SpaceX is taking aim at Virginia’s $613 million plan to expand high-speed internet access, accusing the state of shutting Starlink out of most of its federally funded Broadband Equity Access and Deployment (BEAD) subsidies.
On Wednesday, the company blasted Virginia’s approach as a “massive waste of federal taxpayer money” after being selected for just 5,579 of the 133,000 BEAD-subsidized sites. “Simply put, Virginia has put its heavy thumb on the scale in favor of expensive, slow-to-build fiber bias over speedy, low cost, and technology neutral competition,” SpaceX wrote in a seven-page letter to the state.
The dispute centers on the BEAD program, a $42.5 billion fund for delivering high-speed broadband to underserved areas. In June, the Trump administration overhauled BEAD to promote “technology neutrality,” making it easier for satellite and fixed wireless to compete with fiber for funding. Despite that shift, Virginia’s proposal still relies heavily on fiber, awarding Starlink just $3.2 million, or roughly $584 per site — compared to $6,000–$8,000 per site for fiber installations.
SpaceX said it offered to “to serve virtually every BEAD-eligible household in Virginia with high-speed broadband for $60 million dollars, available to Virginians immediately,” versus the state’s $613 million proposal that could take “up to four years” to deploy. The company also argued its service meets the program’s speed and latency requirements.
Virginia cited factors such as “tree cover” and “scalability” when awarding contracts, which may have tipped the scales toward fiber. While Starlink dishes do need a clear view of the sky to establish a connection, they can keep delivering internet even when partially obstructed by trees or buildings.
Project Kuiper, Amazon’s rival satellite internet service, was awarded nearly 7,000 BEAD locations in Virginia — more than Starlink. Kuiper is still starting out, with a little over 100 satellites in low Earth orbit, compared to Starlink’s 7,800+.
SpaceX is urging the Commerce Department to reject Virginia’s plan unless it’s revised, adding that its approach would “accelerate the program” rather than delay it. The protest comes as Starlink recently slashed monthly pricing for new U.S. customers and introduced a Standby Mode for paused plans. Starlink is reportedly also planning to let multiple subscribers share a single dish to cut hardware costs.
