Tuesday, December 23, 2025 | 09:09 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

Starlink got $1 mn from USAID over 4 yrs, now Musk is shutting it down

US President Donald Trump has frozen billions in international aid, leaving USAID-funded projects, including Starlink deployments, in limbo

Elon Musk

Elon Musk at Donald Trump's rally | Photo: Bloomberg

Vasudha Mukherjee New Delhi

Listen to This Article

Elon Musk’s Starlink has received at least $1 million from USAID over the past four years, yet Musk is now leading the charge to shut down the agency, a report by Forbes revealed. The move, backed by US President Donald Trump, has frozen billions in international aid and raised questions about the future of USAID-funded Starlink contracts, which have helped provide internet access in war zones and developing countries.
 

USAID spent at least $1 million on Starlink

According to federal contract records, accessed by Forbes, USAID has spent up to $1 million on Starlink terminals, bringing the satellite internet service to Zimbabwe and South Africa, Musk’s birthplace. However, the agency’s most notable deal was its $3 million partnership with SpaceX to send 5,000 Starlink terminals to Ukraine shortly after the war with Russia began in 2022.
 
 
Musk himself has highlighted Starlink’s role in Ukraine’s defense, saying it was “the BACKBONE of Ukrainian military communications” at the front lines. However, USAID’s Office of Inspector General launched an inspection last year into how the terminals were used and whether USAID properly monitored their deployment.
 
Despite SpaceX benefiting from USAID’s funding, Musk has now aligned with Trump in calling for the agency’s closure. On Friday, Trump accused USAID of corruption and fraud, posting on Truth Social, “USAID IS DRIVING THE RADICAL LEFT CRAZY…THE CORRUPTION IS AT LEVELS RARELY SEEN BEFORE. CLOSE IT DOWN!”
 
Shortly after, Elon Musk announced that his newly-created Department of Government Efficiency (DOGE) had been given authority to shut down USAID. Over the weekend, DOGE staff attempted to enter USAID offices to access classified materials, while hundreds of USAID employees were either fired or furloughed.
 

What happens to Starlink’s USAID contracts?

Trump’s move has frozen billions in international aid, leaving USAID-funded projects -including Starlink deployments in limbo. It is unclear whether the agency’s contracts with SpaceX will continue, be reassessed, or be terminated altogether.
 
As USAID is dismantled, the future of US foreign aid, including its support for Starlink in conflict zones, remains highly uncertain.
 
Earlier today, Trump also threatened to cut aid to Jordan and Egypt, two countries that receive some of the highest foreign assistance from the US, if they do not agree to accept displaced Gazans. This move showed Trump willingness to leverage US funding to forward his administration’s political agenda, which in this case is to redevelop the Gaza Strip.
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 11 2025 | 5:43 PM IST

Explore News