115 state legislators pen letter to Commerce Dept. with concerns over proposed changes to BEAD program

A bipartisan group of 115 state legislators representing 28 states sent Commerce Secretary Howard Lutnick a letter Thursday with several concerns about his proposed changes to the department’s $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program.

Lutnick’s proposed changes to the program, which he announced earlier this month, include “ripping out” several “pointless requirements” attached to it by former President Joe Biden, who created the program as part of his “Internet for All” and Infrastructure Investment and Jobs Act of 2021. The changes, he said, would remove “woke mandates, favoritism towards certain technologies, and burdensome regulations” from the program.

In the letter organized by the Benton Institute for Broadband & Society, the state legislators pointed particularly at one of Lutnick’s proposals that would undo the program’s preference for the installation of fiber-optic cable — except for in situations where fiber is more costly to install. This change would allow states to give more of their BEAD award allotment to low-earth orbit satellite service providers, such as Elon Musk’s Starlink.

These changes, the legislators said in the letter, could delay the deployment of internet connectivity infrastructure funded by BEAD by a year or more, or in some cases, force states to restart their broadband grant programs. The letter notes that the three states that have completed their BEAD planning have different provider make-ups, showcasing the BEAD program’s flexibility. Louisiana achieved 95% fiber coverage, 3% wireless/cable, and 2% satellite; Nevada achieved 83% fiber coverage, 7% wireless/cable, and 9% satellite; and Delaware achieved 100% fiber coverage.

“These are incredible results, and the flexibility to prioritize fiber while still incorporating wireless and satellite technologies will bring our constituents high-quality, affordable service at reasonable costs,” the letter said.

I addition to Lutnick, the letter is addressed to members of Congress; Adam Cassady, principal deputy assistant secretary and deputy administrator of the National Telecommunications and Information Administration, which administers several broadband programs; and Arielle Roth, President Donald Trump’s nominee to lead the NTIA.

It comes as federal lawmakers are weighing measures to legally reform the program, with Rep. Richard Hudson, R-N.C., earlier this month introducing legislation called the Streamlining Program Efficiency and Expanding Deployment for BEAD, or “SPEED for BEAD” Act. Similar to Lutnick’s proposal, the bill would remove the preference for fiber so any “reliable broadband service” provider that meets the law’s performance criteria would be eligible to compete for projects.

While some changes to the program would be welcome — as evidenced by a letter Louisiana Gov. Jeff Landry sent also sent Lutnick in January asking for any program reforms to include easier paths for states to spend BEAD broadband grant money on satellite internet service — the legislators asked that any changes be optional for states, especially considering that some are already undertaking some BEAD-funded projects.

“As state legislators, we understand that no program is perfect. Indeed, we welcome some changes. However, we ask that you defer to our states about which changes we adopt,” the letter said. “State BEAD and DE [Digital Equity] programs have been designed by and for state stakeholders, and they are poised to bring high-speed, reliable, affordable, and scalable broadband to virtually every last one of our constituents. Please respect the results of this process.”

“At this late stage, major changes would undermine our work and delay deployment by years,” the letter continued. “The health, safety, education, and economic success of our communities depend on these programs. We ask that you tread cautiously when changing them.”