Lawmakers Call for Audit of State’s Broadband Grant
LUBBOCK — Lt. Gov. Dan Patrick and House Speaker Dustin Burrows called for an audit of the Texas Broadband Development Office Tuesday. Their request comes after the office faced allegations last month for favoring satellite companies when it came to distributing more than $5 billion in state and federal dollars.
In a joint statement, the lawmakers said concerns were raised during a Senate hearing last month about the award process. During the hearing, lawmakers suggested the state broadband office was giving special treatment to companies that offer services through low-earth orbit satellites.
“It is critical the Office’s performance and operations meet the expectations of the Texas Legislature and the people of this state,” the lawmakers said in a statement.
Gov. Greg Abbott’s office was also accused during the testimony of suggesting rule changes to favor satellites. The statement said that with the audit’s findings, the Legislature will be prepared to take appropriate action during the next legislative session.
Kevin Lyons, a spokesperson for the Texas Comptroller’s office, said he is confident the audit will show a fair and transparent grant process, and it will correct what he calls “significant misinformation” from the Senate hearing.
“The allegations appear to be driven by certain companies’ dissatisfaction with the outcome of an impartial process rather than by the facts,” Lyons said. “Claims of favoritism and unfair treatment are unsupported and fundamentally misrepresent the BDO’s work.”
Lyons said the audit process has already begun and they welcome the opportunity to work with the State Auditor’s office.
The allegations of favoritism are the latest road block on Texas’ ongoing mission to develop broadband infrastructure and services in all corners of the state. Despite the state being awarded in 2023 $3.3 billion — the most of any state — for broadband development funding, projects have yet to begin as a result of years of delay by elected officials.
The money was awarded as part of the Broadband Equity, Access and Deployment program, which was created during the Biden Administration with the goal of building infrastructure to support broadband services in even the most rural pockets of the country. In 2024, U.S. Sen. Ted Cruz wrote to the National Telecommunications and Information Administration, the agency responsible for administering the program, 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.
One of the initial requirements for the program was that all projects had to use fiber optic cables before any other option. That was changed in 2025 when 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, said there is a responsibility that comes with being stewards of public money. While his company did not receive BEAD funding, he said he wants the broadband office to be successful, but it has been a frustrating process.
“I think audit processes are responsible and should be welcomed,” Moore said.
Disclosure: Dan Patrick has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in The Texas Tribune's journalism. Find a complete list of them here.
Correction, July 21, 2026, 6:18 p.m. Central: A previous version of this article incorrectly stated Starlink is the only provider in the U.S. for residential broadband services through low earth orbit satellites.
This article first appeared on The Texas Tribune.
