Could Musk's SpaceX Secure An FAA Deal For Starlink Under Trump's Presidency?

Billionaire Elon Musk could benefit from his close friendship with President Donald Trump, which could add to his massive wealth.

A new report suggests that Musk's SpaceX may receive potential funding from the FAA.

What Happened: While Musk's Starlink segment of SpaceX previously clashed with government agencies like the Federal Communications Commission, the unit could land several new government deals under the Trump presidency.

Starlink could be the winner of a $2.4 billion FAA contract, taking over from Verizon Communications VZ. The FAA has directed its staff to find tens of millions of dollars for a Starlink deal according to a Rolling Stone report.

Sources said the FAA has told employees to find money for the Starlink deal verbally, a rare occurrence that could indicate that "someone does not want a paper trail."

Musk, who is a key figure in Trump's Department of Government Efficiency, has sought to fire hundreds of employees at the FAA.

The Verizon deal for air traffic control has been a hot topic in recent weeks with reports that Starlink could end up with the contract, a move that could be a conflict of interest given Musk's role within the new White House administration, according to Rolling Stone.

Congresswoman Rosa DeLaura (D-Conn.) and Congressman James Clyburn (D-S.C.) called a reported deal between the FAA and Starlink "a glaring conflict of interest," as reported by The Verge. The members of Congress said a potential deal would "put Elon Musk's personal wealth over the American people's lives."

The billionaire has claimed that Verizon's communications system with air traffic control is "breaking down rapidly." Musk later issued a correction and said the Verizon system was "not yet operational." Musk's criticism was instead directed at L3 Harris Technologies Inc (NYSE:LHX), which made the system currently being used.

Read Also: Elon Musk Approval Rating Hits 41%: Voters Not Impressed With DOGE Work And Calls To Eliminate Departments

Why It's Important: It is not currently clear if Verizon's deal with the FAA remains operational or if Starlink has landed any FAA deals.

Along with the potential FAA deal, Starlink is likely to be a big winner from the current Federal Communications Commission.

The FCC is led by Brendan Carr, a public supporter of Starlink. Carr opposed a previous FCC decision not to offer $900 million in subsidies to Starlink.

Starlink made recent headlines by announing a new monthly plan offering a lower network speed available in select areas. The residential lite plan costs $80 per month and is cheaper than the normal $120 per month plan.

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