According to a report by the Financial Times, Howard Lutnick, the commerce secretary under President Trump, instructed leaders of the government’s rural broadband initiative to give priority to less reliable satellite connectivity over ground-based broadband, specifically recommending Elon Musk’s Starlink. This directive was mentioned by Evan Feinman, who previously headed the rural broadband program before being removed from his position last week. Feinman stated that Lutnick’s instruction was to increase the use of satellite connectivity, regardless of other considerations, and that he “mentioned Musk by name.”

Feinman expressed concerns about the recommendation, citing the limitations of satellite-based internet services like Starlink. Although Starlink uses satellites in low-earth orbit, offering faster speeds than older services like HughesNet, Feinman argued that it cannot match the speeds expected from ground-based infrastructure. Satellite-based internet requires signals to travel to space and back, resulting in significant ping and slow synchronous communications, such as video calls or multiplayer gaming. While Starlink is easy to set up initially, requiring only a satellite dish, Feinman believes that rural Americans will ultimately be left with an inferior service in the long run. He has been an outspoken critic of using Starlink as a substitute for fiber optic internet.

Feinman’s allegations may be perceived as those of a disgruntled former employee, but they are not entirely unexpected, given Musk’s significant influence in the White House and the potential benefits to his business empire. President Trump has previously used his platform to promote Tesla vehicles amid a sales decline, and other agencies have considered awarding contracts to Musk’s companies. Musk’s nearly $300 million contribution to Trump’s campaign PAC has raised eyebrows, suggesting a quid pro quo.

It is not surprising that Musk is once again at the center of rural America’s internet plans. During the Biden administration, the Federal Communications Commission denied nearly $900 million in subsidies to SpaceX through the Bead program, citing that its service did not meet expectations regarding speed. The Bead program, a $42.45 billion initiative launched under the Biden administration, aims to expand high-speed broadband in rural communities. Besides denying Musk nearly a billion dollars in subsidies, the Bead program has faced criticism from Republicans, as no services have been deployed via the three-year-old program. Three states were preparing to commence deployment just as President Trump took office for his second term.

With Feinman’s removal and Starlink and SpaceX returning to the subsidies trough, it is challenging to view Lutnick’s comments as anything more than a favor, especially given the lack of significant technological changes to how Starlink operates.