The New Administration and BEAD

I’ve been peppered with questions about the impact of the change of administration on the Broadband Equity, Access, and Deployment (BEAD) grant program. I don’t have any better crystal ball than anybody else. But it’s not hard to speculate on the kinds of changes that might come. Some possible paths for BEAD:

• More BEAD for Satellite Broadband: With Elon Musk being part of the administration, it seems inevitable that satellite broadband will get a bigger piece of the BEAD pie. Recall that the National Telecommunications and Information Administration (NTIA) had already opened the door to Starlink in BEAD, but the process was voluntary for states.
• Changing the BEAD Rules: A group of Senators have been complaining about BEAD rules for more than a year. There are two paths I can foresee for changing some rules. The first is to put the program on hold to incorporate any rule changes. The other option would be to tell ISPs about pending changes and to deal with them when BEAD grant contracts are negotiated.
• Spend the Money Faster: One of the current criticisms about BEAD I keep hearing is that money won’t flow until late 2025. That is due to an NTIA requirement that a State must find a solution for every location before any grants can be awarded. Get rid of that rule and grants could be awarded and money could start flowing in the first quarter.
• Cut the Size of the Program: I’ve seen some speculation about clawing back BEAD funding – which means not making the grant awards and keeping the money in the federal coffers. Industry insiders think broadband is too important for this to happen. However, if there is a big political movement to undo President Biden’s signature accomplishment, then infrastructure spending of all types could be curtailed, and it’s naïve to think that broadband spending couldn’t get swept into a bigger effort to cut spending.
• Do Nothing: There is always a chance that no changes will be made to BEAD and it will play its course this year. But this seems unlikely with $42 billion in spending dangling for the taking. At the end of the day, any changes to be BEAD will be about who gets the money.