Congress and Commerce Department Begin Major BEAD Overhaul

Almost simultaneously today, newly installed Commerce Secretary Howard Lutnick and House Communications and Technology Subcommittee Chairman Richard Hudson (R-NC, pictured above) announced initiatives to change the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. Both complained that that more than three years have passed since Congress passed BEAD as part of the Infrastructure Investment and Jobs (II&J) Act, yet the program has yet to connect a single rural home.

Both men put blame on the program’s past management by the National Telecommunications and Information Administration (NTIA). “The [Commerce] Department is ripping out the Biden Administration’s pointless requirements.  It is revamping the BEAD program to take a tech-neutral approach that is rigorously driven by outcomes, so states can provide internet access for the lowest cost,” Lutnick said in a statement announcing a “rigorous review” of the program.

Minutes after the Lutnick statement, Hudson opened a Communications and Technology hearing saying that he had introduced the SPEED for BEAD Act. “Specifically, this bill would eliminate the unnecessary and expensive regulations NTIA imposed, further clarify that rate regulation by NTIA or any other entity is prohibited, ensure that the program is run on a technology-neutral basis, and more efficiently use tax dollars by ensuring that awards to providers are cost effective and that funds are only used for deployment,” Hudson said.

Hudson immediately posted a list of rural telecommunications industry associations supporting the legislation.

“NTCA has long believed that the BEAD program can play a critical part in the broader mission of universal service,” said Shirley Bloomfield, CEO of NTCA – The Rural Broadband Association. “We look forward to working with the administration, members of Congress, and other stakeholders to deliver on the promise of this program now and well into the future for the benefit of every American.”

USTelecom President and CEO Jonathan Spalter said the bill offers “commonsense updates.”  ACA Connects President and CEO Grant Spellmeyer supported the bill’s goal to “streamline unnecessary requirements that are slowing deployment down.”Other associations adding their support include the Fiber Broadband Association, INCOMPAS, WISPA – the Association for Broadband Without Boundaries, and NCTA – The Internet & Television Association.

NRECA did not appear on the list of SPEED for BEAD supporters. However, NRECA CEO Jim Matheson recently sent a letter to Lutnick describing how NTIA’s earlier management of BEAD has “disincentivized small, rural providers from participating.” Matheson also offered suggestions for improving the program, which match Lutnick and Hudson positions.

NTIA under the Biden Administration included numerous requirements for states to accept before releasing funds, in including Diversity, Equity and Inclusion rules, climate changes rules and others. Some of the rules were not mandated by the II&J Act. Louisiana recently was the first state to gain NTIA approval of its compliance plans. It is unclear how long it will take to refashion those rules and whether changing the program now will result in a net increase in the delay. However, some say that changes will be needed before many rural broadband providers are willing to participate in BEAD.

There could be points of contention over the “technology-neutral” provisions of a future new policy. While NTIA in recent months has loosened limitations on satellite and fixed wireless deployments under BEAD, it has maintained a priority on fiber networks. Some of the associations backing SPEED for BEAD have also supported fiber priority.