TAMPA, Fla. — SpaceX would get just 1% of the $625 million in rural broadband subsidies proposed by West Virginia, the third state in a row to give satellites only a marginal role in the federal government’s Broadband Equity, Access, and Deployment (BEAD) program.

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Jason Rainbow writes about satellite telecom, finance and commercial markets for SpaceNews. He has spent more than a decade covering the global space industry as a business journalist. Previously, he was Group Editor-in-Chief for Finance Information Group,...