Amid a Musk-led overhaul, the FAA starts doing business with SpaceX

The Federal Aviation Agency has started testing Starlink terminals for upgrades to the networks that manage airspace, creating the latest conflict of interest between the US government and Elon Musk. The FAA (fittingly on the social network Musk also owns) that it is testing a Starlink terminal in Atlantic City, NJ, and two terminals in Alaska. The post claims that the department had been considering using the SpaceX tech since the prior presidential administration.

The agency, which oversees all areas of civil aviation, has levied and required over the years related to various SpaceX operations. Most recently, the agency SpaceX to investigate what caused a mid-flight explosion with its Starship rocket last month.

A source told that Musk had approved a shipment of 4,000 Starlink terminals to the FAA last week. The agency has an existing contract with Verizon Communications, worth $2 billion, for supporting and maintaining its infrastructure. Bloomberg‘s sources were unsure how the Starlink tests would impact the Verizon deal.

This isn’t the first time a Musk-owned business has benefited since the South African billionaire inserted himself into the US political landscape. He and his so-called DOGE group has been leading cuts within the federal ranks, including at the FAA and at other departments that oversee his companies. For instance, the National Highway Traffic Safety Administration saw about a reduction to its staff this month, including cuts to the small division overseeing autonomous vehicles such as those from Tesla.