FAA may shift $2.4B air traffic control contract to Starlink from Verizon

The FAA is reportedly reconsidering a $2.4 billion contract originally awarded to Verizon to modernize air traffic control communications, with a SpaceX-led team recommending that the project go to Starlink instead, the Washington Post first reported.

The FAA had been set to begin payments to Verizon next month, but recent developments indicate a potential shift in direction. A team from SpaceX has been embedded within the FAA, working on technology upgrades, and some SpaceX employees now have FAA email addresses. The push for Starlink’s involvement has raised concerns over conflicts of interest, given Elon Musk’s DOGE role.

Musk has publicly criticized the Verizon-led system, claiming it is “breaking down very rapidly” and poses a risk to air safety. However, no official FAA safety assessments have confirmed these claims. While the process for reassigning the contract remains unclear, several senior FAA officials have reportedly refused to sign off on the change.

The situation underscores Starlink’s growing influence in federal contracts, with Musk’s companies already securing an estimated $38 billion in government funding. If the FAA follows through, the decision is likely to spark controversy over transparency, procurement rules, and potential favoritism.