Elon Musk Reignites Feud with Biden Administration Over Internet Investments

The FCC had previously offered Elon Musk-owned company SpaceX a deal to provide this internet coverage to U.S. citizens. This deal was later revoked in 2022. The decision to reject Starlink drew criticism online, with concerns that the math on the decision didn’t add up.

“This is just one piece of a much bigger story,” Biden wrote. “Under my leadership, over 40,000 infrastructure projects have been announced across our nation.”

“In 2020, the FCC secured a commitment from Starlink to offer high-speed internet in rural areas for $1,377 per location in support,” he wrote in an X post. “The Biden administration rescinded that deal, and is now spending $5,125 per location.”

While Musk’s response was toward the cost analysis put forward by Carr, it’s hard to imagine he also wasn’t expressing his frustration about his own company, SpaceX, missing out on the contract.

Previously the company was enjoying an $888.5 million subsidy for its satellite internet service Starlink to be installed in rural areas across the country. The U.S. Federal Communications Commission (FCC) cited a failure of Starlink to meet certain program requirements. It also accused Starlink of being unable to demonstrate its ability to deliver on its promise to complete the project.

The company plans to continue expanding coverage to as many people as possible. In some areas of the world, Starlink is currently the only way to get access to high-speed internet. SpaceX refers to Starlink as a “constellation,” otherwise known as an interlinked network of orbital satellites.

In the past, Biden has said that Musk’s connections with other countries are “worthy of being looked at.” He has accused Elon of spewing lies across social media. For his part, Elon has been an outspoken critic of Biden, accusing him of being someone who just reads off a teleprompter and fails to get anything done.

When Biden spoke at a fundraising event, he promised that the fiber-optic cable would be manufactured in Virginia as well. The goal is to help bring some manufacturing work to the state and help boost the economy.

Forbes reported in 2023 that 42 million Americans still don’t have access to broadband internet speed. A broadband connection is defined by the FCC as a connection with a download speed of at least 25 megabits per second (Mbps) and an upload speed of 3 Mbps.

A quicker connection allows for higher work productivity and is critical for memory-demanding content like video streaming. Without a good internet infrastructure, a user might find themselves with constant connection interruptions that make work and daily life more difficult.

“Extending high-speed fiber lines to these same areas will likely cost somewhere in the neighborhood of $3 billion based on past bidding patterns and analysis,” he wrote.

“It’s just as essential today as electricity was a century ago,” he said (via The Daily News). “High-speed internet isn’t a luxury anymore. It’s an absolute necessity.” His administration hopes to provide 300,000 North Carolina residents with high-speed access by the close of 2026.