The Trump administration is looking to change a Biden administration program that expands internet coverage to rural areas—and line the pockets of co-President Elon Musk in the process, The Guardian reported on Wednesday.
According to The Guardian's report, Commerce Secretary Howard Lutnick told senior officials he wants to amend BEAD, the $42.5 billion Broadband Equity Access and Deployment program Congress passed in 2021, by ending the Biden administration's plan to build out fiber optic networks across the country to expand internet access. The planned fiber optic cable networks would be replaced with satellite service, such as Musk’s Starlink.
Using satellite instead of fiber optic cable would likely be cheaper for the government. But satellite service is less reliable and more expensive for consumers than fiber optic internet, The Guardian reported.
“I don’t think there is doubt that Bead will continue,” Blair Levin, a policy advisor to the telecommunications analysis firm New Street Research, told The Guardian. “What is in doubt is whether people get a long-term solution or something that is definitely good for Elon Musk.”
What's more, building out a fiber optic network would create jobs within states that would go away if the Trump administration cancels the plan. The Guardian reported that Republican senators could raise a stink if Trump and company do nix the fiber optic network buildout.
Any change to the program could face substantial pushback from states and Congress, including Republican senators who have previously sought assurances from administration officials that the federal program, which is expected to generate billions of dollars in long-term economic growth across some of the poorest states in the US, would largely be left alone.
This is the latest instance in which Musk is financially benefitting from his shady position in the Trump administration.
For example, the Federal Aviation Administration is planning to end its $2.4 billion contract with Verizon for a communications system and instead go with Musk's Starlink.
Rolling Stone also reported that FAA officials have been ordered to find millions of dollars to pay for a deal with Starlink.
Musk was also slated to get $400 million from the State Department, which planned to purchase armored Tesla Cybertruck vehicles to ferry around American diplomats. But that plan was scrapped after backlash.
Ultimately, Musk built his business empire in large part with $38 billion in government funding, The Washington Post reported. He is now the richest man in the world.
Yes, the very same Musk who, through the so-called Department of Government Efficiency, is pushing for massive cuts to the federal budget that have led to the firings of thousands of federal workers—many of them veterans.
Musk’s rampage through the federal government even as he is sucking from the government’s teat is unpopular with voters.
A Civiqs poll conducted for Daily Kos from Feb. 28 to March 3 found that 53% disapprove of how Musk is handling his job as a senior Trump adviser. A similar 52% of voters think Musk has too much influence in the government, with 50% saying the federal workforce cuts Musk and Trump have made are a bad thing for the country.
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