Despite the war of words, Trump leaks billions to mask star links with beads change

Less than 24 hours after President Trump threatened him. Terminates government contract for Elon MuskHis Ministry of Commerce Notification has been published It could turn hundreds of billions of dollars into masks with federal funds starlink Internet services.

Starlink is projected to receive as much as $2 billion in broadband equity, access and deployment program money under the new rules. Wall Street Journal Report Released in March.

“This is a great gift for Starlink,” Drew Garner, policy director for the Benton Institute for Broadband and Society, told CNET. “To me, this looks like another example of Taco Trump. He has his secretary give billions of dollars on the day Musk is seeking his bounce each.”

The Beads Program was signed into law as part of the Infrastructure Investment and Employment Act of 2021. This is the biggest investment the government has ever made to expand internet access.

Critics want to point out that it has been more than three years since the program was created and that the home is not yet connected by beads. But it is mostly on track, with the original law laid out the timeline. Commerce Secretary Howard Lutnick has repeatedly cited the need for faster, cheaper bead deployments, but industry observers had already told me before the election. Trump’s victory will change billions of dollars With bead money towards Starlink.

“Technology-neutral” approach

Bead is written to prioritize the expansion of fiber internet in rural areas, but the new rules mandate a “technology-neutral” approach. Previous rules gave the nation a room to consider the type of connection in the way money awarded, but the new rules essentially require that money be gone to the cheapest bidder.

“The overall idea of ​​technology neutrality doesn’t make much sense in this context,” said Evan Feynman, former director of Beads. Departed in March with an email warning of imminent changes. He added that different types of internet connections have “different performance features, different cost of working, different reliability” and very different speeds.

Fiber is widely considered the gold standard for internet connectivity, and the state has overwhelmingly awarded bead money to fiber internet providers. The exception is especially remote areas where it can be very expensive to install textiles for each landlord.

“The fibers are great, but our cost estimates are shown somewhere between about $120 (thousands) and $130,000 per location, just to connect it to the fiber,” said the director of the Texas Broadband Development Office. I told me in a previous interview About rural areas in West Texas.

Starlink needs to compete with other internet providers in all these states, and there is no guarantee that there will be the cheapest bid. Feynman also predicted that unauthorized fixed wireless providers would benefit greatly from the new rules.

The new rules also eliminate the requirements for labor, environment and affordability

“Starlink will be a significant beneficiary of these changes,” Feynman said. “That’s not all they’re doing.”

The new rules include many other adjustments intended to speed up the deployment process by removing “regulatory burdens.” All labor requirements used in the Beads Project, Climate Resilience Plans, and Net Neutrality Protection have been eliminated.

However, what came out the most to me was what was called “backdoor rate regulations.” Previously, we needed a provider that was taking bead money. Offering discount plans for low-income residents. the It’s well understood The reason most people don’t have an internet connection is not because it’s not available, they can’t afford it. It’s been a year since then Affordable connection program has ended. The federal grant provided $30 a month to help low-income households pay for internet services.

The internet is already more expensive in rural areas – Starlink plans start at $80 a month, with prepaid equipment costs $349, and many households can afford to buy something that can take advantage of the available relationship once the beads are constructed.

“Today, Secretary Lutnick has taken his heart out of Beads’ affordable clause,” Garner said. “He essentially allows providers to self-certify to offer affordable things.”

Will Bead Changes Get Internet to Rural Areas faster?

The state’s broadband office has issued a horrifying alarm when discussing potential changes to the beads later in the game. In April, a group of 115 state lawmakers sent an open letter to Secretary Lutnick urging him not to ruin the program.

“The federal government is breaking it, the state is fixing it, and the federal government is preparing to break it again,” Republican leader Lewis Riggs said. I told me back then. “Instead of putting your thumbs on the scale, why not leave it to the state to decide what they want to do in terms of technology?”

The state will spend 90 days complying with the new obligation. Many states were already approaching the finish line of their spending plans, with Louisiana, Delaware and Nevada even receiving final approval. Ironically, efforts to streamline the beads may slow it down even further.

“They’re very worried because as far as we know, the 90-day watch will start today,” Garner said. “All of them were in the middle of a stride and they were just pulling the rug from under them, and it’s hard to see how all of that doesn’t collapse now.”