Federal

Blair Levin, non-resident senior fellow with The Brookings Institution, has some opinions about the Broadband Equity, Access and Deployment (BEAD) program. He thinks it’s being run a lot better than the Rural Digital Opportunity Fund (RDOF). Levin recently testified at a House subcommittee hearing where Republican Congresspeople tried to slam the BEAD program. He contrasted BEAD with the RDOF program, which set up a reverse auction to award broadband grants under the former Republican Federal Communications Commission Chairman Ajit Pai.

The Broadband Equity, Access, and Deployment (BEAD) Program—established by Congress in the Infrastructure Investment and Jobs Act—gives priority to projects that will result in broadband internet access service being offered in areas where service wasn't available before. Given that federal funds will provide roughly 75 percent of the costs to deploy these networks,¹ the chances that competing networks will be built at any time in the foreseeable future are very slim.

The Federal Communications Commission announced a $13 million settlement with AT&T to resolve an Enforcement Bureau investigation into the company’s supply chain integrity and whether it failed to protect the information of AT&T customers in connection with a data breach of a vendor’s cloud environment. AT&T used the vendor to generate and host personalized video content, including billing and marketing videos, for AT&T customers.

The Federal Communications Commission announced the opening of the application window for the Schools and Libraries Cybersecurity Pilot Program. During the 45-day application filing window, which will run from September 17, 2024 to November 1, 2024, eligible schools and libraries can apply to participate in the three-year, $200 million pilot program.

Gov Kay Ivey (R-AL) has awarded nearly $42 million for “last-mile” high-speed internet projects in 23 Alabama counties. The latest Capital Projects Fund grants will cover 2,347 miles and provide broadband availability to more than 15,000 households, businesses and community anchor institutions in the state that currently do not have access to high-speed internet. In February 2024, Governor Ivey awarded $148.3 million in Capital Projects Fund grants for broadband accessibility in more than two-thirds of the state’s 67 counties. The grants awarded today are from the remaining funds.

Top officials from the Department of Homeland Security, Department of Justice, the National Economic Council, and private industry all dropped by downtown Washington for the POLITICO AI & Tech Summit on September 17. And with the first presidential election of the generative AI era a mere seven weeks away, much of their attention was turned to ensuring its security and trustworthiness. Sen. Mike Rounds (R-SD) described how artificial intelligence demands a response from each sector of government.

Two recent Supreme Court decisions produced sweeping changes to how regulation works in the United States, shifting power from agencies to the courts. Investment will now take place against the backdrop of the “judicial veto,” where a wide range of potential litigants and sympathetic judges will decide which regulations actually go into effect, and when. According to conventional wisdom, scaling back the regulatory state will help businesses. However, the court’s rulings will suppress business investment in three unintended ways.

A few years ago, an assessment of Alaska’s broadband needs suggested an investment of nearly $2 billion would be needed to bring high-speed connections to everyone in the nation’s largest state. The National Telecommunications and Information Association (NTIA) awarded Alaska just over $1 billion in Broadband Equity, Access, and Deployment (BEAD) Program funds.

Per the most recent American Community Survey data, among cities with 100,000 or more households, the two worst-connected cities, Detroit (MI) and Cleveland (OH), have also had the biggest percentage reductions in households without wireline broadband connections since 2019. Detroit added more than 41,000 households with cable, fiber or DSL subscriptions between 2019 and 2023, even while its total household count shrank by about 12,000; this took the city’s percentage of households without wireline from 46.3% down to 32.2%.

Pretty much everybody in the industry agrees that the Broadband Equity, Access, and Deployment (BEAD) grant process has taken too long. The Infrastructure Investment and Jobs Act legislation that authorized BEAD was signed into law in November 2021. A few states are now opening a grant portal to accept BEAD grant applications—nearly three years after the legislation was passed. Not all grant programs have taken this long. An interesting contrast to BEAD is another huge-dollar federal grant program, the Capital Project Fund (CPF).