Ontario officially cancels $100 million Starlink contract over Elon Musk's ties to Trump

Ontario has officially backed out of its $100 million contract with Elon Musk’s Starlink, ending a satellite internet plan that was supposed to serve thousands of homes in northern parts of the province.

The Doug Ford government confirmed it was ending the agreement and had to pay a cancellation fee, though the amount remains unknown.

“Our government has cancelled the Starlink contract,” a provincial spokesperson said in an email to Global News. “We are seeking an alternate solution as we continue our efforts to secure long term, stable high-speed internet access across the province.”

The deal with SpaceX, signed in November, was originally meant to bring satellite internet to about 15,000 homes in remote regions. But the arrangement, valued at $100 million, became politically complicated after Donald Trump’s return to the presidency and increasing tension over trade between the US and Canada.

Premier Ford had linked the cancellation to Trump's tariff actions against Canadian goods, telling reporters in March that the contract with Musk’s company was off. 

"It’s done,” Ford said. “We’re not going back there, it’s done.” Musk responded simply on social media: “Oh well.”

A senior government source told Global the province negotiated a settlement with SpaceX rather than terminating the agreement outright through legislation.

While the cancellation did cost Ontario money, the source noted that the fee was “not zero,” but still well below the full contract amount.

Internally, the government considered introducing a bill—tentatively called the Starlink Cancellation Act—to formally withdraw from the contract. That idea was eventually dropped, partly to avoid possible retaliation from SpaceX that could have disrupted other services like internet connectivity for northern healthcare providers.

The contract being scrapped means the 15,000 homes originally slated to receive internet access through Starlink are now without a clear path forward. The government has yet to identify a replacement service provider or timeline for a new deal.

Ontario NDP Leader Marit Stiles criticized the move and the broader lack of planning for rural communities.

“This should have been done a long time ago and the premier should have secured a proper deal for those in Northern and rural communities who still don’t have the reliable internet that they were promised by this government,” she said.

“Handing over hard-earned tax dollars to Elon Musk’s company was never the right approach. Months have passed and we still don’t have a plan or even a process that’s calling for home-grown solutions.”