- Elon Musk’s Starlink is reportedly poised to take over a $2.4 billion FAA contract. Officials at the Federal Aviation Administration have reportedly directed staff "to locate tens of millions of dollars" for a deal, Rolling Stone reported. The proposed deal has fueled controversy over government influence and conflict-of-interest concerns.
Officials at the Federal Aviation Administration (FAA) have told staff "to locate tens of millions of dollars" for a deal with Elon Musk's Starlink, according to reports.
Three sources told Rolling Stone that the instructions had been primarily delivered to staff verbally, a move that is out of step with the agency's usual operations. One source with knowledge of the FAA's dealings told the outlet it seemed like “someone does not want a paper trail.”
Verizon was originally awarded a contract by the FAA in 2023 to overhaul its communications technology. It's unclear whether the Verizon contract has now ended and if any Starlink deal is official.
A recent report from the Washington Post said that the Trump administration was considering giving Starlink the $2.4 billion contract, prompting a wave of conflict-of-interest concerns about Musk's role in the deal.
The contract, initiated in 2023, aims to assist the FAA in upgrading the communication platform used by air traffic control facilities. However, Musk has recently promoted his own technology while intensifying his criticism of the agency, describing the current state of air traffic control systems as “extremely dire.”
In a post on X last week, he said: “The FAA assessment is single-digit months to catastrophic failure, putting air traveler safety at serious risk.”
Last week, Bloomberg reported that Musk had approved a deal to supply the FAA with 4,000 Starlink terminals. On his platform, X, Musk stated that the terminals are being provided “at NO COST to the taxpayer on an emergency basis to restore air traffic control connectivity.”
Representatives for the FAA and Musk's SpaceX did not immediately respond to a request for comment from Fortune, made outside normal working hours.
Conflict-of-interest concerns
Democratic lawmakers have already raised concerns about Musk's role at SpaceX and his influence within the Trump administration.
Sen. Ed Markey of Massachusetts wrote in an open letter to the FAA administrator: “While I support efforts to modernize our air traffic control system and improve aviation safety, this decision raises conflicts-of-interest concerns, given Elon Musk’s dual position as Chief Executive Officer of SpaceX and wide-ranging role in the Trump administration."
Reps. Jim Clyburn (D-S.C.) and Rosa DeLauro (D-Conn.) have also issued a joint statement accusing Musk of holding a "glaring conflict of interest."
“President Trump and unchecked billionaire Elon Musk are stealing taxpayer dollars used to improve the safety of Americans and the U.S. military to instead boost Musk’s companies’ profits and hand tax breaks to their billionaire cronies," Clyburn and DeLauro wrote in the statement.
"It is the government’s role to safeguard the lives of all Americans. President Trump and Elon Musk are avoiding their responsibility to keep America informed and safe by stealing resources while cutting thousands of critical safety jobs at the FAA," they said.
Musk’s involvement with the FAA extends beyond Starlink.
He recently assumed a special government employee role and reportedly played a key part in the firing of hundreds of FAA employees last month, a move linked to cost-cutting measures under the Department of Government Efficiency (DOGE).
The White House has maintained in court filings that Musk is neither an employee nor the director of DOGE. However, Musk defended the layoffs in a post on X, stating: “To the best of our knowledge, no one affecting safety has been fired.”
Trump White House press secretary Karoline Leavitt echoed this sentiment, claiming that no safety-critical employees were terminated.
