They are not receiving money in 2022 because they are not meeting their commitments in 2022. They are still free to re-apply, and if they start meeting the level of service they bid for by 2028, they will get the money.
This is all very much above board.
The contract was for service that was supposed to start in 2028.
This comment isn't adding anything to the discussion. SpaceX has stated they meet a certain standard of service. They have not according to speed test results. They were never going to be able to meet it given the amount of customers they intend to have, but the original rdof was won entirely due to promises and not having data. Now that they have data, it's clear that what everyone already knew happened -- they cannot provide the service they advertise and be profitable.