Musk's pursuit of $2.4 billion FAA contract sparks controversy

A growing number of US lawmakers are raising questions about the potential for SpaceX CEO Elon Musk to interfere or take over a $2.4 billion Federal Aviation Administration telecommunications contract with rival Verizon.

Musk, a senior adviser to president Donald Trump who owns satellite company Starlink, has sharply criticized the current FAA telecom system.

"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," Senator Maria Cantwell said late Friday.

In 2023, the FAA awarded Verizon a contract worth up to $2.4 billion over 15 years to design, build, and operate the FAA’s new next-generation communications platform.

On Wednesday, the Washington Post reported that the FAA was close to canceling the $2.4 billion 15-year contract awarded to Verizon to overhaul a communications system and awarding the work to Musk's Starlink.

The FAA said it has not made any decision on the contract but sources told Reuters the FAA is reviewing the contract.

SpaceX and Musk did not immediately respond to a request for comment.

"Federal law requires procurements be competitive and made with public notice, Cantwell said. "We need answers now about how the Administration will enforce these laws to ensure aviation safety takes precedence over private gain."

Democratic Senators Adam Schiff and Tammy Duckworth on Friday both raised questions about the FAA potentially awarding billions of dollars to private companies controlled by Musk while he serves as a government employee.

Representative Frank Pallone, the top Democrat on the Energy and Commerce Committee, echoed that concern, adding such an award "screams corruption."

Musk on Thursday admitted he falsely accused Verizon of putting US air safety at risk through a communications system that is actually operated by L3Harris.

Verizon, which operates the largest US wireless network, rejected Musk's initial accusation noting it has only begun work on the system.

This week, the FAA said it was testing three Starlink terminals at a government facility in Alaska to address concerns about reliable weather information.

The FAA fired 350 employees earlier this month as part of a DOGE-directed effort to shrink the government. Transportation Secretary Sean Duffy said none of the fired employees were air traffic controllers or critical for aviation safety.

A DOGE team of SpaceX engineers acting as special government employees visited FAA facilities last week.