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The Federal Aviation Administration (FAA) reached an agreement to modernize its outdated IT network using SpaceX's Starlink satellite system, a move that has raised concerns about potential conflicts of interest for CEO Elon Musk. Although the exact value of the contract has not been disclosed yet, SpaceX, which owns Starlink, relies primarily on federal funds, mainly through NASA contracts. The FAA confirmed the agreement in a social media post Monday night, noting that it has begun testing the terminals of three Starlink locations: one in Atlantic City, New Jersey and two in Alaska. According to Bloomberg, the entire launch is expected to include 4,000 terminals over the next 12 to 18 months. Transportation Secretary Sean Duffy said he had talked with Musk about rapid improvements in air traffic infrastructure in Washington, DC and SpaceX after a fatal crash involving military helicopters and nearby regional jets. The contract is under scrutiny, as Musk is not only a businessman, but also holds government positions. As head of the Trump administration's efficiency division, he has been pushing for in-depth cuts in federal spending, including publicly criticizing FAA's existing IT provider Verizon at FAA.Musk. He claimed in a post on X (formerly Twitter): “The Verizon system does not work, so putting air travelers at serious risk.” The FAA has signed a contract with Verizon to upgrade its network. Musk's government involvement exceeds the FAA. His companies – Spacex, Tesla, etc. are supervised by institutions such as the Securities and Exchange Commission (SEC), the National Highway Traffic Safety Administration (NHTSA), and the Consumer Financial Protection Agency. Over the years, he has had several compelling clashes with regulators, even as his business benefits from federal incentives such as early financial support for Tesla and tax credits for electric vehicle buyers. . SpaceX will launch a survey this week for Astroforge, a company looking to mine minerals from asteroids. Does it sound familiar? The debate over Musk’s dual role as an advisor to the government is unlikely to disappear as the FAA moves forward with Starlink. Send the latest post to your email.
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