The effort raises questions about conflicts of interest for Musk’s business empire and the future of a $2 billion contract awarded in 2023 to Verizon Communications Inc. to upgrade the critical infrastructure, according to the people, who weren’t authorized to speak publicly.

Musk approved a shipment of 4,000 Starlink terminals to the FAA last week for the initiative, said one of the people. One terminal has already been installed at the FAA’s air-traffic control technology lab in Atlantic City, New Jersey, for testing, the person said.

The person familiar with the matter said the program will be called TDM X. The goal is to have the entire program fully functional within 12 to 18 months.

An FAA spokesperson confirmed Bloomberg’s report, saying the agency is testing one terminal in Atlantic City and two terminals at non-safety critical sites in Alaska. The FAA has been considering the use of Starlink to fix telecommunication connections and provide more reliable weather information at remote sites, including in Alaska, the spokesperson said by email.

Verizon’s contract supports the FAA in maintaining and upgrading its critical infrastructure, company spokesman Rich Young said by email. “Protecting Americans who rely on a safe and functioning air traffic control system is more important than ever,” Young added. “Our enhancements will help make that happen.”

A SpaceX representative didn’t immediately respond to a request for comment. 

“The Verizon system is not working and so is putting air travelers at serious risk,” Musk posted on his X social media platform. 

The people said it was unclear how the use of Starlink terminals might impact the existing Verizon contract.

Responding to Bloomberg’s report at a Tuesday morning investor conference, Verizon executive vice president Joe Russo said its network could co-exist with Starlink.

He said Verizon’s own network for the FAA isn’t operational yet but that it “will be shortly.” If the Starlink tests are aimed at services including weather applications, “I think that can be complementary to what we’re trying to build to really run the FAA infrastructure,” Russo said.

Extended Reach

The push by SpaceX would extend Musk’s reach into the FAA, the aviation safety watchdog that regulates SpaceX rocket launches. Musk is overseeing a broad effort to reshape the US government under President Donald Trump, and has significant contracts with federal agencies. The FAA’s air-traffic control system manages 45,000 flights carrying almost 3 million people in the US each day.

Read More: Musk’s DOGE to Help ‘Upgrade’ US Aviation System, Duffy Says

Improving the FAA’s aging airspace network has drawn fresh attention after a deadly midair collision in January between a regional jet and a military helicopter near Ronald Reagan Washington National Airport. After the crash, Trump called current air-traffic control technology “obsolete.”

Transportation Secretary Sean Duffy said earlier this month that Musk’s Department of Government Efficiency would work with aviation authorities to “rethink” the nation’s airspace. 

An FAA effort to modernize its air-traffic controller network has dragged on for years. The US Government Accountability Office warned in December that the agency needed to take urgent action to update its systems, noting that a 2023 risk assessment found 76% were either unsustainable or potentially unsustainable.

The FAA’s Starlink tests mark the latest inroads SpaceX is making with governments and businesses globally — an expansion that has been further accelerated by Musk’s greater political influence and reach. Bloomberg reported in December that SpaceX received a Pentagon contract to expand Ukraine’s access to a more secure, militarized version of its Starlink satellite network.