SpaceX, the satellite broadband provider backed by Elon Musk, is pushing for Virginia to redo its final proposal for a federally funded deployment project in favor of its Starlink internet service. The state’s Department of Housing and Community Development recently published its recommendations for the Broadband Equity, Access, and Deployment awards program, which proposed $613 million in federal funding.
However, SpaceX claims that the state’s plan is a “massive waste of federal taxpayer money” and treated the company unfairly. The provider argues that the commonwealth prioritized expensive fiber-optic cable over its low-cost, high-speed satellite technology.
The Broadband Equity, Access, and Deployment program aims to reach unserved homes, businesses, and community buildings across the country. SpaceX had initially applied for funding but didn’t submit any proposals after the Trump administration changed eligibility rules in favor of a “technology-neutral” approach.
Virginia recommended that Starlink serve 5,579 locations, including 3,137 in Southwest and Southside Virginia, at a cost of $1.6 million. Amazon’s Project Kuiper would receive $4.5 million to reach 6,957 locations, mostly with fiber-optic coverage.
SpaceX disputes the state’s assessment, claiming that its Starlink service is scalable and can serve areas with high project area density. The company also argues that tree cover and rugged terrain were considered by the state when deciding on award recommendations.
Despite SpaceX’s claims, some residents in Southwest Virginia expressed concerns about receiving satellite internet instead of fiber-optic cable. A resident wrote that nearby neighbors have broadband but he won’t be able to access it due to a lack of infrastructure investment in his area.
The Commerce Department’s National Telecommunications and Information Administration will review the state’s proposal and potentially reject it if SpaceX’s demands are not met. If Virginia doesn’t change its proposal, the agency may deem the plan ineligible for federal funding.
Source: https://cardinalnews.org/2025/08/15/starlink-fights-back-against-virginia-broadband-recommendation