Texas Governor Denies SpaceX Favoritism
The Texas Governor’s office is pushing back against allegations of favoritism and sweetheart deals.
WASHINGTON, July 6, 2026 – Texas Gov. Greg Abbott's (R) office is denying favoritism for SpaceX.
In a response to a report by public radio's KUT News, Abbott’s press secretary Andrew Mahaleris told the station, “Gov. Abbott supports getting high-speed internet to rural Texans as quickly and cost-effectively as possible. Low Earth orbit satellite service is essential for the most remote areas where traditional fiber is too expensive and slow to build.”
Maheleris added that the Broadband Development Office made the decision to adjust grants to align with other states, allow providers to access capital earlier and help connect rural communities faster.
The Texas Broadband Development Office that distributes $5 billion in state funding to expand rural broadband is facing allegations of offering sweetheart deals and showing favoritism towards companies seeking grant money.
At a June 24 hearing, Texas Broadband Development Office Director Bryant Clayton was questioned by the state’s Senate Business and Commerce Committee regarding the allocation of Broadband, Equity, Access and Deployment funds.
During the hearing, lawmakers criticized how the office has approached its duties and identified areas in Texas that need broadband access. This included lawmakers suggesting that the Texas Broadband Development Office has been giving special treatment to companies that offer broadband via low-Earth-orbit satellites.
Currently, Elon Musk’s Starlink is the only one offering residential broadband via LEO satellites at scale, receiving $109 million in BEAD grants to serve 64,000 Texas locations at $1,703 per location on average.
Committee chairman Sen. Charles Schwertner explained that favoritism and transparency are big concerns that have been brought to his office. He pointed out that the Broadband Development Office had increased the amount of money it gave to LEO companies while rebuffing companies that use more traditional technologies like fiber and cable.
Clayton did not explain why other non-LEO companies' requests were rejected. He did say that Abbott’s office urged the office to change and asked the office to look into how it distributes grants to low-Earth-orbit providers due to concerns that Texas was out of step with nearby states.
