As billions in federal funding await allocation to boost rural broadband, states remain in limbo, craving specific guidance on how to proceed. The Broadband Equity Access and Deployment (BEAD) Program, backed by the largest federal broadband investment in history, aims to deliver high-speed internet to remote areas. However, states are yet to receive instructions on utilizing these funds.
Congress allocated approximately $42 billion for BEAD in 2023 through the Infrastructure Investment and Jobs Act. Yet, project proposals required adjustments due to the Trump administration’s revised rules, which aimed to cut costs but sparked concerns over long-term connectivity.
In March, the National Telecommunications and Information Administration (NTIA) reported that the new rules led to cost reductions, leaving about $21 billion in unallocated funds. Despite this, states are still unclear on how to use the funds.
“To date, they’ve missed a number of deadlines that they had previously given themselves to release that guidance,” stated Drew Garner, policy engagement director at the Benton Institute of Broadband and Society. The funds are intended for non-infrastructure needs, such as digital skills training, but Garner noted that no specific timeline for instructions has been provided.
The NTIA recently approved all final project proposals, allowing states to begin infrastructure work. However, without guidance, leftover funds remain unspent. The Western Governors’ Association, including representatives from Texas, Oklahoma, Kansas, Nebraska, and South Dakota, urged federal officials to clarify fund usage in a letter to U.S. Commerce Secretary Howard Lutnick. In response to Senator Deb Fischer of Nebraska, Lutnick indicated that guidance would be shared within two months, yet no updates have emerged as of late August.
“These non-deployment funds will just sort of allow us to get the best return on investment out of our broadband networks, whether BEAD or otherwise,” Garner explained. “It’s sort of like the gas in the tank of the BEAD program.”
Challenges and Opportunities
Federal data indicates that about 1 in 5 rural residents and a quarter of tribal lands lack broadband access. Michigan, for instance, received around $1.5 billion through BEAD, with $1 billion earmarked for infrastructure at 200,000 locations, leaving over half a billion dollars awaiting use.
Eric Frederick, Michigan’s chief connectivity officer, emphasized that the program goes beyond infrastructure, addressing issues such as affordability, digital skills, and AI literacy. “Not having guidance or knowing when the dollars will be released means his office can’t plan ahead,” Frederick stated.
Despite easing regulatory burdens through the “Benefit of the Bargain Round,” challenges remain. Frederick remains committed to connecting communities, describing the funding as “a once in a lifetime opportunity” that must not be squandered.
Some states have already utilized federal funds from programs like the American Rescue Plan Act to enhance internet connectivity. In Missouri, BJ Tanksley, director of the Office of Broadband Development, noted that agreements with providers have been executed to serve over 200,000 locations lacking quality service. Missouri has more than $900 million remaining, awaiting specific guidance.
In Minnesota, Bree Maki, executive director of the state’s Office of Broadband Development, is similarly waiting for directives on spending approximately $270 million, part of the $652 million received through BEAD. Maki is also uncertain about how an executive order on artificial intelligence, signed by President Donald Trump, might impact access to these funds.
Despite frustrations with the BEAD process, Maki and her team remain motivated by the potential to connect even one more person to reliable broadband. Minnesota is pursuing other broadband initiatives, confident in their progress.
This article was produced in collaboration with Harvest Public Media, a collective of public media newsrooms in the Midwest and Great Plains focusing on food systems, agriculture, and rural issues.
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