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AUSTIN, Texas – Lt. Gov. Dan Patrick and House Speaker Dustin Burrows are calling for an audit of the Texas Broadband Development Office after concerns over how the agency distributes grant money were raised last month.
During a June meeting of the Senate Business and Commerce Committee, lawmakers suggested that the state broadband office of giving special treatment to companies that offer their services through low-orbit satellites.
What they’re saying:
“The State of Texas recognizes the importance of expanding broadband access, so more Texans can benefit from reliable, high-speed internet. Greater connectivity allows those in communities across the state to pursue more educational and employment opportunities and access essential services such as telehealth and telemedicine,” Patrick and Burrows said in their statement. “The Texas Broadband Development Office plays a key role in extending these benefits, and therefore its mission must be carried out transparently and responsibly, with a full accounting of the state and federal funds dedicated to this effort. The Office’s grant 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.”
Concerns of favoritism were raised during the committee hearing over contracts awarded by the state to Elon Musk’s Starlink, with senators suggesting that other applicants for some areas had bid amounts that were much lower in comparison.
Bryant Clayton, director of the Broadband Development Office, said the other applicant had serious deficiencies and did not correct them properly.
Texas was awarded $3.3 billion in 2023 in broadband development funding through the Broadband Equity, Access and Deployment program. Initially, the program required all projects to use fiber optic cables before any other option. In 2025, however, those regulations were changed to a technology-neutral stance that allowed satellite companies like Starlink to receive federal funding for broadband projects.
The other side:
Dell Telephone Cooperative General Manager Grant Spence said that while satellite services were bringing broadband to parts of the state where it had not been available before, that innovation did not factor into the long-term benefits of more physical infrastructure.
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“My concern is that public policy should recognize the unique role played by locally-based providers, and ensure that rural broadband programs support not only broadband availability, but also the long term sustainability for the organizations that build and maintain communications and structure in rural America,” Spence said.
Rusty Moore, who represents the Texas Telephone Association, raised concerns that the BDO used outdated maps during the grant programs.
Moore said the maps included some areas that had already received funding, were already served through private investment, ineligible or where existing infrastructure was not properly recognized.
“These issues were raised with BDO but were met with resistance, and taxpayer resources were unnecessarily spent to over build funded and served locations,” Moore said. “Improved transparency would increase public trust BDO’s processes.”
What’s next:
Patrick and Burrows called on the State Auditor’s Office to conduct a performance review of the BDO’s grant program and award process.
“It is critical the Office’s performance and operations meet the expectations of the Texas Legislature and the people of this state,” they said. “Upon receiving the audit’s findings, the Legislature will be prepared to take appropriate action during the 90th Legislative Session.”
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