What Happened to Accelerated BEAD?

The BEAD road has been a long one. BEAD was first created by Congress in November 2021, meaning we’re now more than four years into the program. There are now a handful of BEAD projects under construction in a few states, but in most places, the BEAD grant program is still mired in the paperwork process that precedes releasing funds to ISPs.

To contrast BEAD with other large broadband programs, two large federal grant programs were approved by Congress in March 2021 as part of the American Rescue Plan Act of 2021 (ARPA). I estimate that the Coronavirus State and Local Recovery Fund (SLFRF) funded at least $9 billion in fiber projects. The Capital Project Funds (CPF) funded at least $11.5 billion in fiber projects. These programs were initiated only nine months before BEAD, yet the construction for awards for both programs must be completed by the end of this year.

That is blazingly faster than the BEAD timeline. BEAD proponents will rattle off a list of reasons why BEAD has taken so long, and I’ve even talked to some people who think the long BEAD timeline was intentional. A few States like Louisiana now have BEAD construction underway. But on the whole, there are still a lot of states that haven’t yet pulled the trigger.

In case you haven’t seen it, NTIA has a website that tracks the last major hurdles for each state to final federal approval. This website shows

  • Three states – California, Illinois, and Oklahoma – are still waiting for approval from NTIA for their Final Proposal that describes the BEAD grants they want to award.
  • 15 states and territories have NTIA final approval but are still waiting for NIST (National Institute of Standards and Technology) to approve the paperwork. NIST’s role is to make sure the grant paperwork is complete and meets the requirements of the original BEAD legislation.
  • 15 more states and territories have made it through NTIA and NIST approval, but still have not signed a contract with NTIA on the use of the BEAD funding. There is no way to know how much of this delay might be the typical delay from state and NTIA lawyers haggling over contracts versus states that are having disputes over contract requirements.
  • 23 states and territories have made it through all of these steps and are free to begin negotiating contracts with grant winners. I’ve heard from ISPs in some states that getting through the contract issue requires a lot of final paperwork and effort, but this seems to differ by state.

You might recall that before the election in 2024, Louisiana had made it through the BEAD process and was ready to start making grant awards. There were three or four other states that were very close behind.

When the new administration came in, one of the first things we heard from Howard Lutnick, the Secretary of Commerce, was that the BEAD process would be accelerated to put the grant funds to use. He was highly critical of the prior administration that hadn’t yet connected any households to broadband by the end of 2024. Everybody in the industry was hoping that NTIA was going to speed up the process.

However, the BEAD process went into a deep freeze while the NTIA decided what it wanted to do with the program. It took until June 6 last year before NTIA announced new Benefit of the Bargain rules. By then, almost all of the states had conducted BEAD grant application rounds and had identified potential winners. The Benefit of the Bargain required states to start over. It set a cap on the BEAD grant awards in every state, and many original potential winners dropped out of the grant process. We’re now back close to the same place the program would have been a year ago, with a number of states having BEAD winners. It’s pretty easy to argue that NTIA added nearly an additional year to the BEAD process. NTIA will say it was worth it since a lot less funding is being awarded. I’d bet the folks who will wait an extra year to see construction, or those who are now getting satellite instead of fiber, aren’t big fans of the extra delays.

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