WASHINGTON, July 10, 2026 \u2013 Texas\u2019 Democratic candidate for attorney general says, if elected, he would investigate whether SpaceX got preferential treatment in receiving $109 million in state broadband grants.<\/p>\n
The remarks by Nathan Johnson, a state senator, come after the state revised its broadband grant process following the Trump administration\u2019s restructuring of a $42.45 billion federal broadband expansion initiative.\u00a0<\/p>\n
The revised federal guidance, released June 2025, encouraged states to consider lower-cost technologies, including low Earth orbit satellite service, alongside fiber in the Broadband Equity, Access and Deployment program.<\/p>\n
Johnson alleged that Texas officials directed 99% of available grant funds toward SpaceX, in an interview<\/a> Friday with the Dallas News, arguing the procurement process \u201csure looks like\u201d corruption.<\/p>\n SpaceX\u2019s award, however, did not represent 99% of Texas\u2019 BEAD funding. Starlink\u2019s award covers about 27% of the total BEAD locations in Texas and represents less than one-tenth of the state\u2019s approximately $1.2 billion BEAD allocation. It was one of 22 preliminary award decisions issued under Texas\u2019 revised plan approved in December.<\/p>\n \u201cI am not declaring that corruption was at work in this instance. I am saying that it sure looks like it,\u201d Johnson told the Dallas News. \u201cPublic confidence in the bidding process has been undermined.\u201d<\/p>\n SpaceX does have a record of challenging broadband award decisions in other states.\u00a0<\/p>\n The company challenged proposals in<\/a> Colorado, Louisiana, Virginia, and Wisconsin, arguing the states\u2019 initial awards did not adequately consider lower-cost satellite service. Pennsylvania was forced to revise its draft results to award slightly more locations to SpaceX.<\/p>\n The company also aggressively bid and undercut competitors<\/a> across states, arguing that it should be winning more locations after the Trump administration instituted new rules that emphasized low deployment costs.<\/p>\n Eight companies offering fiber broadband in Texas raised concerns in a letter<\/a> that the revised grant process appeared to exclude them from competing for some awards.<\/p>\n