Texas lawmakers call for audit of Broadband Development Office

Lt. [KXAN]

Texas's two highest-ranking legislative leaders are seeking an independent review of the Broadband Development Office after questions surfaced regarding its allocation of billions in infrastructure funding.

Lt. Gov. Dan Patrick and House Speaker Dustin Burrows submitted their audit request following allegations that the state agency showed preferential treatment toward companies operating satellite internet systems. The concerns emerged during a June meeting of the Senate Business and Commerce Committee, where lawmakers indicated the office may have unfairly advantaged satellite providers in the grant distribution process.

The controversy centers on funding decisions made under a $3.3 billion federal grant received by Texas in 2023 through the Broadband Equity, Access and Deployment program. When satellite companies like Starlink competed for contract awards in certain regions, other bidders with substantially lower cost proposals were passed over, according to committee testimony. Bryant Clayton, who directs the state's broadband office, defended those decisions by stating that competing applications contained material flaws that were not remedied appropriately.

Patrick and Burrows emphasized the need for enhanced oversight in a statement, arguing that grant awards must remain transparent and subject to public scrutiny. "The Office's grant award process should be open to the public, accountable to the stakeholders, informed by the most accurate mapping and data available, and focused on the responsible use of taxpayer dollars," they said. The two leaders stressed that expanding broadband connectivity serves critical community needs, including educational access and telemedicine capabilities.

The scrutiny reflects a significant shift in federal policy. Initially, the broadband program mandated fiber optic infrastructure as the primary technology for funded projects. In 2025, regulations changed to a technology-neutral framework, permitting satellite operators to compete for federal money. Grant Spence, general manager of Dell Telephone Cooperative, expressed concerns that while satellite technology offers immediate coverage to underserved areas, it may not deliver the long-term infrastructure benefits that ground-based systems provide.