The Starlink Grant Fight in Texas: How a $110 Million Award Became a Political Test

Nathan Johnson, the Texas Democrat who won his party's attorney general primary runoff in May 2026, has pledged to investigate how SpaceX's Starlink division received $110 million in state broadband funds if he wins the general election The Guardian. Johnson, a state senator since 2019, told the Dallas Morning News the award "sure looks like" corruption was involved Ballotpedia.
The funds came from Texas's broadband development office (BDO), the state agency responsible for distributing money to expand rural internet access. Johnson flagged that Starlink received 99% of available grant funds in that funding round—what he called a disproportionate share. "Public confidence in the bidding process has been undermined," he said.
Republican Governor Greg Abbott's office signed off on the awards and is reported to have revised the BDO's grant rules beforehand. The revision shifted criteria to favor low-Earth-orbit satellite providers—the technical category that includes Starlink—over ground-based fiber competitors that typically handle rural broadband expansion. At a Texas Senate hearing in June 2026, the BDO director Bryant Clayton testified that Abbott's office had requested the rule changes, asking the agency to align with how peer states treat satellite broadband KUT.
Abbot's administration has defended the revision as a technical realignment with neighboring states' practices. The explanation has not quieted critics. Eight fiber-service companies sent a joint letter saying they were effectively shut out of the bidding once the rules favored satellites. State Senate committee chair Charles Schwertner, a Republican, acknowledged to colleagues that "favoritism and transparency are real big concerns that have been brought to my office" about how the grants were structured.
Elon Musk, SpaceX's founder, has made prior donations to Abbott's campaigns, according to donor records OpenSecrets. Johnson's campaign has cited that donation history as reason to scrutinize the grant process, though no evidence beyond the disclosed contributions and the rule changes has surfaced publicly. Starlink had already established a presence in Texas before the grant dispute: the company opened a satellite manufacturing facility there in 2023, per the governor's aerospace industry report Texas Governor's Office.
Johnson's call for investigation arrives as Texas reshuffles its statewide law enforcement leadership. Republican Attorney General Ken Paxton, who held the post through multiple controversies, was nominated by his party to run for US Senate in the November 2026 midterms, leaving the AG position vacant. That vacancy makes Johnson's candidacy—and his specific pledge—significant beyond a single contract dispute: whoever takes office in November will inherit the subpoena authority and agency machinery to examine exactly this kind of award.
Johnson has promised, since his primary campaign, to overhaul the AG's office and work with the state comptroller on broader audits of government contracts, not just broadband. The Starlink grant offers a concrete first test case: a quantifiable dollar amount and a documented record from the state senate hearing.
The political dynamic here merits attention for one reason: pushback against Abbott's rule change has come not only from Johnson but from Schwertner, a Republican, and from fiber companies that are not traditional Democratic allies. The complaint crossing party lines suggests the underlying grievance—that rule changes favored one company's technology category before bids were even reviewed—may have broader institutional support in Austin than a purely partisan argument would carry.
Whether Johnson's promised investigation actually happens depends entirely on the November election outcome. Texas attorney general races have historically favored Republicans for decades, and Paxton's exit removes an incumbent from the ballot but not the structural advantage Republicans hold in statewide contests. Still, the BDO's own admission that Abbott's office directed the rule changes gives Johnson a documented fact independent of whatever he might uncover in office. That distinction—what has been testified to versus what remains hypothetical—will likely shape how this story develops before the general election.


