Texas Proposition 8 is the constitutional amendment that voters approved on November 7, 2023, creating the Broadband Infrastructure Fund with $1.5 billion in state money to expand high-speed internet across Texas. It added a new section to Article III of the Texas Constitution, grew out of House Joint Resolution 125 during the 88th Legislative Session, and was implemented through House Bill 9. The fund targets communities where reliable broadband is unavailable or inadequate, and it serves as the state’s vehicle for drawing down billions of dollars in federal broadband money.
What the Amendment Actually Did
Prop 8 established the Broadband Infrastructure Fund (BIF) as a special fund in the state treasury.1Texas Comptroller. Fund 0191 – Texas Broadband Infrastructure Fund The legislature set aside $1.5 billion contingent on voter approval, and once the amendment passed, that money became available without further legislative appropriation.2Texas Comptroller. Broadband Funding Programs The administering agency can distribute grants without returning to lawmakers each session.
The constitutional text authorizes spending in four categories: building and expanding broadband infrastructure, operating that infrastructure, providing broadband and telecommunications services directly, and covering reasonable administrative and investment management expenses.3Texas Legislature Online. HJR 125 Enrolled Version The fund also accepts gifts, grants, and investment earnings, so the balance can grow over time.
Who Runs the Fund
Unlike most Texas infrastructure funds, the BIF is not managed by a development board. The Texas Comptroller’s office administers it through the Broadband Development Office (BDO).1Texas Comptroller. Fund 0191 – Texas Broadband Infrastructure Fund The BDO handles grant applications, sets program priorities, publishes funding opportunities, and distributes money to eligible projects.
The office can award contracts, grants, low-interest loans, and other financial incentives. Awards are restricted to capital expenses, property purchases or leases, backhaul and transport, and similar costs that directly facilitate broadband service delivery.2Texas Comptroller. Broadband Funding Programs Ordinary operating costs of grant recipients, such as routine payroll or marketing, are not covered.
What the Money Pays For
The $1.5 billion is split across several programs rather than flowing through a single pipeline.
Bringing Online Opportunities to Texas (BOOT)
BOOT is the flagship program. It funds last-mile projects, the final stretches of cable or fiber that connect individual homes, businesses, and schools to the network. Projects must target eligible unserved and underserved locations.4Texas Comptroller. Notice of Funding Availability for Broadband Grant Applications
Texas Middle Mile Program
The BDO allocated up to $200 million from the BIF for grants that build and improve middle-mile infrastructure, the backbone connections linking local networks to the broader internet.2Texas Comptroller. Broadband Funding Programs Rural areas often suffer from thin middle-mile capacity because the economics of running fiber across long distances to serve sparse populations discourage private investment.
Broadband Pole Replacement
HB 9 directed a one-time $75 million transfer from the BIF to a separate Broadband Pole Replacement Fund.1Texas Comptroller. Fund 0191 – Texas Broadband Infrastructure Fund That program reimburses a portion of eligible pole-replacement costs to speed rural deployment.2Texas Comptroller. Broadband Funding Programs
Next Generation 9-1-1
HB 9 also required a $155 million transfer from the BIF to the Next Generation 9-1-1 Service Fund, upgrading emergency communications so 9-1-1 systems can handle text messages, images, and video rather than voice calls alone.1Texas Comptroller. Fund 0191 – Texas Broadband Infrastructure Fund
Workforce Grants
The BDO committed up to $25 million for competitive grants that establish and expand tuition-free, industry-aligned training programs. Deploying billions in infrastructure requires workers trained to install and maintain it, and the state didn’t have enough qualified installers for the planned pace of construction.
Who Gets Priority
Money doesn’t flow evenly across Texas. Program guidelines send it first to communities with the weakest connectivity:
- Unserved locations: areas with download and upload speeds below 25/3 Mbps.
- Underserved locations: areas with speeds above 25/3 Mbps but below 100/20 Mbps.
Projects deploying end-to-end fiber optic technology receive priority over fixed wireless, satellite, and other alternatives.2Texas Comptroller. Broadband Funding Programs Fiber lines installed today can carry faster speeds later with upgraded equipment at either end, while most other technologies hit physical limits sooner.
How It Unlocks Federal BEAD Money
One of the BIF’s most consequential roles is providing state matching funds for the federal Broadband Equity, Access, and Deployment (BEAD) Program.2Texas Comptroller. Broadband Funding Programs BEAD is the largest federal broadband investment in U.S. history, and states must contribute matching funds to receive their full federal allocation. By standing up a $1.5 billion state fund, Texas positioned itself to draw down substantially more in federal dollars than it put in.
The Comptroller provides state matching funds only where the contribution is necessary for a project’s economic feasibility. That keeps the state from subsidizing projects that would pencil out on their own.
Who Can Apply
Individual residents and businesses cannot apply for BIF money directly. The fund is built for entities that construct and operate broadband networks: internet service providers, electric cooperatives, local governments, and similar organizations. The BDO publishes Notices of Funding Availability (NOFAs) when grant rounds open, and each NOFA specifies the program, eligible project types, and application deadlines.4Texas Comptroller. Notice of Funding Availability for Broadband Grant Applications
Applicants must show that their projects will deliver reliable, high-speed broadband to eligible unserved or underserved locations. The BDO scores submissions on population served, technology deployed, project feasibility, and alignment with state broadband goals. Competitive scoring means a project can meet minimum requirements and still miss funding.
Don’t Confuse It With Prop 6
On the same November 2023 ballot, voters also approved Proposition 6, which created the Texas Water Fund with roughly $1 billion for water infrastructure.5Texas Water Development Board. Texas Water Fund Prop 6 came from Senate Joint Resolution 75 and Senate Bill 28, and the Texas Water Development Board runs it.6Texas Legislature Online. SJR 75 Enrolled Version The two are often mixed up because both passed the same day and both involved large infrastructure investments. Prop 8 is broadband. Prop 6 is water. Different agencies, separate application processes.