Texas Hold 'Em: State Freezes BEAD Funding Amid Musk Favoritism Claims
The Texas Broadband Development Office (BDO) says that it has placed Broadband, Equity, Access, and Deployment (BEAD) broadband grant money on hold to address continued claims that the program has been unfairly tilted to the direct benefit of billionaire Elon Musk.
In July, the office faced widespread accusations that Trump administration changes made to the BEAD program deprioritized faster fiber technologies and gave an unfair advantage to Elon Musk, Jeff Bezos, and their slower, more congested low-Earth-orbit (LEO) satellite technologies.
The changes were part of the Trump administration’s misleadingly-named “benefit of the bargain” modifications, which eliminated requirements that taxpayer-funded broadband be affordable to the public, removed efforts to ensure equitable broadband delivery, and doled out billions to Musk and Bezos for satellite service they’d already planned to deploy.
An email obtained by the Texas Tribune sent from the state broadband office to subgrantees says that a hold is being placed on all BEAD disbursements “until further notice.”
“No further action is required from subgrantees at this time,” the office said in the email. “The BDO will provide additional guidance and updates as they become available.”
The email does not provide a reason for the hold, and the Texas Broadband Office did not respond to a request for comment. But the hold comes just a week after Texas Comptroller Don Huffines announced a comprehensive internal review of his office, including the state broadband office, in part to address complaints of Musk favoritism.
