House Commerce Committee Leaders Open Investigation into NTIA’s IIJA BEAD Funding Deployment, Citing Abnormal Lack of Transparency and Allegations of Rate Regulation

On July 9, Reps Cathy McMorris Rodgers (R-WA), Bob Latta (R-OH), and Morgan Griffith (R-VA) sent a letter to Assistant Secretary of Commerce and National Telecommunications and Information Administration (NTIA) Administrator Alan Davidson regarding concerns that NTIA is unlawfully pressuring states to rate regulate low-cost broadband plans required by the Broadband Equity, Access, and Deployment (BEAD) Program. “States have reported that the NTIA is directing them to set rates and conditioning approval of initial proposals on doing so. This undoubtedly constitutes rate regulation by the NTIA. Indeed, one state publicly posted the NTIA’s feedback that the agency would not approve their initial proposal without ’an exact price or formula’ for the state’s low-cost option. Without visibility into the approval process, Congress in unable to determine how widespread this practice is. When asked about this at oversight hearings, your responses have failed to provide clarity.”