US Lawmakers Dig Into FCC's $900M Starlink Snub In Wake Of Hurricane Helene

The Chairman of the US House Committee on Oversight and Accountability, James Comer, is investigating the Federal Communications Commission's (FCC) decision to revoke an award of almost $900 million in rural broadband subsidies to Elon Musk's Starlink.

Comer's probe comes after Starlink was pressed into service in the aftermath of Hurricane Helene, which wreaked havoc in North Carolina. In his letter to FCC Chairwoman Jessica Rosenworcel, Comer wrote: "The devastating impact of Hurricane Helene – and the millions of Americans stranded without cell service or power – illustrates the importance of expanding broadband access to rural areas and using innovative technologies to do so."

The FCC awarded Starlink $885.5 million in subsidies in 2020 after SpaceX began trialing the satellite constellation network service. In 2022, the FCC reversed its decision. Rosenworcel acknowledged the system's merits, but said in a statement: "The question before us was whether to publicly subsidize its still developing technology for consumer broadband."

The rejection was reaffirmed in 2023. However, SpaceX boss Elon Musk – the world's richest man, with a net worth of approximately $260 billion – is still smarting, and recently used his social media mouthpiece, X, to claim: "Had the FCC not illegally revoked the SpaceX Starlink award, it would probably have saved lives in North Carolina."

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The FCC has given temporary approval to enable Starlink satellites with direct-to-cell capability to provide coverage for cell phones in the affected areas of Hurricane Helene. Since the direct-to-cell constellation is still under construction, SpaceX warned that "all services will be delivered on a best-effort basis."

In support of the investigation, Comer has requested all documentation regarding Starlink's application, the decision to award broadband subsidies, and the subsequent decision to pull the award. Comer has also requested "all documents and communications between FCC personnel regarding Elon Musk, the acquisition of X (formerly known as Twitter), and Space Exploration Technologies Corporation (or SpaceX), and Starlink, between December 2020 and the present."

Comer noted that not all FCC commissioners agreed with the reversal decision. He gave the example of Brendan Carr arguing that the FCC had joined a "growing list of administrative agencies that are taking action against Elon Musk's businesses" and stated that "the FCC must ground its decision-making in law and not politics." ®