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Texas Low Earth Orbit (LEO) Satellite Grant Program
In 2023, the Texas Legislature allocated $1.5 billion to the Broadband Infrastructure Fund to expand and ensure access to reliable, high-speed broadband connectivity. Using this state funding, the Broadband Development Office (BDO) has dedicated up to $30 million to create a pilot program to assess the feasibility of using LEO satellite technology to expand broadband service capacity to hard-to-reach locations, particularly in rural areas that face significant barriers to digital connectivity due to geographical challenges or that may have lacked acceptable proposals under past grant programs.
The LEO Program is just one of several initiatives the BDO will administer to close the digital divide. This program will specifically target qualified remote and rural locations in Texas. These locations have been proven to be extremely difficult to reach and serving them with traditional wireline infrastructure could be cost prohibitive. A benefit of LEO satellite technology is that it does not require significant construction to connect locations, allowing it to be deployed to hard-to-reach locations quicker than traditional broadband infrastructure and at a lower cost to taxpayers.
What is LEO Satellite Service Technology?
LEO satellite service technology utilizes constellations of satellites orbiting relatively close to Earth, typically between 300 and 1,200 miles above Earth’s surface. This proximity significantly reduces latency compared with traditional geostationary satellites, which orbit much farther out. LEO constellations are designed to provide global broadband coverage, enabling high-speed internet access in areas where traditional wireline infrastructure is limited or nonexistent. These systems employ advanced technologies for signal processing and satellite handoff, ensuring continuous connectivity as satellites move across the sky.
The benefits of LEO satellite service over wireline broadband are particularly evident in remote and un/underserved regions. The technology can deliver reliable, high-speed internet to areas where laying fiber optic cables or building cellular towers is economically prohibitive or logistically challenging. Furthermore, LEO satellite service offers increased resilience in disaster-prone areas, where terrestrial infrastructure may be damaged. This also makes it a valuable asset for emergency response and maintaining critical communication links.
Program Details
The LEO Program is a competitive grant program that seeks to award funds to qualified LEO providers for the purposes of building high-speed, low-latency satellite internet access and capacity to eligible locations. The initial pilot phase will focus on areas of the state that did not attract competitive bids in prior grant programs. The program will start with a pilot program encompassing a limited block of initial network reservations. As the number of subscriptions increase, the LEO Program may incrementally expand up to 10,000 locations. The BDO will periodically evaluate the pilot's impact and success, including the total number of subscriptions, before determining the feasibility of a potential statewide expansion effort.
Eligible Locations
Eligibility for the pilot phase of the program is limited to broadband serviceable locations (BSLs), such as homes, businesses and community anchor institutions, located in the following counties that meet the state’s definition for an unserved location:
- Brewster County.
- Culberson County.
- Hudspeth County.
- Jeff Davis County.
- Presidio County.
Prospective subscribers looking to take advantage of this program at their home or business must subscribe through the selected provider. More details will be provided following award decisions on how residents can subscribe.
Note: The BDO will not pay for subscription services. Subscribers will be responsible for all costs associated with their subscription agreement.
Notice of Funding Availability (NOFA)
The BDO published a NOFA on April 9, 2025, seeking applications from qualified internet service providers offering commercial LEO internet services. Following the application window, the BDO will evaluate all eligible applications and expects to notify awardees by summer 2025. Information about the application submission and evaluation process are described in the program’s NOFA.
It is the responsibility of an interested party to check the solicitation page regularly for updates to this NOFA before submitting an application. Additional details about the program will be provided following an application challenge process and the issuance of awards.
Clarifying Questions and Responses
Potential applicants may submit written questions regarding the published NOFA via email to the BDO no later than Friday, April 18, 2025, at 2 p.m. CT. For detailed instructions on submitting requests for clarification, refer to Section II.H of the NOFA.
Following the question submission deadline, the BDO will publish all responses and any necessary updates to the solicitation through an addendum process.
The BDO will not respond to inquiries regarding the NOFA after the question submission deadline, including the evaluation status of applications or any other information about grant awards beyond publicly available information.
Challenge Period
In accordance with state statute, the BDO will operate a 30-day challenge period immediately following the publication of application information for all accepted proposals on the BDO’s website. During this period, any interested party may submit a challenge relating to whether an applicant or a proposed project is eligible for an award or should not receive an award based on the application using criteria prescribed by the BDO.
Detailed guidance on the challenge process will be available soon.
All application details, including proposal format, timelines and challenge process information, will be published on this page. Check back regularly for updates.
Resources
- Review the LEO Satellite NOFA.
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