Musk’s Starlink gets FAA contract raising conflict of interest concerns

• The Federal Aviation Administration said it is testing the use of Elon Musk’s Starlink. Musk said the switch was in part due to issues with services provided by Verizon, which had a contract with the federal agency. 
• Starlink is expected to install 4,000 terminals that are set to be deployed in Atlantic City and at non-safety critical sites in Alaska.
• This decision has led to concerns over potential conflicts of interest involving Musk.

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Two years after Verizon secured a $2 billion contract to upgrade the Federal Aviation Administration’s IT infrastructure, the agency is now switching to Space X’s Starlink. In a post to X Monday, Feb. 24, Starlink CEO Elon Musk said the Verizon system isn’t working and it’s putting air travelers at risk. 

The FAA confirmed Monday, the Starlink terminals would be used to assist air traffic controllers at two stations in Alaska.

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Last week, Musk approved the shipment of 4,000 Starlink terminals for use by the FAA with the administration confirming one terminal is already being used for testing at the FAA’s air traffic control lab in Atlantic City, New Jersey.

Bloomberg reported the program will be called TDM X, with it being fully functional within 12 to 18 months. 

What’s going on with Verizon?

It’s not clear whether the FAA’s use of Starlink terminals will complicate the administration’s contract with Verizon.

Verizon hasn’t commented on the matter. 

Are there conflicts of interest?

The FAA’s contract with Starlink comes while Musk leads efforts as the head of the Department of Government Efficiency, to make deep cuts in government spending, including staffing cuts at the FAA.

While details of the contract haven’t been revealed, it raises questions about conflicts of interest. Musk has numerous business interests that are overseen by federal agencies with SpaceX being a private aerospace company relying heavily on government contracts.

Richard Painter, a University of Minnesota professor, spoke to Congress about how Musk’s companies have benefited from the government.

In a prepared speech about space mining, Painter said mining projects in space could make Musk significantly richer. Painter said Musk should be required to “publicly disclose his financial information like every other senior official in the White House,” due to conflicts of interests.

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The move also comes amid a rise in deadly airplane incidents across the country in recent months.

The FAA said it has long considered using Starlink technology to increase safety in remote areas.