The Texas Broadband Development Office (BDO) has temporarily halted disbursements from the federal Broadband Equity, Access and Deployment program as the office faces ongoing scrutiny of its administration of state and federal broadband funds.
BDO notified grant recipients that the hold took effect Monday and would remain in place until further notice, according to an email obtained by The Texas Tribune. The notice did not state why the disbursements were being paused and told recipients that no further action was required at the time.
The pause follows a performance audit ordered last month by Lt. Gov. Dan Patrick and House Speaker Dustin Burrows. Lawmakers questioned BDO’s evaluation of grant applications, changes to payment terms, mapping data and documentation supporting award decisions.
The audit is expected to examine the office’s transparency, accountability and use of taxpayer funds. BDO is also part of a separate internal review by the Texas Comptroller of Public Accounts.
Texas was allocated up to $3.3 billion through the federal program. The state selected 22 applicants for $1.2 billion in federal grants and $177 million in state matching funds, with the projects intended to serve more than 240,000 broadband-serviceable locations and more than 2,700 community anchor institutions.
The scrutiny intensified after a June Senate Committee on Business and Commerce hearing, where lawmakers raised questions about payment terms for low-Earth-orbit satellite providers, how competing applications were evaluated and whether some middle-mile projects were proposed in areas where broadband infrastructure already existed.
BDO Director Bryant Clayton told lawmakers that the office changed the payment schedule for satellite providers after provisional awards were made but before grant agreements were executed. Five providers later declined awards or did not execute agreements, requiring BDO to prepare another competitive process for affected locations.
BDO has not announced when the disbursement hold will be lifted.
Texas Broadband Office Halts Federal Grant Disbursements Amid Reviews
What to Know:
- The hold took effect Monday and will remain in place until further notice, with no reason provided to grant recipients.
- The action comes as the State Auditor’s Office conducts a performance audit and the comptroller conducts a separate internal review.
- Texas selected 22 applicants for $1.2 billion in federal grants intended to serve more than 240,000 broadband-serviceable locations.
