A Notice of Funding Availability (NOFA) published yesterday indicates that Texas is progressing in its pilot program to assess satellite technology as a delivery mechanism for broadband in physically challenging areas of the state.
On January 17, Texas Comptroller Glenn Hegar announced that the Texas Broadband Development Office (BDO) had begun developing the pilot program to award one or more providers “to support the deployment of LEO satellite broadband service in rural, unserved areas of Texas.” The announcement stated that $30 million from Texas’ Broadband Infrastructure Fund would be used to provide service to eligible locations.
On April 9, Comptroller Hegar announced that his agency is now requesting grant applications for the Texas Low Earth Orbit (LEO) Satellite Broadband Grant Program (LEO Program). The Notice of Funding Availability (NOFA) was published on the Electronic State Business Daily.
The grant program aims to provide funding to qualified LEO providers to develop high-speed, low-latency satellite internet services for eligible locations. It focuses on rural regions that encounter substantial obstacles to traditional, terrestrial digital connectivity due to challenging geography. In its initial pilot phase, the program will target areas within the state that previously failed to attract competitive bids under earlier grant initiatives.
Beginning with a limited set of initial network reservations, the program is structured to expand gradually, potentially reaching up to 10,000 locations as subscriptions grow. The Texas BDO will routinely assess the satellite broadband pilot’s outcomes and effectiveness, including subscription numbers, before deciding whether a broader statewide rollout is feasible.
Potential applicants will have until Friday, April 18 at 2 p.m. to submit questions and request clarifying information about the solicitation. The BDO said it will provide timely responses and holds the option to make any necessary updates to the solicitation through the addendum process.
Applications will be accepted no later than Friday, May 23, 2025 at 2 p.m.
In March, Hegar indicated that Texas may be returning up to $1 billion in BEAD funds to the federal government because it was no longer needed after the state obtained more than $700 million for broadband infrastructure development from other sources, including state and private-sector initiatives. However, Hegar also said he was interested in repurposing some of the funding for non-deployment uses such as workforce development.
The same day as the Texas LEO Program announcement, Amazon planned to deploy its first 27 satellites from Cape Canaveral Space Force Station as part of its Project Kuiper satellite broadband initiative. However, the launch was scrubbed after dealing with poor weather for several hours.
