The U.S. House Oversight Committee has launched an investigation into the Federal Communications Commission’s (FCC) decision to deny SpaceX’s Starlink $885.5 million in rural broadband subsidies.
The probe, initiated by Committee Chair James Comer, seeks to determine whether the FCC followed proper regulatory processes or if political motivations influenced the decision. The FCC’s ruling, which was reaffirmed in December, had been contested by SpaceX, which claimed it could deliver the promised internet service.
The FCC initially awarded $9.2 billion in December 2020 to over 300 bidders to expand high-speed broadband in rural areas. SpaceX’s Starlink was among the winners, securing $885.5 million to provide service to 642,000 rural homes and businesses across 35 states. However, the FCC revoked the award in August 2022, citing speed-test data that raised doubts about Starlink’s ability to meet program requirements.
SpaceX CEO Elon Musk has strongly criticized the FCC’s decision, calling it “illegal.” Musk recently stated that if Starlink had received the funding, it could have “saved lives” during Hurricane Helene in North Carolina. Meanwhile, FCC Chair Jessica Rosenworcel has defended the decision, noting that Starlink’s performance data showed challenges in meeting basic internet speed standards.
The decision has been met with internal dissent within the FCC, with two Republican commissioners opposing the ruling, arguing that SpaceX was being unfairly held to 2025 performance targets. Rosenworcel, however, has emphasized the need for more competition in the satellite internet space, criticizing Starlink’s dominance, with nearly two-thirds of all active satellites under its control.
The FCC has confirmed it received the Oversight Committee’s letter and is preparing to respond as the committee has requested relevant documents by October 21 to proceed with the investigation.