Musk's Starlink Says It's Not Taking Over $2.4 Billion FAA Contract—But Testing Is Underway

SpaceX has denied that its Starlink satellite unit aims to take over Verizon Communication's VZ $2.4 billion telecommunications contract with the Federal Aviation Administration, amid speculation about Elon Musk’s influence in the Trump administration.

“Starlink is a possible partial fix to an aging system. There is no effort or intent for Starlink to ‘take over’ any existing contract,” SpaceX posted on X last week. The company said it is “working with L3Harris and the FAA” on potential “infrastructure upgrade for aviation safety.”

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The clarification came before Transportation Secretary Sean Duffy‘s criticism of Verizon’s implementation pace. “Verizon is not moving fast enough,” Duffy said at a Tuesday press conference, according to Reuters. “I can’t wait 10 years… The American people can’t wait 10 years or 12 years to lay fiber.”

Verizon responded that it is “open and willing to work with companies that may offer complementary services” and has solutions “ready to be deployed.”

The FAA is currently testing Starlink systems at several locations while noting that modernizing air traffic control will require “multiple technologies and companies.” According to Reuters, testing includes three Starlink terminals at an Alaska facility to improve weather information access for pilots, with additional evaluations underway in Oklahoma City and Atlantic City, New Jersey.

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The Government Accountability Office has urged immediate action on aging air traffic control systems, noting one-third are unsustainable, according to Reuters. It has prompted discussions about the Verizon contract, which Reuters reported is under FAA review.

Some Democrats have suggested the contract might be redirected to Starlink, citing Musk’s relationship with President Donald Trump and his role leading the Department of Government Efficiency.

Musk has previously criticized the FAA’s current telecommunications infrastructure.

However, Duffy indicated no single company would provide the complete solution. “It’s not going to be one company. We’re going to need a lot of companies to buy in and help build up the system,” Duffy said.

Verizon, which met with senior FAA officials last week according to Reuters sources, maintains it “remains best positioned” to provide the needed technological enhancements.

The FAA has said it has not made any decision on the contract’s future, while Duffy plans to request “tens of billions of dollars” from Congress for air traffic control reform.

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