Texas Halts BEAD Disbursements as New Comptroller Recasts Broadband Office
A broadband mess in Texas
August 13, 2026 – Texas has temporarily halted disbursements of billions of dollars in federal broadband funding as the state’s broadband office undergoes a forced leadership change.
Two senior broadband officials were reportedly dismissed days before the state told subgrantees payments would remain on hold.
The Texas Tribune
The Texas Broadband Development Office notified subgrantees under the Broadband, Equity, Access, and Deployment program that the hold took effect Monday and would remain in place “until further notice.”
“No further action is required from subgrantees at this time,” the office said in the email obtained by The Texas Tribune. “The BDO will provide additional guidance and updates as they become available.”
The move comes days after newly appointed Comptroller Don Huffines reportedly dismissed the Texas broadband office’s Director Bryant Clayton and Division Director Greg Conte. Clayton’s LinkedIn has since gone inactive, while Conte’s confirms he no longer works at BDO.
Huffines, who was sworn in Aug. 1, took control of the comptroller’s office as lawmakers were pressing for an audit of the broadband office’s planned awards under the BEAD program.
Texas Lt. Gov. Dan Patrick and House Speaker Dustin Burrows had called for a formal audit of the broadband office in July, following allegations that the state changed its BEAD funding rules in ways that benefited low Earth orbit satellite providers, particularly Elon Musk’s Starlink.
Huffines announced a comprehensive internal review of the comptroller’s office last Tuesday, including the broadband office.
“As chief financial officer of the state, it is my obligation to ensure that taxpayers have a strong advocate and an alert watchdog looking out for their interests,” he said.
A quick recap
In Texas, SpaceX’s Starlink won the largest number of locations under the BEAD program, securing $108.8 million to connect 63,963 homes and businesses, about a quarter of eligible locations in the state.
Amazon Leo was also selected to serve roughly 2,000 locations in the state, although the provider ultimately declined the award.
After the Trump administration revised BEAD rules to allow a broader range of technologies, Texas reworked its plan to serve about 51 percent of locations with fiber, 27 percent with satellite and 22 percent with wireless technologies.
In June, the state said it signed award agreements with 17 ISPs to serve about 208,000 locations, nearly 87 percent of the roughly 240,000 locations eligible for BEAD funding in Texas.
Texas was initially allocated $3.3 billion through the federal BEAD program, the largest state allocation under the $42.5 billion program created by the 2021 infrastructure law. The state ultimately received federal approval for a revised BEAD plan providing about $1.3 billion in federal funding.
In 2025, then-Comptroller Glenn Hegar floated the idea of the state returning nearly $1 billion to the U.S. Treasury, saying broadband investments and private sector expansion had reduced the need for federal funding.
State senate hearing raises questions over BEAD grant treatment
The audit follows concerns raised during a June 24 Senate Business and Commerce Committee hearing, where lawmakers questioned how the broadband office was awarding BEAD grants.
Among the issues raised was the broadband office’s decision to change its grant disbursement structure for low Earth orbit satellite providers, allowing them to receive more money upfront than providers using traditional technologies.
Under questioning, Clayton said the change came after Gov. Greg Abbott’s office asked the broadband office to compare its proposed payment structure with those used in other states. The testimony fueled lawmakers’ questions on whether the change gave satellite providers preferential treatment.
Abbott’s office has defended the grant decisions, arguing they align with the state’s goal of expanding broadband access to rural Texans as quickly and cost-effectively as possible.
Records show Musk has previously made monetary donations to Abbott, among other Texas officials, including former acting Texas Comptroller Kelly Hancock, who served from July 1, 2025, through July 31, 2026.
Update: This story has been updated with additional information about Musk's donations to Texas officials.
