Nathan Johnson, the Democrat nominated to run for Texas attorney general, is taking aim at a controversial state grant program that funneled $110 million to Elon Musk's SpaceX for rural internet service. Johnson said Friday he will investigate the deal if elected, describing it as something that "sure looks like" corruption.
Johnson, a state senator who won his party's primary runoff in May, told the Dallas News the grant awards were lopsided. SpaceX received 99% of available funds for its Starlink satellite broadband program, which serves remote areas across Texas. Johnson questioned whether the bidding process was fair and said public confidence in the system has eroded.
"I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it," Johnson said. "Public confidence in the bidding process has been undermined."
The grants were signed off by Republican Governor Greg Abbott after his office reportedly changed the rules to favor low-Earth-orbit satellite providers over ground-based fiber broadband companies. Eight companies offering traditional fiber submitted a complaint letter alleging they had been effectively excluded from the revised application process.
Johnson questioned state broadband office officials during a Texas Senate hearing in June. Bryant Clayton, director of the Texas Broadband Development Office, acknowledged that changes to the grant process came at Abbott's direction. Republican committee chair Charles Schwertner seemed to validate the concern, saying "favoritism and transparency are real big concerns" his office had received.
Johnson has campaigned on an anti-corruption platform, promising to work closely with the state comptroller to audit government contracts. His pledge to scrutinize the SpaceX deal effectively places an investigation of Musk at the center of the November general election matchup.
"The AG is supposed to ensure that government serves the public good over private interests, not the other way around," Johnson posted on X in June, targeting his Republican opponent Mayes Middleton.
Abbott's office has defended the grants. Spokesman Andrew Mahaleris said the governor prioritizes getting broadband to rural Texans "as quickly and cost-effectively as possible." Low Earth orbit satellite service, he argued, is necessary for remote areas where traditional fiber is too expensive and slow to deploy.
SpaceX and the governor's office did not respond to requests for comment.
Author James Rodriguez: "Johnson's promise to investigate Starlink looks like a smart political move, but the real question is whether a Texas AG would actually have the stomach to probe a company headquartered in the state, primary ally of the sitting governor, and bankrolled by one of the world's most litigious billionaires."
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