Broadband grants paused as critics allege favoritism toward Elon Musk’s Starlink

The Texas Broadband Development Office (BDO) has temporarily halted all disbursements of federal funds for the Broadband Equity, Access and Deployment program (BEAD), following accusations of favoritism towards Elon Musk's Starlink. The hold, effective since Monday, is in place "until further notice," though the reason for the pause remains undisclosed.

State officials confirmed that subgrantees are not required to take any further action at this time, but the BDO will provide additional guidance as it becomes available. The controversy stems from a Senate committee hearing in June, where lawmakers raised concerns over the distribution of over $3 billion in BEAD funds.

During the hearing, Sen. Charles Schwertner, a Republican from Georgetown, expressed worries about taxpayer money allocations, particularly the upfront disbursement for projects. While other providers were slated to receive 10% of the grant money initially, low-Earth orbit satellite providers like Starlink were granted a larger share. According to Bryant Clayton, the BDO's director, this change was a directive from the Governor's office and was implemented just days prior to the grant awards.

Schwertner subsequently called for increased transparency in the grant award process at the BDO. Despite the pause in disbursements, the BDO remains committed to providing further updates as the situation unfolds.