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Texas AG candidate alleges corruption in $110m Starlink grant to Musk's SpaceX

Created at 10 Jul · 3:05 PM1 source↑ Market-relevant
IN SHORT

A Texas Democrat running for attorney general claims a $110 million grant to Elon Musk's SpaceX for its Starlink program "sure looks like" corruption. Nathan Johnson vows to investigate the deal if elected, citing concerns over favoritism and transparency in the grant-awarding process.

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Key Numbers

$110mgrant amount to SpaceX
99%of available grant funds awarded to SpaceX

Who's Involved

Nathan Johnson
Texas Democrat running for attorney general, state senator
Elon Musk
Leader of SpaceX, recipient of Starlink grants
SpaceX
Company receiving $110m in Texas grants for Starlink
Greg Abbott
Governor of Texas who signed off on the grants
Ken Paxton
Current Texas Attorney General, Republican nominee for US Senate
Charles Schwertner
Chair of the state senate's business and commerce committee
Bryant Clayton
Director of the Texas broadband development office (BDO)
Mayes Middleton
Republican opponent of Nathan Johnson for Texas AG

↳ Why This Matters

The allegations raise questions about the integrity of state grant processes and the potential for political favoritism in awarding public funds, particularly when involving high-profile figures and companies like Elon Musk and SpaceX. This could impact public trust in government contracting and influence future political races.

Key facts

  • Texas AG candidate Nathan Johnson alleges a $110 million grant to Elon Musk's SpaceX for Starlink "sure looks like" corruption.
  • Johnson vows to investigate the grant if elected, citing concerns over favoritism and transparency.
  • The grant was awarded after Texas revised rules to favor low-Earth-orbit satellite providers.
  • Governor Greg Abbott defended the grant as essential for providing internet to remote areas.
  • Johnson is running against Republican opponent Mayes Middleton.

Nathan Johnson, a Texas Democrat vying for the state's attorney general position, has stated that a $110 million grant awarded to Elon Musk's SpaceX for its Starlink satellite internet program "sure looks like" corruption. Johnson, currently a state senator, expressed his intention to investigate the deal if elected, citing concerns about the fairness and transparency of the grant process.

In an interview with The Dallas News, Johnson highlighted that SpaceX received 99% of the available grant funds. He noted that the grant rules were reportedly revised by Governor Greg Abbott's office to favor low-Earth-orbit satellite providers, a move that has drawn criticism from companies offering ground-based fiber broadband.

Johnson questioned officials from the Texas broadband development office (BDO) in June, who confirmed that changes to the grant-awarding structure were made at the governor's request to align with practices in other states. The committee's chair, Republican Charles Schwertner, also acknowledged concerns regarding favoritism and transparency.

Governor Abbott's office defended the grants, stating that low-Earth-orbit satellite service is crucial for providing high-speed internet to remote areas where traditional fiber infrastructure is prohibitively expensive and slow to deploy. While records indicate Elon Musk has made political donations, there is no direct suggestion of a link to these specific grants.

Johnson has campaigned on an anti-corruption platform and has framed his potential investigation into the SpaceX grants as a key promise to the electorate.

Frequently asked questions

Nathan Johnson is a Texas state senator and a Democrat running for Texas Attorney General. He won his party's primary runoff in May.

Starlink is a satellite internet constellation operated by SpaceX, providing high-speed internet access to customers in remote and underserved areas.

The grants are controversial because critics allege favoritism and a lack of transparency, with rules reportedly revised to benefit SpaceX, which received the vast majority of the funds.

Elon Musk's company, SpaceX, received $110 million in Texas grants for its Starlink program. Musk is a prominent figure and ally of Donald Trump.

What Happens Next

01Nathan Johnson will face Republican opponent Mayes Middleton in the race for Texas Attorney General.
02Johnson has pledged to investigate the Starlink grants if elected.

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Cadence

How It Developed

Nathan Johnson, a Texas Democrat running for attorney general, stated that a $110 million grant to Elon Musk's SpaceX for its Starlink program "sure looks like" corruption.
Johnson, a state senator, called for greater legislative scrutiny of state grants awarded to SpaceX.
He won the Democratic primary runoff for attorney general in May.
Johnson promised to overhaul the Texas attorney general's office and audit government contracts.
The Starlink grants were signed off by Texas Governor Greg Abbott after his office reportedly revised rules to favor low-Earth-orbit satellite providers.
Records show Musk has made previous donations to Abbott, though no link to the grants is suggested.
Johnson questioned the Texas broadband development office (BDO) in June, where officials conceded rule changes were made at Abbott's request.
Eight companies offering ground-based fiber broadband complained about being excluded from the revised process.

Sources

T1
Democrat running for Texas AG claims $110m in grants for Starlink ‘sure looks’ like corruptionThe Guardian

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