A Democratic candidate for Texas attorney general said Friday he would investigate the way state grant money was awarded to SpaceX for its Starlink satellite internet service and pursue reforms to how the state vets contractors if he wins in November.
Claims of lopsided award draw scrutiny
Nathan Johnson, who secured the Democratic nomination in the runoff for attorney general in May, told the Dallas News that the distribution of roughly $110 million in state grants to SpaceX appeared one-sided and warranted a probe. The funds were part of a program meant to expand broadband access in rural areas.
“I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it,”
Johnson has urged the Legislature to increase scrutiny of grants and contracts after the Texas Broadband Development Office awarded about 99% of available funds to a low-Earth-orbit satellite provider. Records indicate lawmakers and the governor’s office had revised program rules prior to the award to favor such providers, a change Johnson questioned at a June legislative hearing.
Political backdrop and oversight push
The grant decision has become politically charged partly because of public donations from billionaire Elon Musk to state officials, records show, though there is no allegation directly tying those contributions to the awards. The controversy arrives as Johnson seeks to remake the attorney general’s office, currently held by Republican Ken Paxton, and to coordinate closely with the state comptroller on audits of government contracting.
At a state senate business and commerce committee hearing in June, officials from the broadband office acknowledged they altered the grant structure after direction from the governor’s office to better align with other states’ approaches. The comments underscored how policy decisions at the executive level shaped the procurement process.
What a probe could examine
If elected, the attorney general’s office could use civil investigative tools and coordination with other state agencies to review:
- How the grant criteria were changed and who directed the revisions.
- Whether the competitive process met statutory and regulatory requirements.
- Any potential conflicts of interest involving public officials and applicants.
The controversy has implications beyond the immediate award. Legal review of the procurement process could reshape how future broadband funds are disbursed and how state officials handle rule changes that affect bidders. That would matter for rural Texans awaiting expanded high-speed internet and for companies competing for public dollars.
| Item | Detail |
|---|---|
| Grant amount under dispute | $110 million |
| Percent awarded to SpaceX | ~99% |
| Office proposing audit | Attorney General (candidate pledge) |
The debate adds to ongoing scrutiny of how state grant programs are structured and raises questions about transparency that could animate voters and lawmakers as the state prepares for the midterm elections.
— Alejandro Vega, Texas Correspondent
