Elon Musk’s satellite company, Starlink, is in talks to potentially take over a $2.4 billion contract from Verizon with the Federal Aviation Administration (FAA) to upgrade airspace management systems. While the contract hasn’t been officially transferred, FAA officials have begun seeking funds for a possible Starlink deal, according to sources familiar with the situation. These instructions were reportedly given verbally, which is unusual and suggests an effort to avoid creating a paper trail. Obtaining a federal contract through ties to a public official, as appears to be the case with this deal, violates the Foreign Corrupt Practices Act (FCPA), which prohibits bribery or other illicit activities in obtaining government contracts (Source: Department of Justice).
The anti-bribery provisions of the FCPA also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States. (Source: Justice.gov)
It’s still unclear whether Verizon’s contract, which it won through a fair and legal procurement process, is officially canceled or if a deal with Starlink has been formalized. Neither the FAA nor SpaceX provided a comment on the matter.
Musk, who leads the Department of Government Efficiency (DOGE) under President Trump, has been involved in extensive staffing cuts within the FAA, including cuts to essential roles like air traffic control support and safety staff. His influence in DOGE and his business interests raise significant concerns over potential conflicts of interest, especially given that SpaceX has benefited from billions of dollars in government contracts. Musk has openly criticized the FAA, even pushing for the resignation of its administrator and offering SpaceX engineers to help improve air safety.
In a related development, last month Bloomberg reported that Musk approved sending 4,000 Starlink terminals to the FAA, claiming the move was at no cost to taxpayers for emergency use. Additionally, there are discussions about Starlink replacing Verizon’s telecommunications contract, which was awarded through a competitive and transparent procurement process. Musk has made claims about Verizon’s system failing, although he later corrected himself on these statements.
Sources
https://www.rollingstone.com/politics/politics-features/elon-musk-starlink-faa-officials-find-funding-1235285246/
https://www.reuters.com/world/us/lawmakers-question-musk-influence-over-verizon-faa-contract-2025-02-28/
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