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FCC cancels $900 million award to Starlink

The FCC today canceled a $900 million subsidy it had awarded to SpaceX in December 2020 as part of a federal program to help establish broadband service in rural communities.

The reasoning for canceling the award given at the link is very unclear. However, since the award a lobbying effort by Starlink’s competitors — teamed up with Democrats in Congress — to cancel the award has been on going. It now seems to have succeeded.

Another clue to explaining this cancellation is timing. The award was announced at the end of the Trump administration, when his appointees controlled the FCC. The cancellation took place during the Biden administration, with the FCC now controlled by Democrats who are increasing revealing themselves to be very hostile to private commercial space in general and Musk and SpaceX in particular.

Nonetheless, it seems absurd to give SpaceX any such subsidy, regardless of the politics. As I said in February 2021:

No one, including SpaceX, should get these funds. SpaceX is proving they aren’t necessary to get the job done (bringing fast internet service to rural communities). Moreover, the federal government really doesn’t have the cash, deep in debt as it is.

Sadly, just because the FCC cancelled its award to SpaceX we should not expect as modern taxpayers that the money won’t be spent. Expect the Biden administration to instead dole it out to its preferred vendors.

Genesis cover

On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.

 
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.


The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
 

"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News

6 comments

  • Kyle

    Was that suppose to be $900 million? $900 billion seems a bit high.

  • Kyle: Oy. Typo fixed. Thanks.

  • Catch Thirty Thr33

    As if another reason is needed to radically shrink the government. Such noble sounding causes like bringing broadband Internet to poor rural areas are actually nothing more than lining the pockets of those whom the government favors. All under the guise of compassion.

  • wayne

    “Congress created the Affordable Connectivity Program, a new long-term, $14 billion program, to replace the Emergency Broadband Benefit Program. This investment in broadband affordability will help ensure we can afford the connections we need for work, school, health care and more for a long time.”
    “The maximum monthly benefit will change from $50 per month to $30 per month for households not located on qualifying Tribal lands. The monthly benefit will remain at $75 per month for households on qualifying Tribal lands.”
    “Households have new ways to qualify for the Affordable Connectivity Program such as: receiving WIC benefits or having an income at or below 200% of the Federal Poverty Guidelines.”

    https://www.fcc.gov/broadbandbenefit

  • Sayomara

    Not sure if this is related pot of money but “Vilsack announces $401 million for high-speed internet”
    https://www.tsln.com/news/vilsack-announces-401-million-for-high-speed-internet/
    This looks like its USDA money where your talking about FCC money but the amounts are close enough to make one wonder if they are related

  • Col Beausabre

    What the HEY is the USDA doing with broadband, are they wiring cows together…..With the FCC deciding it controls space and the USDA running internet access, we have a government gone mad (and as an old soldier, the Army Corps of Engineers should be out of civil engineering projects, it’s over a century and a half since West Point was the only engineering school in the country. There’s thousands of civilian engineers who can do the job. Set up a Civil Works arm under the GSA and have the Corps concentrate on what it’s core mission is – MILITARY engineering. And there’s a precedent, the Coast Guard is the merger of the Revenue Cutter, Lifesaving and Lighthouse Services)

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