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Rurally here, HughesNet has existed for years. I have never used its service, but why would anyone have been compelled to switch to Starlink?
In theory, StarLink would have been faster because they use many low-orbit satellites as opposed to a handful of further-away geostationary satellites like HughesNet. But "faster speeds" isn't everything and this money is meant to expand actual broadband/optical internet.
If they were able to meet the actual up/down metrics for the subsidy, I don't see why they shouldn't get it. But they weren't able to do that, so they don't get the subsidy.
Affordability is also a thing
The subsidy had a goal of 2025, they said you won't make it there in 2022. The money was going to be used to help make it there by 2025.