Texas Democrat Calls for Scrutiny of SpaceX Grants, Vows Investigation if Elected AG

Key Allegations Raised by Johnson

Texas Democrat Nathan Johnson, who recently won the Democratic primary runoff for attorney general, has raised significant concerns over a deal struck between Texas’s Republican government and SpaceX, led by billionaire Elon Musk. In an interview with the Dallas News on Friday, Johnson highlighted that 99% of available grant funds were awarded to SpaceX, arguing that this “sure looks like” corruption.

Johnson emphasized the need for greater legislative scrutiny of state grants provided to SpaceX through its Starlink satellite program, which aims to provide fast internet access in remote areas. He stated that public confidence in the bidding process has been undermined and called for an overhaul of the office of the Texas attorney general if elected.

Previous Controversies and Revisions

The deal between Texas’s broadband development office (BDO) and SpaceX has become a source of controversy. Records reveal that rules were changed to favor low-Earth-orbit satellite providers, allowing SpaceX to secure the grant funding. At a hearing with the state senate's business and commerce committee, BDO director Bryant Clayton acknowledged that changes to the grant-awarding process came at Governor Greg Abbott’s behest.

During his primary campaign, Johnson promised to overhaul the office of the Texas attorney general, a position currently held by Ken Paxton, who is facing scandals. He has said he will work closely with the state comptroller to audit how government contracts are awarded. The Starlink grants, signed off by the Republican Texas governor, Abbott, after his office reportedly revised rules to favor low-Earth-orbit satellite providers in bids to provide rural internet access, have become a particular source of controversy.

According to records, Musk has made previous monetary donations to Abbott, among many others, but there is no suggestion it is linked to the grants. Johnson questioned members of the Texas broadband development office (BDO) at a hearing of the state senate’s business and commerce committee in June, where they conceded changes to the grant-awarding process came at Abbott's behest.

“The office of the governor asked us to look at how our proposed structure compared to other states,” Bryant Clayton, director of the BDO, told KUT News. “Generally … we were out of step with other nearby states.” Eight companies offering ground-based fiber broadband complained in a letter they appeared to have been cut out of the revised grant application process, a development the committee’s chair, Republican Charles Schwertner, seemed to acknowledge.

“I’ll just say it bluntly. Favoritism and transparency are real big concerns that have been brought to my office,” he told the hearing. The concern over favoritism and lack of transparency has been a major point of contention between the parties involved.

Republican Defense and Future Prospects

Abbott defended the grants by emphasizing their cost-effectiveness for reaching remote areas where traditional fiber is too expensive. In a statement, Abbott’s press secretary Andrew Mahaleris said: ‘Governor Abbott supports getting high-speed internet to rural Texans as quickly and cost-effectively as possible.’ However, Johnson plans to investigate SpaceX's dealings if he wins the election in November, highlighting his anti-corruption policy plan on the campaign trail.

The Guardian has contacted SpaceX and Abbott's office for comment but neither responded to its requests.

Source: The Guardian