More Delays? US Broadband Funding Hits Potential Snag Over Procedural Error

More Delays? US Broadband Funding Hits Potential Snag Over Procedural Error

A $42.5 billion program to expand high-speed internet in the US is facing new uncertainty after a government watchdog found that the Trump administration improperly overhauled it in June. 

The Broadband Equity Access and Deployment (BEAD) program had cleared its last hurdles, and was beginning to distribute funds to states to help build fiber networks and pay for satellite services. But on Tuesday, the US Government Accountability Office (GAO) issued a ruling that could open the program to new delays and even lawsuits. 

The GAO found that the Trump administration’s controversial changes to the BEAD program were substantial enough to require a Congressional review before they took effect. However, the agency in charge, the National Telecommunications and Information Administration (NTIA) within the Commerce Department, never sent a notice to Congress. Instead it cleared the reforms itself, and required all US states and territories to re-submit their BEAD proposals. Since then, over half of the proposals have been approved

The GAO ruling has prompted the nonprofit Benton Institute for Broadband and Society to urge Congress to intervene. “As GAO’s analysis clearly shows, the June 6th policy notice that dramatically changed the BEAD Program can not take effect without Congressional review,” the group’s executive director, Revati Prasad, said in a statement. 

The Trump reforms included prioritizing lower-cost options and opening more funding to satellite internet services, including SpaceX’s Starlink and Amazon’s Leo, potentially taking it away from faster, but more expensive fiber installations. 

The GAO told PCMag its role isn’t to enforce the ruling. Still, the office took up the matter on a request from Sen. Michael Bennet (D-Colo.). Last month, a group of three other Democratic lawmakers called out the Trump administration’s June reforms, claiming the changes violate the original intent of the funding. “Rural communities were especially poised to finally receive the same future-proof infrastructure that today connects urban centers and densely populated suburbs,” the lawmakers wrote to the NTIA.

One major question is whether Democrats will use the GAO ruling to try and invalidate the Trump administration’s reforms to BEAD through a special procedure under the Congressional Review Act. The Democratic lawmakers didn’t immediately respond to a request for comment.

Another issue is whether internet service providers will leverage the GAO ruling to file lawsuits because they were on track to receive a larger share of BEAD funding before the Trump administration changed the program. Currently, SpaceX and Amazon are slated to receive close to $1 billion collectively to serve close to 900,000 locations in the BEAD program, or about 22.5%. Fiber has been allocated to about 63% of the locations.

graph of bead allocation by tech

(Credit: Wes Robinson)

In the meantime, broadband experts are concerned that the BEAD program, which started in 2022 as part of former President Biden’s Infrastructure Investment and Jobs Act, will face even more delays and turmoil.

“[State broadband offices] are ready to jump out of a window at this point,” Kansas’s former director for the office of broadband development, Jade Piros de Carvalho, posted on LinkedIn.

The Commerce Department and NTIA didn’t immediately respond to a request for comment. Meanwhile, Indiana’s broadband office told PCMag: “We will, of course, comply with all federal requirements. Beyond that, we don’t have additional comments at this time.”

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  • Gaby Souza é criador do MdroidTech, especialista em tecnologia, aplicativos, jogos e tendências do mundo digital. Com anos de experiência testando dispositivos e softwares, compartilha análises, tutoriais e notícias para ajudar usuários a aproveitarem ao máximo seus aparelhos. Apaixonado por inovação, mantém o compromisso de entregar conteúdo original, confiável e fácil de entender