Image: Starlink
SpaceX’s Starlink is set to receive more than $300 million in federal funding to expand broadband access across underserved areas in the U.S., according to a new report from PCMag.
So far, 36 states and U.S. territories have submitted proposals for the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, which aims to bridge the digital divide nationwide. Collectively, those plans show Starlink securing at least $302 million to serve more than 205,000 locations, including in Guam and American Samoa.
Amazon’s Project Kuiper is also slated to receive around $124 million to cover more than 200,000 locations. However, the bulk of BEAD funding continues to flow to fiber buildouts, with fiber projects making up about 64% of all locations. Satellite internet accounts for just 20%, while the remainder will mostly go toward fixed wireless installations.
One notable correction comes out of Montana. Previously, the state was reported to be awarding $119 million to Starlink, but officials have since clarified that the actual figure is $33.7 million for roughly 20,000 locations. That still makes Montana’s Starlink BEAD allocation the fourth-highest so far, behind Ohio’s $51.6 million, Washington’s $43 million, and Wisconsin’s $34.4 million.
Starlink’s per-location funding averages around $1,470 — far lower than the $10,000-plus sometimes needed for fiber deployments in remote regions. SpaceX has argued that it can deliver service far faster and at a fraction of the cost of fiber, while preparing upgrades to bring gigabit speeds to Starlink users in the future.
Still, the revised BEAD framework remains controversial. Critics say fiber offers faster, more reliable gigabit service, while SpaceX has been accused of lobbying to secure a bigger share of federal dollars.
SpaceX is currently protesting broadband funding plans proposed by several states, including Louisiana, Virginia, and Colorado, accusing them of sidelining satellite internet in favor of costly fiber builds. The company has even asked the National Telecommunications and Information Administration (NTIA) to step in and force revisions, calling Virginia’s $613 million BEAD plan a “massive waste of federal taxpayer money.”
The BEAD program requires both Starlink and Kuiper to provide dishes for free at subsidized locations and reserve network capacity. However, it remains unclear how much BEAD-eligible customers will be charged for monthly service.
