Ontario Hides Secret Payout to Elon Musk’s SpaceX Over Failed Starlink Deal

Ontario taxpayers will not learn the price tag for a failed $100-million deal with Elon Musk’s SpaceX. The provincial government has confirmed that the payout for the cancelled Starlink contract is being kept secret following a confidential settlement between both parties.

The Canadian Press has learned that while the “kill fee” is reportedly much lower than the original contract value, the exact amount is being shielded from the public. Premier Doug Ford initially said he did not know the cost but promised to find out. However, his office later stated the figure cannot be released.

The deal was first announced shortly after the 2024 U.S. election to bring high-speed internet to 15,000 rural and northern households. At the time, government sources said the contract was partly intended to build a good relationship with the incoming Trump administration.

So what are these residents left with? They need to pay for Starlink or alternatives out of their own pockets. Remote First Nations communities were set to be the biggest beneficiaries of the deal.

The relationship soured as President Donald Trump began making economic threats against Canada. Premier Ford eventually cancelled the Starlink deal as part of a series of retaliatory measures against U.S. tariffs.

Opposition members are now criticizing the lack of transparency regarding the settlement. Liberal parliamentary Leader John Fraser said the public has a right to know how much money was given to SpaceX. “It blew up in his face and now we’re all paying the price. Just tell us how much we gave over to this billionaire,” said Fraser.

Instead, Fraser said the province should have partnered with a Canadian firm like Telesat to protect local jobs from the start. While headquartered in Canada, Telesat still has major U.S. investors. Telesat’s Lightspeed constellation is not yet operational.

The provincial government maintains it is currently looking for a new partner to fill the gap left by the cancelled contract. This remains part of a larger $4-billion plan to ensure every corner of Ontario has access to high-speed internet.