SpaceX’s Starlink is poised to draw roughly $300 million from state plans under the federal Broadband Equity, Access, and Deployment program, funding service for about 200,000 hard-to-reach locations in the United States.
The expected awards reflect a policy shift that gives states more latitude to fund “technology neutral” solutions in extremely high-cost areas, where trenching fiber or extending cable systems can be financially prohibitive. According to filings compiled by state broadband offices and the National Telecommunications and Information Administration, dozens of states and territories have now submitted plans outlining where satellite fits alongside new fiber builds.
How BEAD Dollars Are Being Allocated
Across approved plans so far, Starlink’s average support comes in around $1,470 per location. By contrast, fiber proposals for remote terrain can easily top $10,000 per passing once you account for make-ready work, pole replacements, permitting, and miles of new plant. That gap explains why states are blending approaches—funding fiber where density and economics justify it, and using satellites to close stubborn holes on the map.
The NTIA says states are projecting at least $13 billion in taxpayer savings, driven by higher private matching, more competitive bidding, and the addition of innovative delivery options. Independent tallies from industry analysts, including Wes Robinson of Eastex Telephone Cooperative, indicate that eligible entities have obligated about 44% of currently budgeted dollars while returning or reprogramming billions for later use.
Why States Are Turning to Satellites
There’s a trade-off. Starlink commonly delivers 100–300 Mbps service with terrestrial-like latency in the tens of milliseconds, which covers typical home needs but doesn’t match the symmetrical multi-gigabit performance of fiber. However, satellites can be deployed rapidly, without new middle-mile construction, and at a fraction of the cost per address in sparsely populated regions. SpaceX has also signaled network upgrades designed to push toward gigabit-class throughput as new satellites and capacity come online.
Critics, including several digital equity groups and some fiber providers, argue that subsidizing satellite risks cementing lower-capacity infrastructure in communities that ultimately need fiber. State broadband offices counter that the mandate is universal coverage within finite budgets, and that satellites act as a cost-effective “bridge” where fiber is impractical today.
Where the Money Is Going
Early state plans highlight large Starlink allocations in places with rugged geography and long driveways between homes. Ohio has earmarked roughly $51.6 million for about 31,000 locations. Washington state plans around $43 million for more than 27,000 addresses, and Wisconsin targets approximately $34.4 million for nearly 23,000 hookups. These totals sit alongside significant fiber awards, reflecting each state’s mix of cost, density, and deployment risk.
In practice, satellites are being positioned as gap-fillers—covering low-density census blocks outside the economic reach of fiber builds selected through scoring criteria that prioritize cost per location, technical performance, and long-term operations.
The Competitive Landscape
Amazon’s Project Kuiper is also on track to receive substantial BEAD backing—at least $124 million to serve more than 200,000 locations across multiple states, based on program documents and state proposals. While Kuiper is still building out its constellation, demonstration results reported by the company include peak downloads up to 1 Gbps, putting additional pressure on incumbents and underscoring the program’s technology-open stance.
Major terrestrial players—among them AT&T, Comcast, Frontier, and regional cooperatives—remain in line for hundreds of millions of dollars to extend fiber. The resulting competition across fiber, fixed wireless, and satellite is expected to keep bids sharper and stretch public dollars further.
What It Means for Households
Under BEAD terms, satellite awardees must provide user terminals and installation at no cost for eligible locations and reserve sufficient network capacity to serve them. Monthly pricing, however, is not set by states under the revised guidance, leaving affordability to provider offerings and any complementary subsidies households may qualify for.
Providers are also subject to performance and reliability obligations, with milestones, reporting, and potential clawbacks enforced by state broadband offices and the NTIA. The expectation is that funded solutions meet low-latency targets and support common applications such as video conferencing, remote learning, and telehealth.
What to Watch Next
Remaining state plans are working through final approvals, and subgrant awards will lock in specific projects and timelines. Residents in covered areas can expect direct outreach once addresses are confirmed eligible, though installation windows will vary by provider and state processes.
For SpaceX, a roughly $300 million slate would cement Starlink as a mainstream tool in the rural broadband toolkit. For policymakers, the allocations signal a pragmatic turn: use fiber where it pencils out, and rely on satellites to eliminate the last pockets of digital isolation without breaking the budget.