$110M in Texas Starlink grants 'sure looks like' corruption, Democratic AG nominee says

Johnson pledges investigation into $110M SpaceX broadband deal

AUSTIN, Texas — Democratic state Sen. Nathan Johnson, the party’s nominee for Texas attorney general, said Friday that $110 million in state broadband grants awarded to Elon Musk’s SpaceX for its Starlink satellite-internet program “sure looks like” corruption, and pledged to investigate the deal if elected in November.

Johnson made the comment in an interview with the Dallas Morning News, in which he called for greater legislative scrutiny of state grants funneled to SpaceX for its Starlink satellite program, which provides fast internet access for rural areas. The grants, administered through the Texas broadband development office, directed about $110 million to Starlink — the overwhelming share of available funds.

The concentration of awards has drawn criticism from Johnson and other lawmakers. “It is relevant that at the time period in question, a guy named Elon Musk who owns SpaceX, that owns Starlink, has tremendous control over the federal government,” Johnson said at a hearing in Austin on July 2, according to Houston Public Media.

The hearing revealed that the governor’s office had requested changes to the rules governing how broadband grants are awarded and paid out. Supporters of the new policy said it could allow grant money to go further. Critics called it a gift from the president to his sometimes political ally Musk.

Drew Garner, director of policy engagement at the Benton Institute for Broadband & Society, said the testimony reinforces his group’s findings that Musk’s companies have been lobbying to change rules nationwide around how broadband grants are awarded and paid out. “States would prefer to give them a small amount of money up front and then distribute the rest of the money sort of in increments based on the adoption of internet service,” Garner said. “This is not something Starlink likes.”

Johnson’s pledge puts an investigation into Musk’s Texas business dealings directly on the November ballot. His Republican opponent, state Sen. Mayes Middleton, has declared himself a Trump loyalist, and the Starlink grants have become a central issue in the campaign.

MSI previously reported that Johnson had pledged to investigate the grants if elected, and that the process had become a particular source of controversy after testimony revealed that Abbott’s office requested changes to the grant-awarding rules that critics said favored Starlink.

State Sen. Charles Schwertner and Texas broadband development office director Bryant Clayton have also been involved in the discussions around the grant program, according to testimony and records cited in the hearing.

Johnson said the lopsided nature of the awards — with 99% of available grant funds going to one company — had undermined public confidence in the bidding process. He called for a formal review of how the state selects broadband providers and whether the rules were changed specifically to benefit Starlink.