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Comptroller, LBB detail federal BEAD funds, county targeting and a satellite pilot for rural broadband
Summary
The comptroller’s office and LBB discussed federal BEAD funding, state matches and program structure, including a county‑targeted round and a $30 million low‑orbit satellite pilot to reach unserved rural locations.
Legislative Budget Board staff and Comptroller Glenn Hager described federal and state broadband funding the comptroller’s office plans to use to expand service in unserved areas of Texas.
The LBB brief noted a net increase in fiscal program funding to about $5.7 billion in all funds for the 2026–27 biennium, driven primarily by newly available federal BEAD (Broadband Equity, Access and Deployment) grant funding and a rider appropriation of $1.3 billion for a transfer to the Texas Fund. LBB recommended reclassifying federal funds in a specified GRD account and granting an exceptional item request for $1.67 billion in BEAD funding to deploy broadband.
Comptroller Hager said the agency anticipates receiving approximately $1.67 billion from the federal BEAD program and is using a mix of federal and state dollars and program design choices to meet federal timelines. He told senators the office targeted the remaining funds to 24 counties — two in each of the state’s 12 economic regions — to ensure the funds could be deployed within federal deadlines and to avoid overlapping awards across competing ISP proposals.
Hager also said the office opened a $30 million pilot for low‑earth‑orbit satellite proposals to reach locations where fiber is not feasible and that the agency is working with technical partners to review ISP proposals and past performance. The comptroller’s office said matching and timing requirements from federal partners mean some awards and disbursements will take months to finalize; staff said they expect some local disbursements next year after federal approvals.
Why it matters: BEAD and state broadband programs determine which rural and hard‑to‑reach communities receive funding and set the technology mix (fiber, wireless, satellite) used to expand service. Senators asked for lists of targeted counties and asked the comptroller to provide clearer timelines and historical accounting of broadband project funding.
The broadband development office uses a combination of technical reviews (with academic or technical contractors) and financial and past‑performance reviews to score ISP proposals and award contracts, the comptroller’s office said. The finance staff said they would provide lists of selected counties and award schedules to members on request.
