Texas Broadband Grant Rules Draw Senate Scrutiny

**McKinney, Texas** — A Texas Senate committee hearing has put new attention on how the state is handling broadband grants, after lawmakers questioned whether recent rule changes give satellite internet providers different treatment from companies building fiber and cable networks.

For McKinney readers, the issue is statewide because the grant program is meant to expand internet service across Texas, including communities where access, speed and build-out costs remain part of local infrastructure planning.

KUT reported July 2 that the Texas Broadband Development Office, which is tied to distribution of more than $5 billion in state and federal broadband funding, faced questions at a June 24 Senate Business and Commerce Committee hearing. Lawmakers focused on changes to grant disbursement rules for providers using low Earth orbit satellite technology.

Committee members said at the hearing that other broadband applicants had requested changes of their own and questioned why those requests were not handled the same way. Broadband Development Office director Bryant Clayton testified that the governor’s office asked the agency to compare its proposed structure with approaches in other states, according to KUT.

The governor’s office told KUT that Gov. Greg Abbott supports delivering high-speed internet to rural Texans quickly and cost-effectively, and said satellite service is important in remote areas where fiber can be slow or expensive to build. The hearing comes as states adjust to federal broadband rules that now require technology-neutral grant awards.

Source: https://www.kut.org/energy-environment/2026-07-02/texas-tx-broadband-development-musk-starlink-rural-internet-governor-abbott