Texas Comptroller: Cruz Should Nix BEAD's Low-Cost Option, 'Nonessential' Rules

Cruz said in November that the 119th Congress would review the program and requirements that have drawn GOP ire (see 2411220035). Hegar said in a letter to Cruz last week that his recommendations would collectively help the Texas Broadband Development Office better roll out its $3.3 billion BEAD allocation after an “unnecessarily protracted” NTIA approval process. Hegar believes “certain ‘nonessential’ requirements exceed the program's original intent and unnecessarily complicate its implementation.” The low-cost option “requirement is viewed as running counter to [the 2021 Infrastructure Investment and Jobs Act’s] legislative mandate against rate regulation,” Hegar told Cruz. “Removing this requirement may increase overall provider participation and support efficient deployment of funds.” It “would also reduce the administrative burden placed on [state broadband offices] to identify ‘eligible households’ and monitor subgrantee’s compliance with the requirement.” He also proposed that the federal government jettison other NTIA rules that congressional Republicans have criticized, including ordering that grantees adhere to prevailing wage requirements and “unnecessary” cybersecurity and workforce regulations. Hegar urged lawmakers “loosen or eliminate” requirements that BEAD projects go through National Environmental Policy Act and National Historic Preservation Act reviews. He also said Congress should “relax or eliminate guidelines regarding deployment of alternative technology in additional hard-to-reach areas.”