Trump Administration Releases Revised BEAD Rules Requiring Do-Over for Some States

Commerce Secretary Howard Lutnick telegraphed many of the changes in testimony to the House Appropriations Commerce, Justice, Science and Related Agencies Subcommittee on Wednesday (see 2506050063). The satellite industry appeared to get some of the changes it wanted, despite the public fight between President Donald Trump and SpaceX CEO and former top adviser Elon Musk.

“Shelving the previous Administration’s unnecessary burdens, and opening access to all technology types, connects more Americans to broadband more quickly, and at a lower cost to the American taxpayer,” said Adam Cassady, acting NTIA administrator.

“To guarantee that American taxpayers obtain the greatest return on their broadband investment -- the Benefit of the Bargain -- NTIA finds that the full force of the competitive marketplace must be utilized,” the notice said. “Accordingly, NTIA rejects the Biden Administration’s imposition of technology preferences on Eligible Entities and instead adopts a technology neutral approach for the BEAD subgrantee selection process.”

NTIA cut what it describes as “non-statutory” requirements in the Biden-era plan, and changes reflect the broader Trump administration’s agenda, including on "cultural" issues. Those cover labor, employment and workforce development requirements; climate change requirements; net neutrality provisions; local coordination and stakeholder engagement mandates; and requirements for a middle-class affordability plan and low-cost service options.

“There is widespread agreement among states, lawmakers, and industry that the superfluous requirements imposed by the Biden Administration made the BEAD Program more complex and expensive, stifled competition, and led to reduced participation levels,” the notice said.

States will have to resubmit spending plans. “All states and territories can now begin implementing the Trump Administration’s reforms to make their programs more efficient and effective,” the notice said. All eligible entities “that have already completed subgrantee selection must conduct at least one Benefit of the Bargain round.” They have 90 days “to comply with the obligations outlined within this Policy Notice and submit a Final Proposal that reflects the results of the Benefit of the Bargain round.”

The Benton Institute for Broadband & Society slammed the revised BEAD program Friday. “Lutnick’s actions will cement the digital divide for decades,” said Policy Engagement Director Drew Garner. “He is hurting our economic competitiveness, our healthcare and education, and our ability to work and stay connected with loved ones. He is denying rural Americans access to the modern economy and our increasingly connected world.”

Former FCC Commissioner Michael Copps also criticized the plan. “It’s 2025, long after America should have been fully connected, and now this new crew wants to redesign deployment?" he said via email. "And watch out when these ideologues talk about reducing regulatory burdens. It’s a recipe for delay, delay, delay and possibly worse."

The notice “requires least cost everywhere, for all tech, which will dramatically reduce fiber and fixed wireless connections relative to satellite connections,” said former BEAD Director Evan Feinman in a post on X, calling the notice “not good.”

NCTA, on the other hand, said the updates "are welcome improvements that will make it easier for providers to build faster, especially in hard-to-reach communities, without being bogged down by red tape.” Delivering universal connectivity “is a national priority, and these reforms move us closer to achieving that mission.”

Hill Divided

House Commerce Committee Chairman Brett Guthrie, R-Ky., and Communications Subcommittee Chairman Richard Hudson, R-N.C., wrote Trump ahead of the notice's release that once "BEAD is reformed, we ask that you act swiftly to release these funds to the states so they can begin deployment."

House Commerce ranking member Frank Pallone, D-N.J., said the Trump administration's “proposed changes to the BEAD program will only further delay getting much-needed funding out the door to connect communities to broadband." Communications ranking member Doris Matsui, D-Calif., raised similar concerns and called the delay "unacceptable." The "new changes undo the states’ hard work, punt the broadband deployment timeline further down the line, and ultimately, drive up costs for consumers," she said in a statement

In a release, Public Knowledge Government Affairs Policy Advocate Nat Purser said that “today’s decision fundamentally undermines the intent of the BEAD program and risks wasting a once-in-a-generation opportunity to build robust, future-proof broadband infrastructure for everyone.” The plan would divert funding to cheaper but inferior technologies like low-earth orbit satellite service, she said. “The Commerce Department is wasting public dollars on services that cannot deliver what communities need.”

A spokesperson for ACA Connects said the trade group fully supports "the Administration's goal of using this historic funding to effectively deliver reliable, scalable and affordable high-speed internet to unserved and remote locations," and the notice adopts ACA recommendations on lifting "costly" federal mandates.

In a June 3 letter to Lutnick, the Western Governors’ Association called on NTIA to give states more flexibility in implementing BEAD. Led by New Mexico Gov. Michelle Lujan Grisham (D) and Utah Gov. Spencer Cox (R), the letter highlighted concerns that changes to federal guidelines could delay broadband rollouts by up to a year, especially in Western states already deep into their planning. The governors urged NTIA to give states the option to stick with the original plans or adopt the new guidance.

The letter also stressed the high costs of deploying broadband in the West due to remote terrain and scattered populations. It urged NTIA to let states define “high-cost” areas and prioritize long-term, scalable infrastructure that meets future demand. Close collaboration with state broadband offices is key to ensuring every household gains access to affordable, reliable internet, the governors group said, asking NTIA to keep open communication channels as the program advances. NTIA's policy notice eliminated the original funding notice's requirements regarding local coordination and stakeholder engagement, saying the provisions "only served to delay plan submissions and contribute to the current lack of broadband deployment in the BEAD program."