Ethan Carter
Throughout the 2024 Presidential campaign, the Broadband Equity, Access, and Deployment (BEAD) program, designed to enhance broadband internet access in rural areas, became a focal point for Donald Trump and Republican leaders. They used it to highlight perceived government inefficiency under the Biden administration, particularly regarding its inability to bridge the digital divide. Following Trump’s inauguration, there was a renewed commitment to reinvigorate the program and fulfill the original goal of connecting more people to the internet.
Recent reports from The Verge reveal that under Trump’s administration, the BEAD program has not succeeded in connecting individuals but has instead enriched billionaire allies of Trump. The program swiftly redirected funds to technology billionaires who promised to deliver satellite internet to underserved communities. This included a substantial $738.8 million contract awarded to Elon Musk’s SpaceX and an additional $311 million granted to Jeff Bezos and Amazon’s Project Kuiper.
How Investments in Trump Yield High Returns for Tech Giants
It’s worth noting that Elon Musk invested approximately $250 million in efforts to support Trump’s election, making a return of nearly three times that amount with a single contract an apparent success. Similarly, Bezos’ company donated $1 million to Trump’s inauguration fund and spent $40 million acquiring the rights to a documentary about Melania Trump, making their financial engagement seem worthwhile as well.
The funds allocated to these tech giants emerged as the Trump administration shifted BEAD’s focus from establishing future-proof fiber networks to exploring alternative solutions that could purportedly connect people more rapidly. states attempting to access these funds discovered unexpected stipulations attached to the funding.
For instance, Louisiana received its BEAD funding a year later than anticipated and reportedly only after the state provided subsidies to SpaceX.
How the Shift to Satellite Internet is Impeding Fiber Network Development
The revised BEAD program reclassified areas initially designated for fiber network development as ineligible for fiber connectivity. This effectively relegated these regions to rely on satellite internet solutions, where Musk and Bezos stood ready to capitalize on the situation.
The Verge reported that SpaceX received BEAD funding to provide internet access to areas where its service was already operational, which did not signify any actual expansion of coverage. SpaceX’s Starlink service is not affordable for many low-income families, meaning that having access doesn’t guarantee that people are truly getting connected.
Conditions appear even more unfavorable for Amazon’s Project Kuiper, which boasts a significant contract yet has not successfully launched any operational commercial satellite constellations into orbit. Currently, there are no active customers receiving internet service through Amazon Leo satellites.
If you thought the program was operating more effectively now, with the challenges primarily stemming from the companies involved, you would be mistaken. The Verge discovered that out of 56 states and territories that applied for funding in 2025, 33 had not yet been informed whether they were awarded grants. This is despite the Trump administration’s assurances that the revamped BEAD program aimed to expedite fund distribution and reduce bureaucratic obstacles.
In conclusion, BEAD not only fails to connect individuals previously marginalized by the digital divide, but it also funnels resources into already subsidized ventures owned by billionaires. These enterprises could cease operations at any moment, leaving consumers without sustainable infrastructure to meet their connectivity needs.
Daniel Mercer
