Texas is getting ready to spend another $300M on its space industry. South Texas could benefit again

Texas is one step closer to investing another $300 million in its space industry after the Texas Space Commission launched the planning process for its next round of grants.

The move brings the state’s total commitment to the sector to $450 million. Lawmakers created the Space Exploration and Aeronautics Research Fund, or SEARF, in 2023 and approved an additional $300 million for the program in 2025. 

This week, the commission announced it has already committed the program’s first $150 million, including the $7.5 million awarded to SpaceX to help build the foundation for its Gigabay Starship facility at Starbase in Cameron County.

No new grants were awarded this week. Instead, the commission began gathering the information it says it needs to determine where the state’s next $300 million in space funding can have the greatest impact.

While the commission has not identified future grant recipients, companies already investing in Texas are expected to pursue additional funding opportunities as they become available.

For the Rio Grande Valley, that could mean additional funding opportunities for SpaceX and other related businesses as SpaceX continues expanding its manufacturing, testing and launch operations at Starbase.

Rather than immediately awarding grants, the commission is asking companies, universities and industry organizations what infrastructure Texas needs most to remain competitive in the fast-growing space economy.

“Texas is building on its momentum by focusing on the infrastructure, data, partnerships and talent needed to advance a robust space economy,” Texas Space Commission Chair Gwen Griffin said.

During a board meeting this week, commissioners approved a request for proposals to study the viability of launch and re-entry sites across Texas, along with several requests for information focused on spacecraft testing facilities, rocket propulsion testing, national security space infrastructure and technologies needed for future human spaceflight.

The information will help the commission identify the state’s biggest infrastructure needs before deciding which projects should receive funding through future competitive grant opportunities.

The board also approved plans for a grant program that would match certain federal research awards for small businesses working on projects funded by agencies such as NASA, the U.S. Department of Defense and the National Science Foundation.

The commission said future grant opportunities will be announced as the next funding cycle moves forward.