The Texas Broadband Development Office is under scrutiny as lawmakers demand an audit of its funding distribution process. The call for an audit comes after allegations that the office favored satellite companies when allocating over $5 billion in state and federal funds. This controversy is the latest hurdle in Texas’ ongoing efforts to expand broadband infrastructure across the state.
The request for an audit was made by Lt. Gov. Dan Patrick and House Speaker Dustin Burrows following concerns raised during a Senate hearing last month. Lawmakers suggested that the state broadband office was giving preferential treatment to companies offering services through low-earth orbit satellites.
Allegations of favoritism and rule changes
In a joint statement, the lawmakers emphasized the importance of the office’s performance meeting the expectations of the Texas Legislature and the people of the state. They also mentioned that Gov. Greg Abbott‘s office was accused during the testimony of suggesting rule changes to favor satellites. The audit’s findings will prepare the Legislature to take appropriate action during the next legislative session.
Kevin Lyons, a spokesperson for the Texas Comptroller’s office, expressed confidence that the audit will show a fair and transparent grant process. He stated that the allegations appear to be driven by certain companies’ dissatisfaction with the outcome of an impartial process rather than by the facts. Lyons welcomed the opportunity to work with the State Auditor’s office and assured that the audit process has already begun.
The roadblocks in Texas’ broadband expansion
Despite being awarded $3.3 billion in 2026—the most of any state—for broadband development funding, projects have yet to begin due to years of delay by elected officials. The money was awarded as part of the Broadband Equity, Access and Deployment (BEAD) program, created during the Biden Administration to build infrastructure supporting broadband services in rural areas.
In 2026, U.S. Sen. Ted Cruz wrote to the National Telecommunications and Information Administration, urging them to pause all actions related to the program in anticipation of changes with the incoming Trump administration. A few months later, then-Texas comptroller Glenn Hegar wrote to Cruz saying they could return as much as $1 billion in BEAD funding, citing state-led initiatives and private sector expansion.
The shift in technology requirements
Initially, the BEAD program required all projects to use fiber optic cables before considering other options. However, in 2026, the NTIA adopted a technology-neutral stance, opening the door to satellite companies—namely Elon Musk’s Starlink—receiving federal money for broadband development projects.
Rusty Moore, COO of Big Bend Telephone Company and a proponent for broadband development, emphasized the responsibility that comes with being stewards of public money. While his company did not receive BEAD funding, he expressed his desire for the broadband office to be successful but admitted that the process has been frustrating.
Moore stated, “I think audit processes are responsible and should be welcomed.” This sentiment echoes the calls for transparency and accountability in the distribution of broadband funding in Texas.
