Infrastructure Investment and Jobs Act

A common restaurant principle—“Accuracy over speed”—should guide our country’s broadband funding initiatives, particularly the $42.45 billion Broadband Equity Access and Deployment (BEAD) program, both now and in the future. Recently, the House Energy and Commerce Subcommittee on Communications and Technology held a hearing titled, “From Introduction to Implementation: A BEAD Program Progress Report,” and while some lines of questioning seemed to grasp at straws, there were important points that should be revisited in future hearings.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved Nebraska’s Initial Proposal for the Broadband Equity, Access, and Deployment (BEAD) program, a cornerstone of the Biden-Harris Administration’s “Internet for All” initiative. This approval enables Nebraska to request access to funding and begin implementation of the BEAD program. Nebraska was allocated over $405 million to deploy or upgrade high-speed Internet networks to ensure that everyone has access to reliable, affordable, high-speed Internet service.  

Few people dispute the vital importance of affordability in closing the digital divide.

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.

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).

In May 2022, the Government Accountability Office (GAO) published an oft-quoted report that described federal funding for broadband as a “fragmented, overlapping patchwork.” Despite more than 100 broadband-related programs investing millions of dollars into deployment, affordability, planning, digital skills, and connective devices, GAO found that “millions of Americans still lack broadband, and communities with limited resources may be most affected by fragmentation.” GAO asked the National Telecommunications and Information Administra

Internet service providers including Charter, Verizon and Comcast are shifting customers away from the Affordable Connectivity Program, an expired federal internet subsidy that helped low-income households pay for broadband. The $14.2 billion program, which went into effect in December 2021, served roughly