Texas pauses BEAD grant disbursements after Starlink favoritism allegations

State broadband office gave no reason for the pause

The Texas Broadband Development Office on Tuesday temporarily halted all disbursements of billions of dollars in federal funds tied to the Broadband Equity, Access and Deployment program, or BEAD, according to an Associated Press report based on an email the office sent to subgrantees and that The Texas Tribune obtained.

The pause took effect Monday and would stay in place “until further notice,” the office’s email said.

In the email, the office said: “No further action is required from subgrantees at this time.”

“The BDO will provide additional guidance and updates as they become available,” the email said.

The state broadband office did not explain why the disbursements were paused, according to the email text reviewed by The Texas Tribune.

The office did not respond to The Texas Tribune’s inquiries before the AP report published Tuesday.

The hold followed accusations that the office had favored certain companies — specifically Elon Musk’s Starlink — in its handling of federal broadband dollars, AP reported.

The favoritism accusations prompted Texas lawmakers to announce an audit of the broadband office.

The AP report was written by Jayme Lozano Carver of The Texas Tribune.