Elon Musk's Starlink in line for deal with FAA, raising potential ethical concerns
Elon Musk's Starlink satellite internet service could be part of the Federal Aviation Administration's plan to upgrade the nation's aging air traffic control systems.
Starlink's internet equipment is being tested in least two different FAA facilities. Starlink is also preparing to take over a $2 billion contract currently held by telecom provider Verizon, the Associated Press reported.
Starlink, which is owned by Musk's SpaceX, provides satellite internet access for residential and business customers. It bills itself as the most "advanced internet system," providing access to users in remote locations. The FAA does not currently rely on Starlink to power its air traffic control system, which monitors more than 45,000 flights and 2.9 million airline passengers per day.
Musk this week criticized the FAA's air traffic control network, writing on X that the "Verizon system is not working and so is putting air travelers at serious risk."
Verizon spokesperson Kevin Israel told CBS News that the technology Musk is referring to are the legacy systems run by defense contractor company L3Harris, not by Verizon.
"Our company is working on building the next generation system for the FAA which will support the agency's mission for safe and secure air travel," he said. "We are at the beginning of a multiyear contract to replace antiquated, legacy systems. Our teams have been working with the FAA's technology teams and our solution stands ready to be deployed. We continue to partner with the FAA on achieving its modernization objectives."
Musk on Thursday acknowledged his mistake in criticizing Verizon. "Correction: the ancient system that is rapidly declining in capability was made L3Harris. The new system that is not yet operational is from Verizon," he said Thursday afternoon on X.
L3Harris didn't immediately respond to a request for comment.
Broad overhaulThe Department of Transportation is reviewing a range of federal contracts, including with Verizon, as the agency moves to overhaul the air traffic control infrastructure used to direct flights around the U.S.
A source familiar with the matter said it's not clear if Starlink can meet the needs specified in the FAA's contract with Verizon. But the satellite telecom provider could be one of several technologies under consideration as part of a broad overhaul of the nation's air control system.
On Monday, the FAA said on X that it "has been considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska." The agency also said it is testing one Starlink terminal at the FAA's facility in Atlantic City, New Jersey, and at two terminals at "non-safety critical sites" in Alaska.
Bloomberg News reported on Monday that Musk last week approved 4,000 Starlink terminals to be shipped to the FAA for testing, citing a person familiar with the matter.
The FAA told CBS News that "no decisions have been made" about a long-term contract to upgrade its air traffic control systems.
Representatives for Musk didn't respond to a request for comment.
Lawmakers and experts on government contracts have expressed concern about potential conflicts of interest for Musk, who is spearheading the Trump administration's effort to slash federal funding even as companies like SpaceX do business with the government.
Asked by CBS News whether Musk's involvement could pose a conflict of interest given that the FAA regulates SpaceX and his companies are a major user of the airspace, U.S. Transportation Secretary Sean Duffy said earlier this month that the entrepreneur isn't involved in setting agency policy.
"I was very conscious of anyone who comes in — I don't want to see conflicts of interest," Duffy said on Feb. 19 from the FAA's ATC Command Center in Warrenton, Virginia. "So [Musk] was talking to air traffic controllers, didn't plug into the system, but looked at the terminals that they use... They had a back and forth about what works well for you, what doesn't work well."
"[T]hey spoke freely about these are the problems that we have. And so it was nothing about the way that SpaceX uses the airspace. It was about how do controllers do their job," Duffy added.
Jessica Tillipman, associate dean for government procurement law studies at The George Washington University Law School, noted that federal regulations prohibit government contractors from having conflicts of interest, and warn even against the mere appearance of such conflicts.
Scott Amey, general counsel for the Project on Government Oversight, a nonpartisan watchdog focused on reducing government corruption, told CBS MoneyWatch that Musk's close relationship with President Trump could amount to a conflict of interest.
"You do worry if there is pressure from the top, even from the president himself, to favor his system over the existing system," Amey said. "People could be afraid to lose their jobs and will do whatever they can to please Elon Musk."
Such contracting decisions should be made "by career civil servants doing what is in the best interest of taxpayers," he added.
Some Democratic lawmakers said the FAA moving to adopt Starlink's technology raises potential ethical concerns.
"How much richer will Elon get with an FAA contract to another one of his companies? My ELON MUSK Act would stop this blatant corruption," Rep. Mark Pocan, a Democrat from Wisconsin, wrote on X on Tuesday, referring to proposed legislation that would direct federal agencies to end any contracts held by a special government employee, similar to bans that apply to members of Congress and other federal employees.
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Megan Cerullo