The Texas Broadband Development Office implemented a temporary hold on all payments from the federal Broadband Equity, Access and Deployment program on Monday, according to an email sent to subgrantees. The office stated the suspension would remain in effect “until further notice” but did not provide a public explanation for the action.
The pause follows mounting scrutiny over how the state distributed more than $3 billion in BEAD funding. During a Senate committee hearing in June, lawmakers raised questions about the allocation process, particularly regarding rules modifications for low-Earth orbit satellite providers. While other broadband providers were initially expected to receive only 10 percent of grant money upfront with remaining funds dispersed incrementally, satellite providers received different terms. According to the broadband office’s director, this change came as a directive from the governor’s office and was implemented shortly before grant awards were finalized. Starlink, the dominant LEO satellite broadband provider in Texas, and Amazon, which recently began deploying its own satellite service, were both selected as subgrantees.
State lawmakers called for a comprehensive audit of the broadband office’s award process. The state comptroller announced an internal review of his office, which includes the broadband division. A state senator questioned the transparency of the grant distribution and expressed concerns about fairness in how taxpayer money was allocated. One Democratic candidate for state attorney general suggested the process may have involved coordination among multiple federal and state entities, while former acting comptroller officials disputed some of the criticism, instead pointing to separate concerns about corporate lobbying efforts.
Lieutenant Governor Dan Patrick and House Speaker Dustin Burrows jointly announced the audit would proceed, with the legislature pledging to take action during the next legislative session beginning in January. No completion date for the audit has been established.
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