with notice-and-comment rulemaking when that process would be “impracticable, unnecessary, or contrary to the public interest.” Retaining and enforcing facially unlawful regulations is clearly contrary to the public interest. Furthermore, notice-and-comment proceedings are “unnecessary” where repeal is required as a matter of law to ensure consistency with a ruling of the United States Supreme Court. Agencies thus have ample cause and the legal authority to immediately repeal unlawful regulations."

President Trump issued an executive order directing executive agency heads, in consultation with the Attorney General and Chairman of the Federal Trade Commission, to begin the process of eliminating anti-competitive regulations. "Federal regulations should not predetermine economic winners and losers. Yet some regulations operate to exclude new market entrants. Regulations that reduce competition, entrepreneurship, and innovation—as well as the benefits they create for American consumers—should be eliminated. This order commences the process for eliminating anti-competitive regulations to revitalize the American economy."

President Trump issued a Presidential Memorandum removing former Cybersecurity and Infrastructure Security Agency head Christopher Krebs' security clearance. The Memorandum also directs the Attorney General to conduct a review of Krebs' activities as a government employee. "I hereby direct the heads of executive department and agencies to immediately take steps consistent with existing law to revoke any active security clearance held by Christopher Krebs. I further direct the Attorney General, the Director of National Intelligence, and all other relevant agencies to immediately take all action as necessary and consistent with existing law to suspend any active security clearances held by individuals at entities associated with Krebs, including SentinelOne, pending a review of whether such clearances are consistent with the national interest."

X, the social media platform owned by Elon Musk, has enjoyed a number of perks since Musk became omnipresent at President Trump’s side. Since the election, the platform has become a go-to source for administration information, as Musk provides real-time updates about his Department of Government Efficiency and targets for federal cost-cutting to his more than 219 million followers. In February, at least a dozen government agencies, including the Internal Revenue Service and Defense Department, established new DOGE-focused X accounts to seek tips about federal waste and fraud. Users seeking an audience with Musk have increasingly flocked to the site in hopes of catching his ear. The positioning of X as a powerful government mouthpiece has helped bolster the platform, even as the company continues to struggle. It has scrambled to meet revenue and advertising goals in recent months. It faces regulatory scrutiny abroad. And on March 28, Musk announced that he had sold X to his artificial intelligence start-up, xAI, combining a struggling company with a faster-growing one. Even so, X’s heightened visibility under the Trump administration stands out — and has had a halo effect. Bankers have sold off billions in the company’s outstanding debt in recent weeks, aided by investor optimism about Musk’s alignment with President Trump. Major advertisers such as Amazon and Apple have returned. While it’s unclear how long X’s new momentum will last, and how much of it is a direct result of Musk’s proximity to President Trump, the recent successes are notable after years of business woes.

President Donald Trump’s pick to lead the Federal Communications Commission, Chairman Brendan Carr, recently launched his own proceeding he calls “IN RE: DELETE, DELETE, DELETE.” Carr says he’s following Trump’s orders to deregulate the telecommunications industry to spur economic prosperity. But based on Carr’s own words and actions over the past few months, maybe instead of DELETE, DELETE, DELETE, we need to “Control-Alt-Delete” and reboot before he does any more harm. Carr claims he is alleviating unnecessary regulatory burdens on industry, but these claims ring hollow when we take even the most cursory look at his recent public pronouncements and reports of behind-the-scenes deals. He has demanded top executives explain themselves in private meetings, warned media companies against prioritizing the hiring or promotion of diverse candidates, criticized editorial choices, threatened public hearings, and, in general, tried to intimidate executives with the specter of potentially costly reviews of their dealings. He’s even gone after the radio and TV stations that bring you Morning Edition and All Things Considered, Antiques Roadshow, and Big Bird. All under pretenses that at least one U.S. Senator calls “arbitrary and capricious.” Even in this proceeding, Carr is exercising power as if he is the only decision-maker at the FCC. Disregarding an 80-year-old law that governs how federal agencies develop, issue, and “delete” regulations, he launched this affair without the support of his fellow commissioners or FCC staff.

This week, the Senate Commerce Committee––chaired by Senator Ted Cruz (R-TX)––held a confirmation hearing for Olivia Trusty, President Trump’s nominee to be a commissioner on the Federal Communications Commission. If (when really) Trusty is confirmed, she would join FCC Commissioner Nathan Simington to give Chairman Brendan Carr a working majority at the Commission. Trusty committed to the following actions if confirmed:
- Expand access to affordable, high-speed internet services for all Americans;
- Protect consumers from illegal robocalls;
- Strengthen the security of the Nation’s telecommunications networks; and
- Restore America’s leadership in next-generation communications technologies.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
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