Nathan Johnson, a Texas Democrat running for state attorney general, has pledged to investigate Elon Musk's SpaceX over a $110m grant deal for its Starlink satellite internet program, calling the arrangement 'sure looks like' corruption. In an interview with the Dallas News on 3 September 2025, Johnson, a state senator who won the Democratic primary runoff in May, criticized the award of 99% of available grant funds to a company led by Musk, a prominent ally of Donald Trump.
Johnson Questions Grant Process
'I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it,' Johnson told the Dallas News. 'Public confidence in the bidding process has been undermined.' He argued that the lopsided allocation of taxpayer money warrants legislative scrutiny and a full audit by the state comptroller if he is elected in November.
The grants, signed off by Republican Governor Greg Abbott, have sparked controversy after his office reportedly revised rules to favor low-Earth-orbit satellite providers like Starlink over traditional fiber-optic broadband. Records show Musk has made donations to Abbott, but no direct link to the grants has been established.
Hearing Reveals Governor's Role
At a Texas Senate business and commerce committee hearing in June, Johnson questioned officials from the Texas broadband development office (BDO). Director Bryant Clayton admitted changes to the grant process came at Abbott's behest: 'The office of the governor asked us to look at how our proposed structure compared to other states.' Eight fiber broadband companies complained they were effectively excluded from the revised process.
Committee chair, Republican Charles Schwertner, acknowledged concerns: 'I'll just say it bluntly. Favoritism and transparency are real big concerns that have been brought to my office.'
Johnson's Anti-Corruption Platform
Johnson has campaigned on an anti-corruption platform, promising to overhaul the attorney general's office currently led by scandal-ridden Republican Ken Paxton, who is running for US Senate. 'The AG is supposed to ensure that government serves the public good over private interests, not the other way around,' Johnson wrote on X in June, targeting his Republican opponent Mayes Middleton, a Trump loyalist.
If elected, Johnson says he will investigate the Starlink deal and other state contracts with SpaceX, headquartered in Starbase, Texas. NBC News noted that his pledge effectively puts an investigation into Musk on the ballot.
Abbott Defends Grants
Governor Abbott has defended the grants, arguing they are essential for connecting rural Texans. 'Governor Abbott supports getting high-speed internet to rural Texans as quickly and cost-effectively as possible,' said press secretary Andrew Mahaleris. 'Low Earth orbit satellite service is essential for the most remote areas where traditional fiber is too expensive and slow to build.'
The Guardian contacted SpaceX and Abbott's office; neither responded to requests for comment, according to the Dallas News.
