NTIA Announces BEAD Reforms; States to Refile Implementation Plans

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) today released a policy notice, making significant changes to the Broadband Equity, Access, and Deployment (BEAD) program. NTIA said the goal is to improve the cost-efficiency of the program, remove regulatory burdens on applicants for BEAD funding and to reset the fiber-favoring rules under the Biden Administration’s original Notice of Funding Opportunity (NOFO) document to technology-neutral rules. NTIA has been working since March to implement BEAD reforms.

“President Trump promised to put an end to wasteful spending, and thanks to his leadership, the American people will get the benefit of the bargain, with connectivity delivered around the country at a fraction of the cost of the original program,” said Commerce Secretary Howard Lutnick in a statement. During a June 5 Congressional hearing (pictured above), Lutnick said NTIA could begin funding in 2025.

The $42.45 billion BEAD program, enacted as part of the Infrastructure Investment and Jobs Act (IIJA) in 2021, will fund state broadband agencies for distribution to individual construction projects. The NOFO directed states to develop detailed BEAD rules that included several requirements, including diversity, equity and inclusion labor rules, climate change and net neutrality requirements and placed limits on funding to satellite and fixed wireless broadband projects.

The new policy notice removes those requirements and rescinds the states’ “final proposals” submitted under the former rules. States have 90 days to modify their proposals, and NTIA says it will review the modified submissions within 90 days after that.

Industry associations representing rural broadband providers in recent months have not dwelled on the specifics of issues such as DEI and climate change. Instead, they have urged speed to finish the process and begin distributing funds.

“These rural communities have waited long enough for next-generation broadband that will unlock massive economic opportunities, and they cannot afford more program delays,” said the CEOs of five rural associations, including NRECA’s Jim Matheson and NTCA’s Shirley Bloomfield, in a recent joint letter to President Trump. “The BEAD program was designed for the States to carry out, and the States should remain in the driver’s seat, empowered to use their expertise in determining the best broadband technology solutions for their residents.”

“These new guidelines will accelerate deployment and provide certainty to states, as we continue our work to connect every American to fast and reliable broadband,” said Representative Brett Guthrie (R-KY), chairman of the House Energy and Commerce Committee, in a press release.

Congressional Democrats since March have criticized the administration’s decision to overhaul BEAD. “Classic Republican hypocrisy: cutting and delaying promised funds in the name of efficiency. The broadband money we passed into law must go out ASAP to connect more Americans to fast and reliable internet,” said Energy and Commerce ranking member Frank Pallone (D-NJ) in an X post after today’s announcement.