Will Some States Not Accept Broadband Funding?

The upcoming Broadband Equity, Access, and Deployment (BEAD) Program grants bring a huge once-in-a-generation grant to states to solve the digital divide and build broadband infrastructure. The average state will get over $800 million dollars, with the exact amount per state still to be determined. It seems almost too absurd to imagine for communities with poor broadband, but there are some states that may end up not getting this funding. There is proposed legislation in Illinois (SB 3683) from State Sen Patrick Joyce (D-IL) that would probably stop the National Telecommunications and Information Administration (NTIA) from agreeing to give the funding to the state. The law is contrary to almost every key position taken by the federal legislation that approved the BEAD Program. Illinois is not the only state facing this problem; there is new proposed legislation in New York (S 8008 B) which could be a problem. Other states, including North Carolina, have existing prohibitions against local government funding and building broadband infrastructure. North Carolina and other similar states will have to make a legislative exception to current state rules to be eligible for the BEAD grant funding. It will not be surprising to see some legislatures decide that sticking with existing state laws is more important than getting the grant funding. I’ve been advising communities to get active and to make sure you know where your state stands in the ability to receive the BEAD grant funds. I believe that funding of the magnitude we are seeing now may not come along for another decade, if ever. A future Congress might not be sympathetic about providing broadband funding to states that turned it down this year.

[Doug Dawson is President of CCG Consulting.]