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Starlink, the satellite internet service controlled by billionaire Elon Musk and his rocket company SpaceX, is expanding its footprint in the federal government weeks after the billionaire began slashing the federal workforce and agency budgets under President Donald Trump’s direction.
Multiple federal agencies are exploring the idea of adopting SpaceX’s Starlink for internet access — and at least one agency, the General Services Administration (GSA), has done so at the request of Musk’s staff, according to someone who worked at the GSA last month and is familiar with its network operations — despite a vow by Musk and Trump to slash the overall federal budget.
Starlink’s expansion is sparking outcry among congressional Democrats because of Musk’s dual positions: He is the founder and CEO of SpaceX, which owns Starlink, and a senior adviser to Trump with an expansive portfolio across the government. As a shareholder in SpaceX, he could gain financially if Starlink is granted additional business.
Starlink, which routes internet traffic through low-orbit satellites, has gained popularity in rural areas and disaster zones because it doesn’t require fiber cables or cellular towers. Users say the Starlink terminals have real advantages in terms of how easy they are to set up and how mobile they are. One downside, though, is that Starlink satellites have an expected lifespan of five years, so the company must replenish them.
The growth of Starlink has also given Musk unusual influence in the U.S. and abroad, as he can unilaterally decide to deploy or withhold internet service during moments of disaster, war or other crises.
At least seven federal offices including the Defense and Commerce departments were already established customers of Starlink when Trump took office in January, according to a federal government database of awarded contracts. The database lists $4.1 million in federal contracts in 2022 and $1.9 million in 2023. The existing spending includes a test at sea by the National Oceanic and Atmospheric Administration.
Now, the number of customers appears set to grow.
According to a person who worked at GSA last month and is familiar with its network operations, the agency had installed Starlink by mid-February. The service was being used by staff members of Musk’s Department of Government Efficiency, this person said. NBC News also saw internal correspondence confirming it had been installed at the GSA’s offices in Washington at 1800 F Street NW. Starlink was installed within days of the DOGE team’s request, the person said, while a more typical process should take weeks or months for reviews concerning security, procurement, business needs and more. A separate person working at GSA showed NBC News documentation indicating that a Starlink network was available for use at the facility.
The GSA did not immediately respond to a request for comment.
One of the agencies deliberating a contract with Starlink burst into public debate last week: the Federal Aviation Administration, which for years has been looking to upgrade the infrastructure underlying its communications systems. The FAA awarded a $2.4 billion contract to Verizon in 2023, and although the contract is due to run for 15 years, Musk posted on X that he wants to pivot to a rival Starlink system. He said on X that Starlink was sending terminals at “no cost to the taxpayer.”
It’s not clear exactly when the FAA began considering the use of Starlink. Musk approved a shipment of 4,000 Starlink terminals to the FAA last month, Bloomberg News reported.
A second agency is Customs and Border Protection, which has issued internal paperwork to authorize an evaluation of Starlink to help monitor the U.S. border, a spokesperson told FedScoop, a news site that covers the federal government. CBP’s interest in Starlink goes back at least to 2023, before Trump returned to office, according to a Department of Homeland Security document reported by FedScoop. CBP and DHS did not immediately respond to requests for comment.
And officials at a third federal agency are comparing Starlink to Verizon as a tool for communicating during a catastrophe, according to one person involved in the discussions who asked that their agency not be named in order to avoid reprisal. That process was initiated in February and appears to be under consideration as part of a normal process, the person said.
It’s unclear whether the agencies are coordinating their contract talks, and what dollar value any of the potential contracts may have. None of the three agencies appears to have made a final decision.
The White House, in response to written questions from NBC News, pledged to comply with ethics rules.
“President Trump and his entire administration is committed to executing a head to toe assessment of every contract the American people are funding with their taxpayer dollars,” White House spokesperson Harrison Fields said in a statement.
“Any contracts connected to Elon Musk’s very successful companies will comply with every government ethics rule as it pertains to potential conflicts of interests,” he said.
The White House did not immediately respond to a follow-up question on whether Starlink was in use at GSA.
Musk has publicly called for other federal agencies to adopt Starlink or award grant money to Starlink, including the Department of Agriculture and the Federal Communications Commission. In January, Musk said he was using Starlink from Trump’s Mar-a-Lago resort in Florida.
The possible deals for SpaceX’s Starlink are one of the tangible ways that Musk and his companies could benefit from the turnover in presidential administrations. The Trump administration has also ended at least two investigations into Musk companies that predated Trump’s return to power: a Justice Department probe into SpaceX hiring, and a Labor Department inquiry into alleged workplace discrimination at Tesla.
Musk’s statements about Starlink and the federal government have attracted some scrutiny.
Sen. Maria Cantwell, D-Wash., the ranking member on the Senate Commerce Committee, said Musk appeared to be trying to interfere in an already-awarded, 15-year federal contract with his statements about the FAA.
Musk’s posts on X “sure seem to raise serious red flags,” she said in a statement.
Cantwell said federal law requires procurements be competitive and made with public notice.
“We need answers now about how the Administration will enforce these laws to ensure aviation safety takes precedence over private gain,” she said.
The FAA has been close to canceling its existing Verizon contract, The Washington Post reported.
On Wednesday, SpaceX said media reports were false and that it was not trying to take over existing government contracts at the FAA.
“Starlink is a possible partial fix to an aging system,” SpaceX said in a post on X. The company said it was working with the FAA “to identify instances where Starlink could serve as a long-term infrastructure upgrade for aviation safety.”
Musk did not respond to requests for comment.
Verizon has said it’s not backing down from its FAA contract.
“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,” Verizon said in a statement last week.
“We are at the beginning of a multi-year 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.”
Verizon said it had no further comment beyond the statement.
In a statement, the FAA did not directly address the Verizon contract but said: “To update our air traffic control system, it will require multiple companies and multiple technologies. That is why we are testing multiple communication technologies, including satellites, fiber and wireless to ensure the safety of the national airspace system. Beyond that, no decisions for other deployments have been made. Those decisions will be made by the FAA Administrator.”
Sales to government agencies are only one part of Starlink’s business. Other customers include United Airlines and the three biggest cruise ship operators. During the Super Bowl, T-Mobile broadcast an ad touting its partnership with Starlink to improve service in rural areas. More than 5 million people are using Starlink globally across 125 countries and territories, according to SpaceX.
For home use, Starlink advertises its service at $120 a month with a one-time $149 setup fee. It also advertises a “low usage” option for $80 a month.
Musk said in an X post in November that Starlink revenue “is how we are paying for humanity to get to Mars,” although SpaceX generally does not disclose the profitability or revenue from its Starlink division. In 2022, Musk said Starlink was losing money.
Starlink’s business with the federal government grew during the Biden administration, despite the sour relationship between Musk and then-President Joe Biden. In 2023, SpaceX won a Pentagon contract to develop a military version of Starlink called Starshield.
The Navy has been testing out Starlink on its warships but hasn’t made a large deployment yet. In 2023, senior crew on one ship broke Navy rules when they acquired a Starlink setup and used it while deployed at sea, leading to the court-martialing of at least one senior crew member, Navy Times reported.
Other satellite companies are racing to develop competitors to Starlink. Eutelsat, a European company, said Tuesday it was in talks with the E.U. to supply internet access to Ukraine with its OneWeb service. Amazon has been developing a low-orbit satellite internet service called Project Kuiper.
The Trump administration is also reviewing a proposed merger of two satellite operators — SES and Intelsat — whose combination would create a more powerful competitor to Starlink.
David Ingram is a tech reporter for NBC News.
Jonathan Allen is a senior national politics reporter for NBC News.
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