--- title: "Texas Freezes Billions in Broadband Grants as Lawmakers Probe Alleged Starlink Favoritism" type: "News" locale: "en" url: "https://longbridge.com/en/news/295765962.md" description: "Texas has temporarily frozen billions in BEAD broadband grant disbursements amid a legislative probe into alleged favoritism toward satellite providers like SpaceX's Starlink. Lawmakers are scrutinizing changes to the payment structure for low-Earth-orbit providers, with Lt. Gov. Dan Patrick and House Speaker Dustin Burrows requesting an audit for transparency. The freeze affects subgrantees until further notice as political oversight intensifies." datetime: "2026-08-13T07:52:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295765962.md) - [en](https://longbridge.com/en/news/295765962.md) - [zh-HK](https://longbridge.com/zh-HK/news/295765962.md) --- # Texas Freezes Billions in Broadband Grants as Lawmakers Probe Alleged Starlink Favoritism **Space Exploration Technologies Corp.**‘s (NASDAQ:SPCX) **Starlink** has become a flashpoint in Texas’ broadband funding fight after the state temporarily froze BEAD grant disbursements amid a legislative review of allegations that changes to the award process favored low-Earth-orbit providers such as Starlink. ## Texas Freezes Funds As Scrutiny Deepens The Texas Broadband Development Office told subgrantees on Wednesday that the hold took effect Monday and would remain in place "until further notice." It gave no reason, adding, "No further action is required from subgrantees at this time,” according to a report by AP. ## Lawmakers Probe Satellite Payment Rule Changes Scrutiny intensified after Broadband Development Office Director **Bryant Clayton** told lawmakers that Gov. **Greg Abbott’s** (R) office had asked the BDO to review its payment structure for LEO providers shortly before the awards, after which the office changed the disbursement schedule. **Read Also: SpaceX Stock Surges Past $135 IPO Price: What's Going On?** "I have my eye on y’all regarding the way y’all are conducting your business," Republican state Sen. **Charles Schwertner** (R) told Clayton. "We, as an oversight committee, are going to oversee it regarding fairness and transparency." Lt. Gov. **Dan Patrick** and House Speaker **Dustin Burrows** asked the State Auditor’s Office to conduct a performance audit, saying grants must be administered "transparently and responsibly" with a "full accounting" of public funds. Comptroller **Don Huffines** separately launched an internal review. Starlink and **Amazon.com Inc.**’s (NASDAQ:AMZN) satellite broadband business were both selected as Texas BEAD subgrantees. AP said the state had not publicly listed how much each received. Democratic state Sen. **Nathan Johnson** (D) alleged the process may have involved "coordinated corruption," while saying he was not drawing conclusions. _Benzinga reached out to SpaceX for comment but did not receive an immediate response._ ## Starlink Keeps Expanding Amid Texas Controversy The controversy lands as Starlink’s scale keeps growing. SpaceX’s first public quarterly report showed subscribers doubled to 12 million at the end of June, while connectivity revenue rose 66% to $4.29 billion and operating profit reached about $1.7 billion. Starlink is also expanding beyond home broadband into mobile connectivity and international markets. The service began accepting orders in Vietnam this week, its sixth Southeast Asian market. **Benzinga edge rankings** indicate SpaceX stock has a negative price trend across the short, medium, and long term. **Price Action:** SPCX shares were trading 0.38% higher at $146.70 in overnight tading on Wednesday. **Read Also: Elon Musk Says AI Will Be SpaceX's Biggest Business by September: Does the Math Check Out?** Photo courtesy: Shutterstock ### Related Stocks - [SPCX.US](https://longbridge.com/en/quote/SPCX.US.md) - [LOFF.US](https://longbridge.com/en/quote/LOFF.US.md) - [SPAL.US](https://longbridge.com/en/quote/SPAL.US.md) - [SPCF.US](https://longbridge.com/en/quote/SPCF.US.md) - [LOFD.US](https://longbridge.com/en/quote/LOFD.US.md) - [SPCH.US](https://longbridge.com/en/quote/SPCH.US.md) - [SNK.US](https://longbridge.com/en/quote/SNK.US.md) - [SSPC.US](https://longbridge.com/en/quote/SSPC.US.md) - [SPCU.US](https://longbridge.com/en/quote/SPCU.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) ## Related News & Research - [SpaceX Bets on AI as Musk Expects AI Revenue to Surpass All Other Business](https://longbridge.com/en/news/295626882.md) - [19,043 Shares in SpaceX $SPCX Bought by Sage Capital Advisors llc](https://longbridge.com/en/news/295516703.md) - [Harvard University discloses $2.2B holding in SpaceX, Bloomberg says](https://longbridge.com/en/news/296029750.md) - [Elon Musk's SpaceX Lands $1.22 Billion Investment From Norway’s $2.3 Trillion Sovereign Wealth Fund](https://longbridge.com/en/news/295666134.md) - [SpaceX Earnings Highlights from Cathie Wood's ARK Invest](https://longbridge.com/en/news/295434722.md)