Update Below - New Information

NTIA, the federal office administering the largest single investment to expand Internet access across the nation, appears to once again be changing the BEAD program in ways that would only force states to further reduce investment in rural areas.

Commerce Secretary Howard Lutnick, who oversees the NTIA office, has already introduced delays to the $42.5 billion Internet access expansion program, creating a year-long slow-down at a time when many states could be already connecting homes.

Now, even as the administration claims to be expediting the process, NTIA seems to have added yet another time-consuming wrinkle: a super secret “Best and Final Offer” round imposed on states after submitting final proposals.

Image

A quick reminder of where we are: states were forced to redo all their work in recent weeks to follow new rules aimed at cutting costs by making the program demonstrably worse for hundreds of thousands of families.

Rather than spend money to help get these families access to comparably affordable fiber networks, states now have to push billions toward low-Earth orbit satellite services which offer them far worse connectivity at much higher prices to each subscriber. And yet, NTIA called this process of reducing investment in rural America the “Benefit of the Bargain” round.

Recent Trump administration changes to a massive federal broadband grant program are lowering standards for broadband access, shifting the focus away from affordability and equity, and potentially redirecting billions of dollars away from future-proof fiber networks toward slower, more expensive satellite options that don’t seem likely to fix U.S. broadband woes.

But states, worried about losing an historic round of broadband grants, may be too intimidated to be up front about the potential downside of changes the Trump administration calls “the benefit of the bargain.”  

That’s the early story coming out of states like Tennessee, Colorado, and Texas, where state leaders are being forced to dramatically revamp billions of dollars in Broadband, Equity, Access, and Deployment (BEAD) grant planning.

In all three states the changes have introduced new delays and lowered last mile quality control standards. But an early look at the revamped bidding process in all three states shows that billions of dollars are likely being redirected away from locally-owned fiber networks to billionaire-owned low-Earth-orbit (LEO) satellite broadband options insufficient to the task.

In the wake of the Trump administration’s re-writing the rules around how federal funds can be spent to expand high-speed Internet access, state broadband offices are in the midst of revamping their broadband deployment grant programs to comply with a “technology-neutral” framework recently imposed on the $42.5 billion federal BEAD (Broadband Equity, Access, and Deployment) program.

Though most states hoped to maximize federal grant funding to build fiber networks, the new guidance released by NTIA in June requires states to ignore the aim of Congress enacted under the bipartisan infrastructure law.

The new NTIA rules call for states to de-prioritize fiber and give equal weight to Low Earth Orbit (LEO) satellite technologies – something many observers see as a gift to Starlink and a way for the President’s biggest campaign contributor to hoover up additional subsidies.

As states wrestle with how to re-do their scoring rubrics used to determine grant awards, today four leading broadband deployment scholars working with the X-Lab released an analysis that may help state broadband offices evaluate “the capacities and saturation limits of the Starlink satellite infrastructure.”

The overarching goal is to help states determine where – and if – Starlink can meet federal requirements for broadband, which is defined as delivering minimum connection speeds of at least 100 Megabits per second (Mbps) download and 20 Mbps upload.

Maine Connectivity Authority President Andrew Butcher has his 1984 yellow Volkswagen van – affectionately known as “Buttercup” – all gassed up and ready to barnstorm across Maine this week.

Butcher and his team will visit libraries, community centers, town halls, Tribal governments, connectivity hubs, and telehealth locations all across the Pine Street State as state broadband officials and local connectivity champions celebrate the broadband expansion work that’s already been done and to gather “local insights (for) the next phase of work.”

The five-day “Driving Connections” tour will highlight broadband infrastructure investments the state has made to bring high-speed Internet access to 86,000 homes and businesses over the past several years.

Image

But, perhaps more crucial to the mission: the tour also aims to rally state leaders and local communities to continue the work, even as the Trump administration “terminated” the Digital Equity Act last month and more recently drastically altered the infrastructure-focused BEAD program – both of which have undermined state’s efforts to expand Internet connectivity and eliminate barriers to broadband adoption.

“It feels like an important time to show how we are connected to each other in more ways than just high-speed Internet connections,” Butcher told ILSR in the days leading up to the tour.