The Federal Aviation Administration (FAA) is set to utilize SpaceX’s Starlink internet system to upgrade its information technology networks, sparking fresh concerns about conflicts of interest. This is particularly pertinent given CEO Elon Musk’s dual role in overseeing government agencies that regulate his businesses while also advocating for federal budget cuts, including at the FAA.
Although the contract’s specifics were not immediately disclosed, SpaceX remains heavily reliant on federal contracts, particularly from NASA. Its Starlink satellite internet provides service to both government and private clients globally.
This development emerges amid Musk’s efforts to implement substantial reductions in federal expenditure, which involve potential staffing cuts at the FAA. Consequently, certain critics are expressing reservations about possible conflicts of interest, given his oversight of governmental bodies that are responsible for regulating his enterprises. Musk, a notable supporter of President Donald Trump during the last election, is leading the Department of Government Efficiency, which is actively working to reduce federal personnel with the aim of eliminating waste and fraud.
The FAA revealed on Musk’s social media platform, X, on Monday night that it is conducting trials with one Starlink terminal at its Atlantic City, New Jersey, facility, in addition to two at sites in Alaska that are deemed “non-safety critical.” According to the post, “Alaska has long had issues with reliable weather information for the aviation community,” and “the 2024 FAA reauthorization required the FAA to fix telecommunications connections to fix those needs.”
Bloomberg initially reported on the FAA’s adoption of Starlink, stating that the system would eventually include 4,000 terminals and be deployed over the next 12 to 18 months.
There is widespread agreement that the FAA’s communication systems are in urgent need of upgrading. A December report from the Government Accountability Office was entitled “Urgent FAA actions are needed to modernize aging systems.” Shortly after a fatal crash involving a military helicopter and a regional jet at Ronald Reagan Washington National Airport, Transportation Secretary Sean Duffy announced discussions with Musk, aimed at helping the FAA “remake our airspace” quickly.
In any case, the FAA already has an existing agreement with Verizon to update its information technology networks. In a post on X on Monday, Musk stated that “The Verizon system is not working and so is putting air travelers at serious risk.” However, Verizon has defended the quality of its work for the FAA. Verizon spokesman Rich Young stated in a statement to CNN, “Verizon is bringing the nation’s most reliable network to the FAA at a time when critical infrastructure and technology enhancements are needed most.” He added, “We’re at the beginning of a 15-year contract with the FAA that will help the agency modernize its technology. Protecting Americans who rely on a safe, secure and functioning air traffic control system is more important than ever, and our enhancements will help make that happen.”
Musk has a wide array of business interests that are subject to oversight by multiple federal agencies. In addition to the FAA and NASA, these include the National Highway Traffic Safety Administration, the Securities and Exchange Commission, the Occupational Safety and Health Administration, the National Labor Relations Board, and the Consumer Financial Protection Bureau. He has, over time, developed conflicts with many of these agencies.
At the same time, his businesses, including SpaceX and Tesla, have obtained significant benefits from a number of government initiatives and regulations, contributing to his status as one of the world’s wealthiest individuals. For example, Tesla’s early success was heavily supported by low-interest loans for its electric vehicles, tax credits for EV buyers, and the sale of regulatory credits to legacy automakers who sought to meet federal emission standards; without such support, Tesla, which is the main source of his wealth, might not exist now.
Richard Painter, a law professor at the University of Minnesota who served as chief White House ethics lawyer under President George W. Bush and is now Vice Chair of government watchdog Citizens for Responsible and Ethics in Washington, argued in prepared remarks for a House committee hearing on space mining, that such mining may substantially enrich Musk in the future. Space mining carries “serious risk” of new conflicts of interest, given NASA’s potential role and Musk’s duties in the Trump administration.
SpaceX is scheduled to launch a probe later this week for AstroForge, a space exploration firm that plans to perform a flyby of an asteroid as a test for future mineral mining in space. Painter added that Musk should be required to “publicly disclose his financial information, (like) every other senior official in the White House.” He described the designation of Musk as a “special government employee” to avoid having to make his financial interests public as a “charade,” according to Painter, who is a frequent critic of Trump.
