Texas Broadband Office Pushes Back Against SpaceX Favoritism Accusations
The department says claims have been driven by misinformation.
July 23, 2026 – As the Texas Broadband Office faces accusations of SpaceX favoritism, the office is pushing back against these claims, saying it has been hit by misinformation.
“The allegations appear to be driven by certain companies' dissatisfaction with the outcome of an impartial process rather than by the facts. Claims of favoritism or unfair treatment are unsupported and fundamentally misrepresent the BDO’s work,” spokesperson Kevin Lyons said in a July 22 email.
This comes as Texas Lieutenant Gov. Dan Patrick and House Speaker Dustin Burrows, both Republicans, are requesting an audit of the Texas BDO’s administration of grant funding.
In a July 21 joint statement Patrick and Burrows explained, “The Office’s award process should be open to the public, accountable to the stakeholders, informed by the most accurate mapping and data available and focused on the responsible use of taxpayer dollars.”
Patrick and Burrows noted that audit findings would be discussed and necessary actions would be taken by the Texas legislature during the upcoming legislative session.
In the email, Lyons responded to the audit saying, “The Comptroller’s office welcomes the opportunity to work with the State Auditor’s Office, and that process began yesterday. We are confident an independent and thorough review will confirm that the BDO conducts a fair, open and transparent process.”
State lawmakers have raised concerns over SpaceX favoritism by officials. In June, 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 funding.
Throughout the hearing, lawmakers criticized how the office has fulfilled its duties, suggesting that the state’s BDO has been giving special treatment to broadband providers that offer service via low-Earth-orbit satellites, especially Starlink.
Nathan Johnson, a Democratic state senator running for attorney general, says if elected, he will investigate whether SpaceX, the parent company of Starlink, is getting preferential treatment in receiving broadband grants.
In a July 10 interview, Johnson falsely claimed that Texas officials directed 99% of grant funds towards SpaceX, saying the process “sure looks like” corruption. SpaceX has received less than one-tenth of the state’s $1.2 billion BEAD funds, covering about 27% of Texas’ BEAD locations.
Currently, Starlink is the only internet service provider offering residential broadband via LEO satellites in the Lone Star state. It received $109 million in BEAD grants to service 64,000 Texas locations at $1,703 per location on average.
