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The Federal Aviation Administration (FAA) has made the decision to implement SpaceX’s Starlink internet technology to enhance the digital networks used for managing air traffic across the United States. This development has sparked new discussions regarding potential conflicts of interest involving CEO Elon Musk, particularly in his capacity of advocating for budget reductions in federal entities, including the FAA itself.

The details regarding the financial specifics of this contract were not immediately disclosed. SpaceX, a privately owned aerospace firm, heavily relies on government contracts, particularly from NASA. The Starlink satellite internet service extends to both governmental and private clients globally.

This contract emerges at a time when Musk is advocating for significant reductions in federal spending, which includes potential job cuts at the FAA. Detractors are expressing concerns over conflicts of interest due to his role in supervising federal agencies responsible for regulating his business ventures.

Musk, a notable backer of former President Donald Trump during the last election, is at the helm of the Department of Government Efficiency, where he is making strides to reduce federal staffing in the pursuit of cutting waste and fraud.

In a recent update shared on Musk’s social media platform X, the FAA announced that it is testing one Starlink unit at its facility in Atlantic City, New Jersey, along with two more in “non-safety critical locations” in Alaska.

“Alaska has long faced challenges with consistent weather data for the aviation sector,” the agency noted. “The 2024 FAA reauthorization mandates the FAA to enhance telecommunications to address these issues.”

The FAA’s initiative to utilize Starlink was first highlighted by Bloomberg, which reported that the project will ultimately incorporate 4,000 Starlink terminals over the next 12 to 18 months.

There is a consensus that the FAA’s aging computer and communication systems are in acute need of modernization. A report released in December by the Government Accountability Office underscored that “Immediate FAA actions are essential to upgrade obsolete systems.”

Following a tragic incident involving a military helicopter and a regional jet in the vicinity of Ronald Reagan Washington National Airport, Transportation Secretary Sean Duffy announced that he had engaged in discussions with Musk about assisting the FAA in “revamping our airspace” with urgency.

The FAA currently has a contract with Verizon for enhancing its IT networks. In a post on X, Musk stated, “The Verizon system is ineffective and poses serious risks to air travelers.”

Musk holds various business interests subject to oversight by federal regulatory bodies. In addition to the FAA and NASA, he is also monitored by the National Highway Traffic Safety Administration, the Securities and Exchange Commission, the Occupational Safety and Health Administration, the National Labor Relations Board, and the Consumer Financial Protection Bureau. Over the years, he has frequently clashed with several of these agencies.

Nonetheless, Musk’s enterprises, including SpaceX and Tesla, have greatly benefited from numerous government initiatives and regulations. These have played a significant role in making him the wealthiest individual globally. Without the government’s early support for Tesla through low-interest loans, tax incentives for electric vehicle buyers, and sales of regulatory credits to traditional car manufacturers, Tesla, the primary source of his fortune, might not have flourished.