Business

Democratic Texas AG candidate calls for review of Elon Musk Starlink grant

AUSTIN, Texas - Democratic attorney general candidate Nathan Johnson on Friday called for a review of recent state grants giving Elon Musk's satellite internet provider Starlink about $110 million.

Johnson, a Dallas state senator, said the Starlink broadband awards should face additional legislative scrutiny as he unveiled an anti-corruption policy plan that he is making a centerpiece of his statewide campaign.

"I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it," Johnson said in an interview.

Starlink parent company SpaceX did not return messages seeking comment.

His plan comes after Starlink received 99% of the state grants in a government program designed to improve rural broadband access. Johnson said the company received an estimated $110 million.

Testimony at a recent Senate committee hearing indicated that awards to Musk's satellite internet company came after Gov. Greg Abbott's office revised the grant qualifications to favor low Earth orbit internet providers.

Starlink currently dominates the market for low Earth orbit satellite internet service, though an Amazon-backed provider also submitted grant proposals.

Johnson's campaign said that the lopsided award was steered to Musk because of his Republican political connections.

The governor's office has defended the process, saying that low Earth orbit satellite service is essential for reaching the most remote areas, where traditional fiber connections are too costly and time-consuming to build.

Abbott spokesman Andrew Mahaleris said in a previous statement that the Broadband Development Office adjusted the grant schedule "to better align with other states" and speed broadband service to rural communities.

Johnson said the Senate's Business and Commerce Committee, of which he is a member, should review the Starlink funding.

"I trust my colleagues to do an honest job," he said.

Johnson is campaigning to overhaul the office after Attorney General Ken Paxton's tenure, highlighting the Starlink broadband funding as an example of the need for stronger oversight of state contracting.

In his anti-corruption plan, Johnson proposed expanding the office's consumer protection efforts, bolstering whistleblower protections and more aggressively enforcing antitrust laws. He said the office should focus less on social conservative causes.

Johnson faces state Sen. Mayes Middleton, R-Galveston, in November's election. Middleton has aligned himself closely with President Donald Trump.

Johnson said he would direct the attorney general's office to work with the state comptroller to audit how government contracts are awarded.

"Public confidence in the bidding process has been undermined," Johnson said.

Government spending hasbecome a campaign issue for several Democratic candidates.

Gubernatorial candidate Gina Hinojosa, an Austin state representative, has criticized no-bid contracts she said were awarded to Abbott's political donors. And comptroller candidate Sarah Eckhardt, an Austin state senator, has called for comprehensive audits of state contracts.

The attorney general's office is among the largest agencies in state government, representing Texas in lawsuits, enforcing child support laws and overseeing government transparency requirements.

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published July 10, 2026 at 11:03 AM.

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