A PYMNTS Company

Lawmakers Raise Concerns Over Potential Musk Influence on FAA Telecom Contract

 |  March 3, 2025

A growing number of U.S. lawmakers are expressing concerns over the possibility of SpaceX CEO Elon Musk interfering in a major telecom contract awarded by the Federal Aviation Administration (FAA). The $2.4 billion contract, initially granted to Verizon, is now reportedly under review, sparking allegations of potential favoritism toward Musk’s Starlink service.

According to Reuters, the FAA awarded Verizon a 15-year contract in 2023 to design, build, and operate a next-generation communications platform. However, a recent report from the Washington Post suggested that the FAA might be reconsidering this decision and could ultimately award the work to Starlink, a satellite-based service owned by Musk.

Senator Maria Cantwell voiced serious concerns late Friday, stating, “Elon Musk’s tweets suggest he’s trying to interfere in the Air Traffic Control system – including trying to cancel FAA’s $2.4 billion competitively awarded telecommunications upgrade contract in favor of a sole source installation of his Starlink services – and sure seem to raise serious red flags.” Per Reuters, Cantwell emphasized that federal law mandates competitive procurement processes with public notice, urging the administration to ensure aviation safety remains the top priority over private interests.

Democratic Senators Adam Schiff and Tammy Duckworth echoed Cantwell’s apprehensions on Friday, questioning the implications of awarding federal contracts to private entities controlled by Musk while he holds an advisory role in the government. Representative Frank Pallone, the leading Democrat on the Energy and Commerce Committee, also raised alarms, stating that such a move “screams corruption.”

Related: Democratic Lawmakers Raise Concerns Over Musk’s Task Force and Taxpayer Data Security

According to Reuters, Musk admitted on Thursday that he had falsely accused Verizon of jeopardizing U.S. air safety through a communications system operated by L3Harris. Verizon, which maintains the largest U.S. wireless network, has pushed back against these claims, asserting that it has only just commenced work on the FAA’s system.

Meanwhile, the FAA has confirmed that no final decision has been made regarding the contract but acknowledged ongoing evaluations. Sources cited by Reuters indicate that the agency is actively reviewing the agreement with Verizon.

This week, the FAA disclosed that it was testing three Starlink terminals in Alaska to determine their effectiveness in providing reliable weather information. The agency also recently dismissed 350 employees as part of a government-wide reduction initiative led by the Department of Government Efficiency (DOGE), though Transportation Secretary Sean Duffy assured the public that none of the fired employees were air traffic controllers or essential to aviation safety.

Further fueling concerns, a team of SpaceX engineers, designated as special government employees, reportedly visited FAA facilities last week.

Source: Reuters