Elon Musk’s Starlink company may be on the verge of securing a $2.4 billion contract with the Federal Aviation Administration (FAA), raising concerns about potential conflicts of interest involving the billionaire’s companies and his role as President Donald Trump’s cost-cutting czar.
The FAA is considering awarding Musk’s SpaceX a contract to provide Starlink internet service for its air traffic control communications network, potentially replacing a deal with Verizon. SpaceX has already sent some terminals to the FAA, with Musk tweeting that the equipment was supplied at no cost to taxpayers.
Musk’s role as a special government employee and his companies’ ties to other federal agencies have raised eyebrows among ethics experts. “This is certainly creating massive potential for a conflict,” says Noah Bookbinder, president of the Citizens for Responsibility and Ethics in Washington. “Unless he comes out and says both internally and externally ‘I have no role in this and no favorable treatment and that every avenue is going to be taken to ensure fairness here.'”
The deal would add to Musk’s companies’ $30 billion in public funding over the past 15 years, including deals with NASA and the Department of Defense. However, it remains unclear if Musk is personally participating in making decisions on the deal.
As the FAA considers Starlink’s work, experts are questioning whether necessary precautions have been taken to ensure Musk has no personal financial interest in matters he’s working on. “When you have magnates who support a candidate and then put them in a position to make government decisions that raise these kinds of conflict questions,” says University of Minnesota law professor Richard Painter, “we have a word for that: it’s oligarchism.”
The White House has assured that any contracts connected to Musk’s companies will comply with government ethics rules. However, the administration is also emphasizing Musk’s responsibility to identify his own conflicts of interest and excuse himself when his companies’ contracts overlap with his work at DOGE.
As the situation unfolds, experts are keeping a close eye on potential implications for the FAA, SpaceX, and the broader government contracting process.
Source: https://www.forbes.com/sites/saradorn/2025/02/28/musk-reportedly-planning-new-starlink-deal-with-faa-raising-new-conflict-of-interest-concerns