Story perspectives

Trump Admin Directs $738M BEAD to Starlink, Rural Risks

6/22/2026

Summary

Story summary

U.S. President Donald Trump, via Secretary Howard Lutnick, revised Broadband Equity, Access, and Deployment (BEAD) rules to award the lowest-cost provider, favoring SpaceX’s Starlink.
The change directs $738.8 million in grants to Starlink, raising its U.S. customer base about 24 percent and covering 476,000 unserved locations.
Advocates warn that shifting $21 billion of the $42 billion BEAD budget toward satellite will leave many rural areas with slower, less reliable, costlier internet, widening digital divide.

History

Historical Context

Congress created the FCC in the 1934 Communications Act to regulate interstate wire and radio services. On February 8 1996 President Bill Clinton signed the Telecommunications Act, the first major overhaul in 62 years, directing the FCC to promote nationwide broadband deployment. Decades later the Trump administration’s BEAD rules pursued the same goal by allocating federal funds to satellite-based broadband projects for rural areas.

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Story summary

U.S. President Donald Trump, via Secretary Howard Lutnick, revised Broadband Equity, Access, and Deployment (BEAD) rules to award the lowest-cost provider, favoring SpaceX’s Starlink.
The change directs $738.8 million in grants to Starlink, raising its U.S. customer base about 24 percent and covering 476,000 unserved locations.
Advocates warn that shifting $21 billion of the $42 billion BEAD budget toward satellite will leave many rural areas with slower, less reliable, costlier internet, widening digital divide.

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