FBA to OMB: New grant rules create 'real risk for broadband deployment'

The Fiber Broadband Association is pushing back on certain potential changes to how federal grants are administered, which were proposed by the Office of Management and Budget in late May. In comments filed to the OMB, FBA said while it "supports the Office of Management and Budget's efforts to modernize and streamline these rules, today's comments flag several provisions that could create real risk for broadband deployment." The trade group's comments come in response to OMB's proposal, issued on May 29, to revise the Guidance for Federal Financial Assistance. That proposal, which was open for public comment through Monday, July 13, has raised alarm among broadband advocates and other groups. FBA specifically pushed back on the proposed elimination of fixed amount awards and the expanded discretionary authority to terminate awards. "Both changes will add compliance burdens, discourage participation from small-and mid-sized broadband providers, and inject uncertainty into ongoing investments — including BEAD," said FBA in its filing. On OMB's proposal to eliminate fixed amount awards and sub-awards, FBA argued that it "will discourage communications providers from filing grant applications, thereby lessening competition and raising bids." The filing noted that this would also impact BEAD recipients, stating that many awards through BEAD are used to "reduce administrative burdens for grantees while tying reimbursement to verifiable, physical infrastructure deployment." FBA noted that, because deployment projects require "large upfront capital expenditures," awardees need "certainty" that their government funds are available.