The state Broadband Development Office (BDO) said the pause was “due to ongoing federal government realignment to meet the priorities of the new federal administration,” in an announcement sent Tuesday by email. Its website has also been updated to reflect the change.
The program derives its funding from the federal Digital Equity Act State Capacity Grant Program, which allocated $55.6 million to Texas. The money was intended for digital equity planning and maintenance of that planning, channeling grants to subgrantees and evaluating their efforts, and for administrative costs. BDO’s Texas Digital Opportunity Plan was accepted in March 2024 by the National Telecommunications and Information Administration as part of the required planning approval process.
The state’s shift follows significant changes to federal policies, including the Jan. 27 funding freeze — subsequently rescinded — that looked to pause trillions of dollars in federal grants and loans.
“Given this uncertainty, the BDO wants potential applicants to avoid investing significant time and resources into preparing applications until the office receives more clarity on the future of the program,” the emailed announcement said. “We understand the importance of these opportunities and the resources needed to pursue them. For that reason, we want to ensure all efforts adhere to and are consistent with program guidelines before funds are made available.”
BDO was established in 2021 under the purview of the Texas Comptroller of Public Accounts. In 2022, federal funding for the office included the Digital Equity Act funding, $500.5 million from the American Rescue Plan — Coronavirus Capital Projects Fund; and at least $100 million from the Broadband Equity, Access and Deployment Program. As of June 2023, it had received $3.3 billion in such funding.
Texas voters have since approved Prop. 8, a constitutional amendment that established the Texas Broadband Infrastructure Fund with $1.5 billion. Its uses include development, construction, reconstruction and expansion of infrastructure or services; operating broadband and telecommunications infrastructure; and provisioning broadband and telecom services. The comptroller has asked for $233.4 million for that fund in fiscal year 2026 and again in fiscal year 2027.
