Texas AG candidate Nathan Johnson claims SpaceX's $110m grants raise corruption concerns

Nathan Johnson, a Texas Democrat running for attorney general, stated on September 3, 2025, that he will investigate SpaceX if elected, as he believes the $110 million in grants awarded to the company for its Starlink program raise corruption concerns. In an interview with the Dallas News, Johnson criticized the Texas Republican administration for its handling of state grants.

Johnson's Allegations Against SpaceX Grants

Johnson, who secured the Democratic primary runoff for attorney general in May, expressed skepticism over the grant process, asserting that awarding 99% of available funds to a company led by billionaire Elon Musk appears biased. He emphasized, "I am not declaring that corruption was at work in this instance. I am saying that it sure looks like it."

According to Johnson, public confidence in the bidding process has been compromised, necessitating a thorough examination of how state funds are allocated. He criticized the Texas broadband development office for their decisions, which he believes were influenced by Governor Greg Abbott.

Controversial Grant Process and Legislative Scrutiny

The grants for the Starlink program have sparked debate, especially following changes to the grant-awarding rules that allegedly favored low-Earth-orbit satellite providers. Johnson noted that these adjustments were made at the request of the governor's office. He stated, "The office of the governor asked us to look at how our proposed structure compared to other states," highlighting the need for transparency in government contracts.

During a June hearing, members of the Texas broadband development office acknowledged the modifications to the grant process. Bryant Clayton, director of the BDO, admitted that the rules were revised to align with practices in other states.

Political Implications and Future Actions

Johnson's commitment to investigate SpaceX's dealings is part of his broader anti-corruption platform. He has promised to collaborate with the state comptroller to audit the awarding of government contracts. His statements signal a potential shift in how the attorney general's office operates, especially under the current leadership of Ken Paxton, who has faced scandals.

As Johnson prepares for the November election, he has emphasized the role of the attorney general in ensuring that government actions prioritize public interests over private gains. In response, Abbott defended the grants, stating they were necessary to expedite high-speed internet access for rural Texans.

• Johnson's campaign focuses on transparency and anti-corruption.
• 99% of the $110 million grants awarded to SpaceX.
• Changes to grant rules requested by Governor Abbott.
• Public confidence in the bidding process undermined.