The U.S. House Oversight Committee has launched an investigation into the Federal Communications Commission’s (FCC) decision to revoke a $885.5 million subsidy initially awarded to SpaceX’s Starlink program. The subsidy, granted in December 2020 as part of the Rural Digital Opportunity Fund (RDOF), aimed to expand broadband access to underserved rural areas.
However, the FCC rescinded the funding in August 2022, citing concerns that Starlink could not meet the performance requirements outlined in the program, particularly regarding internet speeds.
The investigation is focused on ensuring the FCC’s decision-making process was transparent and free from political influence. Committee chair James Comer sent a letter to the FCC requesting all relevant documents and communications by October 21, 2024. The letter also highlighted the need for expanded rural broadband access, especially in light of emergencies like Hurricane Helene, which left many Americans without communication services.
The FCC confirmed receipt of the request and pledged to respond, but did not give a timeline. Elon Musk responded to news of the investigation with a post on X, simply saying, “Great!”
Chairman Comer Probes FCC Decision to Revoke Starlink Funds pic.twitter.com/vrubPU7NkG
— Oversight Committee (@GOPoversight) October 7, 2024
The FCC’s decision to deny Starlink the subsidy was based on performance data showing the service’s failure to meet required uplink and downlink speeds. Starlink, which operates through a constellation of low-Earth orbit satellites, had committed to providing high-speed internet to 642,000 homes and businesses in 35 states. However, speed tests conducted by the FCC showed that the satellite internet service struggled to meet the program’s minimum speed requirements, which led to the rejection of Starlink’s long-form application.
Elon Musk has publicly criticized the FCC’s decision, calling it “illegal” and arguing that the funding could have been instrumental in emergency situations, such as providing reliable internet access during Hurricane Helene in North Carolina.
Notably, the FCC’s ruling faced internal opposition. Two Republican commissioners dissented, arguing that Starlink was being held to performance standards meant for 2025, which were not in place when the subsidy was awarded in 2020. These commissioners felt the FCC’s expectations were premature, given the advancements Starlink and satellite technology were likely to achieve in the near future.
