While Elon Musk continues to reshape federal bureaucracy under the guise of “efficiency,” his company, Starlink, appears poised to take over a multibillion-dollar government contract currently held by Verizon.
According to The Washington Post, citing two unnamed sources familiar with the matter, the Federal Aviation Administration (FAA) is close to canceling a $2.4 billion contract intended to modernize the nation’s air traffic control communication system and instead awarding it to the SpaceX subsidiary. The reports have been corroborated by Bloomberg and The Associated Press.
It remains uncertain how the transition would unfold—whether the FAA would allocate a portion of the work to Starlink while allowing Verizon to continue its efforts or terminate Verizon’s contract entirely in favor of Starlink. Regardless of the approach, the decision is likely to spark allegations of favoritism, cronyism, and conflicts of interest. Musk remains the public face of the Department of Government Efficiency’s initiative to cut costs and reduce the federal workforce, despite the structural risks associated with such measures.
For several days, Musk has cast doubt on Verizon’s system, alleging without substantiation that it is “not working and so is putting air travelers at serious risk.” Earlier today, he posted on X that the Verizon communication system is “breaking down very rapidly” and that the FAA’s assessment predicts “single digit months to catastrophic failure, putting air traveler safety at serious risk.” He also claimed that Starlink terminals would be provided “at NO COST to the taxpayer on an emergency basis to restore air traffic control connectivity.”
This follows a familiar pattern in which Musk’s public statements on X regarding the FAA seem to materialize into official actions. Previously, he called for the resignation of FAA Administrator Michael Whitaker after the agency fined SpaceX for failing to obtain approval for rocket launch modifications. Following repeated public criticism, Whitaker stepped down on the day of Donald Trump’s inauguration.
In recent weeks, a SpaceX team has been embedded within the FAA, working on modernizing the agency’s aging technology infrastructure. U.S. Department of Transportation Secretary Sean Duffy stated that their objective is to develop “a new, better, modern, and safer system.”
According to The Washington Post, multiple SpaceX employees now have FAA email addresses. One SpaceX employee shared a photo of the team on X, stating, “Working to improve the safety of the national air space system.”
The FAA was scheduled to begin payments on Verizon’s contract next month. However, according to an unnamed source cited by The Post, the SpaceX team has recommended that the contract be reassigned to Starlink instead. So far, the official process for terminating one contract and awarding another has reportedly not been followed. Several senior FAA officials have refused to sign off on the contract change, prompting Musk’s team to seek assistance from a Trump-appointed official within the agency.
Musk’s financial success has been significantly bolstered by government funding. According to The Washington Post, his companies have collectively received approximately $38 billion in government contracts, loans, subsidies, and tax credits.
Over the past 11 weeks, there have been four commercial airline crashes worldwide, along with multiple private plane crashes and several near misses. At the same time, the air traffic control system is reportedly in turmoil, exacerbated by extensive staffing cuts. Although air travel remains statistically safer than ever before, public perception increasingly suggests that the global aviation system is under strain.
