How the FCC’s CAF II Program Became a Money Sink

In the months before President Joe Biden signed the historic infrastructure law on November 15, 2021, Republicans and Democrats wrangled over how much to spend on broadband. Democratic lawmakers sought $100 billion, while their Republican counterparts countered with $65 billion. The final score was $65 billion, with $42.5 billion of that earmarked for infrastructure in the Broadband Equity, Access and Deployment (BEAD) Program. Crucially, the BEAD Program adopted a new definition of what adequate broadband would look like: 100 Megabits per second download and 20 Megabits per second upload. It turns out, that speed threshold is serving as a key reason why money from BEAD and other programs will be used to cover already-subsidized projects under an older Federal Communications Commission program that has only recently completed some broadband builds using older technology. Broadband Breakfast has analyzed the data and spoke with experts and former FCC officials about the pitfalls and problems with the Connect America Fund Phase II, or CAF II, a $10 billion funding program that started in 2014.