Starlink Secures $661 Million in Government Funding for Broadband Expansion
Starlink, the satellite internet provider owned by SpaceX, is poised to receive a substantial $661 million in government funding as part of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. This funding boost comes as all 50 U.S. states have submitted their final proposals for the program, marking a significant increase from the initial $300 million Starlink was expected to receive when only 36 states had submitted their plans earlier this year.
According to data compiled by Wes Robinson of Eastex Telephone Cooperative, the BEAD program is set to allocate nearly $1 billion to satellite broadband providers. Of this amount, SpaceX’s Starlink will receive $660.6 million to serve 478,073 underserved locations across the country. Amazon Leo, Amazon’s rebranded Starlink competitor, will also receive a significant portion of the funding, totaling $302.4 million to connect 415,479 locations. Together, these two satellite providers will cover over 893,000 locations, representing approximately 22.5% of all BEAD-funded underserved areas.
Several states, including California, Colorado, Montana, Ohio, Oregon, South Carolina, and Wyoming, have opted to utilize satellite internet to serve a significant portion of their locations, with Montana leading the way by allocating up to 65% of its funding to satellite connectivity. California alone is set to allocate $164 million, with Starlink receiving $63 million for nearly 46,000 locations, while Amazon Leo will secure close to $101 million for over 92,000 locations.
This funding injection represents a major victory for both SpaceX and Amazon. While Amazon Leo is gearing up for its commercial launch next year with fewer than 200 satellites in orbit, Starlink boasts a constellation of over 8,000 satellites. For SpaceX, the BEAD support provides an opportunity to expand its U.S. customer base, although it follows a period of tension between the company and various state broadband offices.
SpaceX had previously raised concerns about certain state proposals, such as those from Louisiana, Virginia, and Colorado, arguing that these plans favored costly fiber deployments over satellite internet. The company even went as far as criticizing Virginia’s proposal as a “massive waste of federal taxpayer money,” prompting calls for revisions to be made.
As part of the BEAD program requirements, both SpaceX and Amazon are obligated to provide free satellite dishes to eligible underserved areas and reserve network capacity. However, it remains unclear whether either provider intends to offer lower-cost plans under the program. Starlink recently introduced its cheapest plan yet, priced at $40 per month for Residential 100Mbps service, and both companies have their sights set on delivering gigabit-capable satellite service in the near future.
With 29 state proposals already approved under the BEAD program and more approvals and budget finalizations on the horizon, the focus is now on how satellite connectivity will shape America’s digital future as the country strives for broader broadband access. Over $21 billion in BEAD funds still remain unallocated, underscoring the significant role that satellite internet providers like Starlink and Amazon Leo will play in bridging the digital divide across the nation.