Elon Musk secures himself $2 BILLION FAA contract in 'glaring conflict of interest'

Elon Musk is facing new conflict of interest allegations after the Federal Aviation Administration (FAA) agreed to transfer a $2 billion contract to SpaceX.

The FAA will use SpaceX's Starlink satellite network to upgrade the technology air traffic controllers use to manage US airspace, which has long been provided by Verizon.

Musk recently suggested system is aging and requires an immediate overhaul, saying on X that Verizon's technology 'is not working and so is putting air travelers at serious risk.'

Starlink equipment has already been installed in FAA facilities as a prelude to the contract takeover, according to government employees, contractors and people familiar with the work.

Musk's SpaceX is a privately-held space technology company that relies heavily on federal funding. Its CEO, Gwynne Shotwell, has said the company has about $22 billion in government contracts, $15 billion of which was awarded by NASA.

But this new FAA deal comes as Musk is leading efforts to gut federal government spending, including through staffing cuts at the FAA. At least 400 personnel have been let go since February 14, according to the agency's union.

Musk's critics are raising concerns about conflicts of interest due to his oversight of government agencies that are responsible for regulating SpaceX and his other businesses.

'The most glaring conflict of interest of all is that Elon Musk is a government contractor himself who collects billions of dollars from the US government,' Rep. Jamie Raskin (D-MD) said in a recent interview.

'It's a joke. This guy is taking us for a ride,' he added.

In a statement, the FAA told DailyMail.com it has been considering the use of Starlink since the prior administration to increase reliability at remote sites, including in Alaska.

'Alaska has long had issues with reliable weather information for the aviation community,' the agency said. 'The 2024 FAA Reauthorization required the FAA to fix telecommunications connections to address those needs.'

The FAA added that it is testing one terminal at its facility in Atlantic City, New Jersey and two terminals at non-safety critical sites in Alaska this week.

DailyMail.com has reached out to SpaceX and Verizon for comment.

Despite the criticism directed toward Musk, Ryan Tseko, a former flight captain for United Express and Grand Cardone and designated pilot examiner for the FAA, told DailyMail.com that the Starlink deal is 'needed.'

'I think Elon has proven time and time again, even with his cars and his rocket ships, that he's able to handle advancements we need,' Tseko said.

'We need out of the box thinkers. When I hear of Verizon versus Starlink, I think of old versus new.'

He thinks the FAA's Starlink partnership will be a 'huge benefit' for both air traffic controllers and pilots who rely on satellite networks to communicate with each other and gather real-time information about flight paths and weather conditions.

It is not clear what role Musk might have played in helping SpaceX's Starlink secure this new contract.

'There's very limited transparency,' Jessica Tillipman, a contracting law expert at George Washington University, told the Associated Press (AP).

'Without that transparency, we have no idea how much non-public information [Musk] has access to or what role he's playing in what contracts are being awarded,' she added.

Musk has faced numerous conflict of interest allegations since taking up his position as a senior White House advisor.

His six companies (SpaceX, Tesla, Neuralink, X, xAI and the Boring Company) have already profited from $20 billion in US government contracts and subsidies, according to the Financial Times.

Musk has insisted these contracts were awarded based on merit.

But his influence over the new Department of Government Efficiency (DOGE) which has been spearheading deep spending cuts to agencies that directly oversee Musk's businesses, puts him in a position to manipulate government spending for his own gain, his critics argue.

'Elon Musk is a walking conflict of interest,' Craig Holman, the government affairs lobbyist at the consumer watchdog Public Citizen, told Mother Jones.

'Over and over again, he's just involved in governmental actions that directly and substantially impact his own financial wellbeing.'

For example, his acolytes have taken over many of the operations at the General Services Administration (GSA), which controls real estate and contracting for numerous government agencies.

GSA currently offers other agencies the ability to launch payloads — or cargo dedicated to producing data on space missions — through an existing SpaceX contract.

This puts the agency in a position to direct business toward Musk.

Other federal agencies involved in regulating or funding Musk's businesses include, NASA, the Department of Defense, the Department of Transportation and the Food and Drug Administration.

All of these agencies have been subject to spending and/or staffing cuts by DOGE.

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What's more, former FAA officials told the AP they were alarmed at the prospect of Starlink being used as a critical part of the nation's aviation system without adequate testing, review and debate about its benefits and drawbacks.

With this new deal, Starlink satellites will replace an aging ground-based communication system that facilitates the FAA's text and voice communication, the sources said.

Verizon was originally tasked with upgrading the system in 2023, when the FAA awarded the telecommunications company a $2 billion contract to update part of it to a modern standard that relies on fiber optic cables.

Records show that Verizon has already spent nearly $200 million and 15 years on modernizing the FAA's communications system.

On Tuesday, an Verizon representative told the AP that the company is unaware that the contract is being amended or terminated.