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ICYMI: FAA targeting Verizon contract in favor of Musk’s Starlink, sources say [WaPo]

Feb 28, 2025

End Citizens United (ECU) President Tiffany Muller issued the following statement on a report that the FAA is in the process of canceling a contract to modernize its communications network in order to award that contract to Elon Musk:

“With every passing day, the line between the government and Elon Musk’s business empire gets blurrier because he’s the one erasing it. The FAA has a responsibility to modernize and protect public safety, but that process can’t be hijacked simply because Musk wants another taxpayer-funded payday. A billionaire with a glaring conflict of interest has no business controlling decisions that impact millions of lives. The safety of the American people cannot be put at risk just so Musk can get even richer.”

Washington Post: FAA targeting Verizon contract in favor of Musk’s Starlink, sources say

Ian Duncan, Hannah Natanson, Lori Aratani and Faiz Siddiqui
02/27/25

Key Points:

  • The Federal Aviation Administration is close to canceling a $2.4 billion contract to overhaul a communications system that serves as the backbone of the nation’s air traffic control system and awarding the work to Elon Musk’s Starlink, according to two people briefed on the plans.
  • The move to cancel a major contract in favor of a venture led by Musk — who is leading President Donald Trump’s disruptive overhaul of the federal government through the U.S. DOGE Service — would represent a significant test of protections against conflicts of interest in government projects. It would be an especially extraordinary step for the typically cautious FAA, whose systems are vital to the safety of millions of air travelers every day.
  • Several of the SpaceX employees now have FAA email addresses, according to two people who have seen the addresses, speaking on condition of anonymity for fear of retribution. FAA regulates SpaceX and has alleged that the company has violated safety rules relating to its rocket launches.
  • But the Starlink plan adds to Musk’s existing conflicts of interest at the FAA relating to SpaceX, according to John P. Pelissero, the director of an ethics center at Santa Clara University.
  • Pelissero said it appears that “because of Musk’s current position in DOGE and his closeness to Trump he and his company are getting an advantage and getting a contract.”
  • “Who’s looking out for the public interest here when you get the person who’s cutting budgets and personnel from the FAA, suddenly trying to benefit from still another government contract?” Pelissero said.
  • The agency was scheduled to make a final decision on whether to start paying Verizon for the contract next month, said one of the people, who spoke on the condition of anonymity because they were not authorized to speak publicly.
  • Instead, Musk’s team determined the job should go to Starlink, the person said. But the process for unwinding a contract and awarding it to another company is lengthy and has not been followed in this case so far, the person said.
  • Several senior FAA officials have refused to sign paperwork authorizing the switch, according to the person, who has been briefed on the internal deliberations and resulting fallout, so Musk’s team is now seeking help from the acting administrator of the agency, Trump appointee Chris Rocheleau, and Duffy.

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