SpaceX is challenging Virginia’s broadband expansion plans, claiming the state violated the Federal Broadband Equity Access Expansion Program’s (BEAD) technology neutrality requirements in its application for funding.
The dispute stems from recent changes to the BEAD program, a $43 billion Biden administration initiative aimed at providing universal high-speed internet access. In June, the Trump administration modified the program to be technology-neutral, opening opportunities for low-earth orbit satellite services like Starlink and Amazon’s Project Kuiper alongside traditional fiber optic providers.
In an August letter, SpaceX accused Virginia of breaching provisions of the federal BEAD program by allegedly favoring fiber optic cable companies over low-earth orbit satellite providers.
“We have always had a technology neutral process for broadband grant applications,” said Maggie Beal, director of Virginia Department of Housing and Community Development. “Through the Trump administration’s new rules, we were able to save $200 million.”
SpaceX contends its Starlink service could provide even greater cost savings, claiming installation would be nearly instantaneous and costs would amount to roughly one-tenth of fiber optic cable bids. The company estimates it could connect all Virginians for $60 million instantly, compared to the $613 million projected for fiber optic installation which would take years.
However, Virginia officials cite concerns about satellite service reliability in heavily wooded areas. “If your home has at least 50% tree cover, it’s unlikely that a satellite’s going to be very effective. You won’t have a full view of the sky to get that full satellite signal,” Beal explained.
According to documents obtained by 10 News, SpaceX claims 95 percent of BEAD-eligible homes in Virginia are within one mile of a Starlink user, though the company acknowledges that a clear view of the sky is necessary for optimal performance.
Virginia has not completely excluded satellite providers from funding. “They were the lowest cost provider it turns out, so 10% of these grants have been awarded to satellite providers,” Beal noted.
SpaceX has now escalated its complaints to the National Telecommunications and Information Administration, requesting intervention not only in Virginia but also in Colorado and Louisiana, where similar disputes have emerged. Virginia officials say they don’t anticipate any delays stemming from the complaint.