USAID Spent $1 Million on Elon Musk’s Starlink Terminals Over the Last Year
SpaceX’s Starlink has played a significant role in supporting Ukraine’s defense during the ongoing war with Russia, but recent developments have cast doubt on the future of this partnership. Elon Musk, who has been vocal in his criticism of the U.S. government agency USAID, also has financial ties with the agency, raising questions about the sustainability of Starlink’s role in Ukraine's military communications.
In the past year, USAID, the U.S. government’s humanitarian and development agency, has spent up to $1 million on Starlink terminals, based on federal contract records. These terminals were deployed in countries such as Zimbabwe and South Africa—Musk’s birthplace. However, the most significant collaboration between USAID and SpaceX involved providing 5,000 Starlink terminals, valued at approximately $3 million, to Ukraine shortly after Russia invaded in 2022. This partnership was part of the U.S. government’s broader efforts to assist Ukraine during the war.
Musk has repeatedly touted the importance of Starlink in Ukraine's defense. In a tweet from November 2022, he claimed that “Starlink is the BACKBONE of Ukrainian military communications,” arguing that it helped prevent Ukraine from being overrun by Russia. According to Musk, Starlink played a crucial role in maintaining communications at the front lines, especially since much of Ukraine’s other infrastructure had been destroyed or jammed by Russian forces.
However, Musk's relationship with USAID has become increasingly complicated. On his platform X, he has referred to USAID as a “criminal” agency, raising concerns about his stance on the U.S. government’s aid operations. Despite these public criticisms, Musk’s company has maintained business dealings with the agency.
In recent days, reports have surfaced about a potential shift in USAID’s future. Musk’s new venture, the Department of Government Efficiency (DOGE), has been granted permission to shut down USAID, with reports suggesting DOGE staff attempted to access USAID offices to obtain materials, including classified information. Furthermore, hundreds of USAID employees have been either laid off or put on furlough, and the agency’s website is currently down. The situation has raised significant questions about how this restructuring will affect ongoing contracts with companies like SpaceX.
USAID’s major role in providing free Starlink terminals to Ukraine could be disrupted as these changes unfold. While SpaceX has not commented on the matter, the uncertainty surrounding USAID’s future could have far-reaching implications for the Starlink partnership in Ukraine.
Musk’s past comments on the costs of providing free Starlink services to Ukraine have also raised eyebrows. In 2022, SpaceX threatened to limit Starlink access for Ukraine due to the expense of sustaining the service, though the company reversed this decision later that year. Additionally, concerns had been raised in the U.S. Congress regarding the possibility of Russia obtaining Starlink terminals illegally. Musk denied that any Starlink equipment had been sold to Russia, which would have violated U.S. sanctions.
As USAID undergoes significant changes, including the freezing of billions in international aid by former President Donald Trump, the fate of its contracts, including those with SpaceX, remains uncertain. With Marco Rubio appointed as the interim head of USAID, it is still unclear how the agency’s operations will be integrated into other government functions or how these shifts might affect future aid to Ukraine and other countries relying on Starlink terminals.
The developments surrounding USAID, SpaceX, and Starlink highlight the complex intersection of government aid, military support, and private enterprise, leaving key questions about the future of international collaboration in conflict zones like Ukraine.
