Texas Requests Audit of Broadband Office After Questions Over Grant Terms

Texas legislative leaders have requested a performance audit of the state office overseeing broadband grants after lawmakers questioned the transparency of the award process and whether low-Earth-orbit satellite providers received different payment terms.

Lt. Gov. Dan Patrick and House Speaker Dustin Burrows made the request July 21 as joint chairs of the Legislative Audit Committee. The State Auditor’s Office review concerns the Texas Broadband Development Office’s administration of state and federal broadband funds. No final audit findings or determination of misconduct has been issued.

What changed

Patrick and Burrows asked the State Auditor’s Office to conduct a performance audit of the Broadband Development Office, commonly called the BDO. In their joint statement, they said the grant process should be transparent, publicly accountable, based on accurate mapping and focused on responsible use of taxpayer money.

The leaders said the request followed concerns raised during a June 24 hearing of the Senate Committee on Business and Commerce. They also said the Legislature would be prepared to consider action during the 90th Texas Legislature after receiving the auditor’s findings.

According to recent Texas Tribune reporting, the audit process had begun by July 28, but no clear completion date had been announced. Residents should therefore treat the matter as an ongoing review, not as a completed audit or a finding that grants were improperly awarded.

Why lawmakers raised concerns

The Senate committee’s June 24 minutes identify an interim charge to examine the BDO’s management of existing state and federal broadband development funds, ongoing funding decisions and its strategic plan for timely deployment.

During the hearing, lawmakers questioned how the office handled upfront payments under the federal Broadband Equity, Access, and Deployment program, or BEAD. The Texas Tribune reported that BDO Director Bryant Clayton told lawmakers the office changed the disbursement schedule specifically for low-Earth-orbit satellite providers shortly before awards were made.

Lawmakers questioned how much the payment terms changed and whether other applicants sought similar treatment. They also raised concerns about access to information on the award process and whether providers had to use public-information requests to obtain records.

Those are questions and allegations raised during legislative oversight. They are not established findings that the BDO favored a provider, violated grant rules or improperly awarded funds. The Texas Comptroller’s office has defended the process and said it expects the audit to address what it described as misinformation about the program.

How much money is involved

Texas was allocated up to $3.3 billion in federal BEAD funding for broadband infrastructure, mapping, adoption, planning and capacity-building, according to the Texas Comptroller’s program records.

The Comptroller’s approved Texas BEAD proposal says the BDO selected 22 applicants to serve more than 240,000 broadband serviceable locations and more than 2,700 community anchor institutions. The plan includes $1.2 billion in federal grant funds and $177 million in state matching funds.

The Comptroller says the BDO is working with awardees to execute grant agreements and expects projects to begin construction as soon as summer 2026. Approved awards, executed grant agreements and completed construction are separate stages, so the published award totals do not by themselves show that construction has been completed at every eligible location.

The program is intended to reach unserved and underserved locations, including rural communities where private providers may not otherwise build high-speed networks. The audit could therefore matter to residents waiting for improved internet access, as well as providers, local governments, schools, health-care facilities and businesses that depend on the projects.

What the audit could examine

A performance audit could review how the BDO evaluated applications, documented decisions, set payment terms and monitored grant agreements. It could also assess whether the office used accurate eligibility maps, tracked progress toward required locations and maintained adequate controls over federal and state funds.

The review may clarify whether different technologies were evaluated under consistent standards and whether payment schedules were supported by written policies and program requirements. It could also identify changes lawmakers may consider for transparency, reporting, oversight or future grant administration.

At this stage, there is no verified conclusion that grants were improperly awarded, that a provider received unlawful treatment or that broadband projects will be delayed or canceled.

What happens next

The next significant step is the State Auditor’s Office’s continued handling of the request and any resulting audit work. A final report, if issued, could give lawmakers a documented basis for changes before or during the 90th Legislature, which is scheduled to begin in January 2027.

For residents, the practical issue is whether the state can show that broadband money is reaching eligible locations under clear terms and that construction progress is being monitored. Until the auditor publishes findings, the July 21 request and the reported start of the review signal heightened legislative scrutiny, not a final judgment about the BDO’s grant decisions.

Sources

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