Nathan Johnson, a Texas state senator and Democrat, is running to become the state's attorney general. If he wins, he says he will investigate how SpaceX's Starlink satellite service received $110 million in state broadband funds The Guardian. Johnson told the Dallas Morning News the deal "sure looks like" it involved corruption Ballotpedia.

Texas has an agency called the broadband development office (BDO). Its job is to distribute money that helps bring internet to rural areas. Starlink received 99% of the available grant money in one round of funding—an unusually large share. Johnson says this raised a red flag about whether the process was fair.

Before the money was handed out, Texas Governor Greg Abbott's office changed the rules that decided how the grants would be awarded. The new rules favored satellite internet providers like Starlink over companies that use ground cables and fiber lines, which have historically been the main way to expand rural broadband. At a state senate hearing in June 2026, the agency's director said Abbott's office had asked for these rule changes KUT.

Abbott's office said the rules were updated to match how nearby states handle satellite broadband. That explanation did not convince critics. Eight companies that offer ground-based internet service sent a letter saying they could no longer compete. A Republican state senator named Charles Schwertner said his office had received complaints about "favoritism and transparency" in how the grants were decided.

Elon Musk, who runs SpaceX, has donated money to Abbott's campaign in the past, according to public donation records OpenSecrets. Johnson's campaign has mentioned this fact to suggest the grant process deserves a closer look. Starlink was already doing business in Texas before the grant dispute—the company opened a manufacturing plant there in 2023 Texas Governor's Office.

Johnson's promise to investigate this grant is especially important right now. Ken Paxton, the Republican who has been attorney general, is running for US Senate instead. That means a new attorney general will be elected in November 2026. Whoever wins will have the power to launch official investigations into how state agencies award contracts.

Johnson has also promised to conduct broader audits of government contracts in Texas, not just this broadband grant. The Starlink award gives him a specific example to point to: $110 million with a clear paper trail.

One notable thing about this dispute is that criticism has come from both Democrats and Republicans. Schwertner, a Republican state senator, raised concerns alongside Johnson, and fiber companies complained too. When complaints cross party lines like this, it often signals that people across the political spectrum see a real problem.

What happens next depends on the November election. Texas has favored Republican candidates for statewide offices for many years, so Johnson faces an uphill race. But Abbott's own agency has already admitted that his office changed the rules. That fact is documented in official testimony, independent of whatever Johnson might discover if he becomes attorney general.