FAA Reportedly Close to Canceling $2.4 Billion Verizon Contract in Favor of Elon Musk’s Starlink

The Federal Aviation Administration (FAA) is reportedly nearing a decision to cancel Verizon’s $2.4 billion contract for air traffic communication upgrades in favor of Elon Musk’s Starlink, according to a new report from The Washington Post. The move has raised serious concerns about conflicts of interest, given Musk’s increasing influence over the federal government.

Verizon was awarded the contract in 2023 to improve communication systems between FAA offices and air traffic control facilities. However, Musk has been publicly critical of Verizon’s performance, claiming on X that the system is “breaking down very rapidly” and poses a risk to air travelers—though he has provided no evidence to support this assertion.

Adding to the controversy, SpaceX employees have reportedly been embedded within the FAA, even receiving government email addresses, sparking fears of self-dealing. The Washington Post also reports that the proper procedures for canceling Verizon’s contract have not been followed.

Musk insists that Starlink’s involvement is temporary and not a taxpayer expense. “The Starlink terminals are being sent at NO COST to the taxpayer on an emergency basis to restore air traffic control connectivity. The situation is extremely dire,” he tweeted.

At the same time, Musk’s influence over federal agencies is growing, as he continues to push for massive layoffs and restructuring. The Associated Press recently reported that 400 FAA employees—many working on critical systems—were laid off. Meanwhile, Musk has called for retired air traffic controllers to return to work, further highlighting the instability within the agency.

With Musk’s close ties to the Trump administration and Republican control of Congress, regulatory oversight appears unlikely. The Supreme Court is now set to decide whether Trump must restore funding for several cut programs, but Musk’s unchecked influence over government operations remains a growing concern.