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Broadband grants paused as critics allege favoritism toward Elon Musk’s Starlink

Broadband grants paused as critics allege favoritism toward Elon Musk’s Starlink

Summary

Texas paused all payments from a federal broadband funding program after accusations that the state gave special treatment to Elon Musk’s Starlink satellite internet service. Lawmakers called for an audit to check if the grant process was fair and transparent.

Key Facts

  • Texas Broadband Development Office stopped all payments from the Broadband Equity, Access and Deployment (BEAD) program.
  • The pause began Monday and will continue until further notice.
  • Accusations claim favoritism toward Starlink, Elon Musk’s satellite internet company.
  • The grant rules were changed days before awards, allowing satellite providers to get more upfront money than other companies.
  • The change came from Texas Governor Greg Abbott’s office.
  • Lawmakers, including Senator Charles Schwertner and others, are demanding transparency and an audit of the broadband office.
  • Starlink is the largest low-Earth orbit satellite internet provider in Texas with over 12 million customers worldwide.
  • Some politicians suggested the grant process might involve corruption linked to state and federal officials and private companies.
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