Texas Broadband Office Suspends Billions in Federal Grant Disbursements Amid Favoritism Probe
The Texas Broadband Development Office halted all BEAD federal fund payouts after accusations of preferential treatment toward Starlink and a pending audit.
On Tuesday, the Texas Broadband Development Office announced an indefinite suspension of all disbursements from the federal Broadband Equity, Access and Deployment (BEAD) program, which totals billions of dollars. The pause follows accusations that the office gave preferential treatment to Elon Musk’s Starlink satellite service, prompting legislators to demand an audit. An internal review of the broadband office is also being conducted by Comptroller Don Huffines.
During a Senate hearing, Sen. Charles Schwertner highlighted that low-Earth-orbit satellite providers received altered grant terms at the direction of Governor Greg Abbott’s office just days before awards. Both Starlink and Amazon’s satellite venture were selected as subgrantees. State leaders including Lt. Gov. Dan Patrick and House Speaker Dustin Burrows have called for legislative action in the next session. The audit’s timeline remains unclear, leaving subgrantees awaiting further guidance.
Why it matters
The freeze puts billions of broadband improvement funds on hold, affecting Texas communities’ access to high-speed internet.
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