SpaceX Calls FCC High Cost Broadband Subsidies ‘Corporate Welfare’

WASHINGTON, Nov. 5, 2026 — SpaceX is urging the Federal Communications Commission to eliminate its High Cost universal service program, arguing that billions of dollars in annual subsidies are funding broadband networks that private companies would build anyway.

In an Oct. 29 filing, the satellite internet provider called the program a system of “corporate welfare programs, not broadband programs,” arguing that its funding does little to improve broadband availability or subscriptions. SpaceX said the FCC should retire the program and redirect the money toward consumers or other broadband initiatives.

The filing followed meetings between SpaceX Principal of Satellite Policy Joseph Bissonnette and FCC officials on Oct. 27 and 28. Bissonnette also met with staff for Democratic Commissioner Anna Gomez on Oct. 30 to discuss the proposal.

SpaceX cited an October analysis from the Technology Policy Institute, which found that the Rural Digital Opportunity Fund accelerated broadband deployment by less than a year, on average, for two-thirds of the locations that received funding. The study also found that subsidies discouraged deployment by providers that were not receiving federal support.

SpaceX argued that more than $3 billion annually is distributed through legacy High Cost funding mechanisms, including High Cost Loop Support, the Connect America Fund Broadband Loop Support and other programs. SpaceX said many of these mechanisms lack measurable deployment requirements or defined expiration dates, effectively providing ongoing payments to incumbent telecommunications carriers.

SpaceX also argued that the funding is increasingly unnecessary as cable, fixed wireless, and satellite providers expand broadband service in rural communities. It said legacy subsidy areas account for just 5 percent of U.S. broadband serviceable locations and that consumers in those areas do not have significantly higher broadband subscription rates than consumers in comparable areas without subsidies.

The company further argued that the Trump administration's position that the Broadband Equity, Access, and Deployment program would be the final federal broadband deployment subsidy program conflicts with continuing the FCC's legacy funding mechanisms.

SpaceX said the billions spent annually on High Cost subsidies could be better directed toward affordability, pointing to the Lifeline program as an underfunded initiative that provides assistance to low-income consumers.

The filing comes as the future of the Universal Service Fund faces additional legal uncertainty. The Fifth Circuit recently ruled against the FCC's delegation of authority to the Universal Service Administrative Company, raising questions about the administration of the fund.

SpaceX argued that the legal uncertainty provides an opportunity for the FCC to reconsider its universal service programs and wind down High Cost subsidies.