Texas Democratic attorney general candidate Nathan Johnson pledged on Friday to investigate a $110 million state contract awarded to Elon Musk's SpaceX for rural internet provision if he wins the upcoming election.
State Senator Nathan Johnson, who secured the Democratic primary nomination in May, questioned the decision by Texas Republicans to allocate 99 percent of available rural broadband funds to the Starlink satellite program.
In an interview with the Dallas News, Johnson expressed concern over the transparency of the bidding system managed by state officials.
"I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it," Johnson said.
The candidate further emphasized that the lopsided distribution of public funds to a single corporation has generated widespread skepticism regarding the integrity of government procurement.
"Public confidence in the bidding process has been undermined," Johnson added.
Johnson later expanded on his campaign platform on social media in June, arguing that the primary responsibility of the state's top legal officer is to safeguard public resources rather than advance corporate interests.
"The AG is supposed to ensure that government serves the public good over private interests, not the other way around," Johnson said.
The controversy intensified after legislative hearings revealed that the Texas broadband development office altered its grant selection criteria following a directive from the governor's office.
Ground-based broadband providers subsequently complained that the revised guidelines effectively excluded them from competing for the funds.
"The office of the governor asked us to look at how our proposed structure compared to other states," said Bryant Clayton, Director of the Texas Broadband Development Office.
Clayton explained to the senate business and commerce committee that the initial framework required adjustments to align with regional standards.
"Generally … we were out of step with other nearby states," Clayton said.
Republican State Senator Charles Schwertner, who chairs the legislative committee, acknowledged the complaints raised by traditional fiber-optic companies regarding the modified selection process during the June hearing.
"I'll just say it bluntly. Favoritism and transparency are real big concerns that have been brought to my office," Schwertner said.
The administration of Governor Greg Abbott defended the decision to utilize low-Earth-orbit satellites, asserting that satellite technology offers a more practical and immediate solution for remote areas compared to expensive underground fiber cables.
"Governor Abbott supports getting high-speed internet to rural Texans as quickly and cost-effectively as possible," said Andrew Mahaleris, Press Secretary for Governor Greg Abbott.
Mahaleris maintained that the geographical challenges of rural Texas justified the selection of SpaceX's network over traditional infrastructure options.
"Low Earth orbit satellite service is essential for the most remote areas where traditional fiber is too expensive and slow to build," Mahaleris said.
