What’s Happening with BEAD and Starlink’s Role in Nationwide Fiber Internet?

If you’re wondering how the U.S. government’s BEAD program affects nationwide fiber internet and what it means for Starlink, you’re not alone. The Broadband Equity Access and Deployment (BEAD) initiative was created to deliver high-speed fiber internet to underserved and rural areas across the country. However, recent changes threaten to reroute billions of dollars from fiber-optic infrastructure to satellite internet providers like Elon Musk’s Starlink. This shift raises critical questions about internet speed, reliability, cost, and the future of broadband access for millions of Americans.

Understanding BEAD: The Future of U.S. Broadband

The BEAD program represents a historic investment—$42.5 billion dedicated to bridging the digital divide, especially for the 15% of U.S. households still stuck with poor internet options, mostly in rural areas. Its mission mirrors past national infrastructure projects like electrification and telephone networks by focusing on fiber-optic internet, which offers unmatched speed and reliability. By early 2025, many states had already selected providers and prepared to start fiber buildouts. Unfortunately, a recent “rigorous review” ordered by U.S. Commerce Secretary Howard Lutnick has paused this momentum, citing concerns over “burdensome regulations” and a need for a “tech-neutral” approach.

Why “Tech-Neutral” Could Mean More Starlink, Less Fiber

“Tech-neutral” sounds fair, but in practice, it may heavily favor satellite internet companies. Sources reveal Lutnick’s review could redirect nearly half of BEAD’s funds—around $20 billion—to satellite providers like Starlink. Unlike fiber, Starlink’s satellite internet often offers slower speeds (around 100 Mbps down), higher latency, and higher costs, which are significant trade-offs for rural users. States like West Virginia and Nevada had ambitious fiber-centric proposals, aiming to connect nearly every home with fiber-optic service. Now, those plans might be replaced by satellite connections that can’t match fiber’s performance or durability.

Starlink vs. Fiber: Performance and Cost Comparison

Fiber internet delivers blazing-fast speeds—sometimes up to 5 Gbps—far outpacing Starlink’s median speeds reported by Ookla users, which hover just above the minimum “reliable broadband” threshold set by BEAD. Upload speeds, critical for modern work and education, are also much higher on fiber. Moreover, fiber connections tend to be more affordable over time, with lower upfront costs and more stable monthly fees. In contrast, Starlink’s service can cost $80–$120 monthly plus costly equipment fees, making it a less economical choice for many rural households.

Delays and Political Controversy Threaten Broadband Expansion

BEAD’s rollout has been slowed significantly by political interference and administrative delays, particularly after the change in Commerce Department leadership. Many states requested to slow down the program early on, but recent decisions have sparked bipartisan frustration. Legislators and local officials across 28 states have urged the Commerce Department to keep major changes optional, warning that imposing them could stall deployment by years. Meanwhile, broadband providers in states like Nevada have already invested heavily and are ready to build, waiting only on bureaucratic approvals.

Why Fiber Should Remain the Priority for Rural Broadband

While satellite internet like Starlink has its place—especially in extremely remote areas where fiber installation is impractical—it cannot replace fiber’s superior speed, reliability, and long-term cost-effectiveness. Fiber infrastructure can last for decades and support the increasing data demands of households and businesses. Starlink requires costly satellite launches and cannot scale effectively to meet the needs of millions of new users, a limitation highlighted by broadband program architects.

Looking Ahead: Protecting the Vision for High-Speed Internet Access

Former BEAD program lead Evan Feinman warns that the current path risks leaving rural America with slower, more expensive internet while enriching satellite internet providers. The original bipartisan vision for BEAD was to ensure universal, affordable, and high-quality fiber broadband. Preserving this vision requires vigilance from policymakers, communities, and advocates to resist changes that prioritize short-term satellite fixes over sustainable fiber expansion. The coming months will be critical for determining how the U.S. addresses its broadband future and whether fiber or satellite takes center stage in connecting America.