Infrastructure Investment and Jobs Act

This white paper ultimately represents the story of how our newly formed office found an efficient and effective way to address the digital divide in our community through the development of a novel local benefit program, as told by our associate Augusta Groeschel-Johnson.

From all over the country, I’m hearing stories about internet service providers who are gaming the Federal Communications Commission (FCC) broadband maps in order to block areas from being eligible for the BEAD grants. It’s relatively easy for a provider to do this. All that’s needed is to declare the capability to deliver a speed of 100/20 Mbps in the FCC maps. Providers can largely do this with impunity. The archaic FCC rules allow providers to claim ‘up-to’ marketing speeds in the maps.

At least 13 states intend to undertake “nondeployment” projects as part of their funding under the $42.5-billion BEAD program, according to their initial proposals. The number of states that expect money left over after allocating funds for all unserved and underserved locations could be higher, and perhaps considerably so.

Elaina Zempel, manager of the Wyoming broadband office, laments that the office didn’t have more funds to distribute in its recent Capital Projects Fund (CPF) program, which awarded funding to network operators to cover some of the costs of deploying broadband to 15,000 unserved and underserved locations. Fortunately, NTIA allocated $347.9 million in rural broadband funding to Wyoming for the BEAD rural broadband funding program, so there is still an opportunity to fund many of the failed requests from Wyoming’s 

The Federal Communications Commission formally notified Affordable Connectivity Program (ACP) providers that, due to a lack of additional funding from Congress, the agency will only be able to fully fund the program through the month of April. The Public Notice also (1) provides guidance on the May 2024 partial reimbursement month; (2) reminds participating providers of the notices they must send to ACP households; and (3) provides guidance on the consumer protections for ACP households during wind-down and after the ACP ends.

From an internet service provider perspective, the BEAD grant program has progressed at a glacial scale. The BEAD grants were signed into law on November 15, 2021, as part of the Infrastructure Investment and Jobs Act. Folks in the industry assumed that BEAD would follow a timeline similar to the earlier grants that were awarded using federal CARES and ARPA funding, and vendors certainly thought that grant awards would start in 2023 with construction underway by 2024. And then nothing happened. The BEAD process got bogged down in paperwork and bureaucracy.

The thinking behind the $42.5 billion BEAD rural funding program was that individual states were better positioned than the federal government to understand their local needs and tailor state-level rules accordingly, and we are seeing a lot of variation from state to state. A case in point: Two Midwestern states—Minnesota and Missouri—have mapped out two somewhat different paths for administering the BEAD program.

23,269,550. This was the number of households participating in the Affordable Connectivity Program (ACP) when enrollment closed on February 8th, 2024. It is more than one out of every six households in the United States. But 23,269,550 is also a very high precipice from which to fall. If the ACP ends, all enrollees will experience some combination of bill shock, disconnections, financial sacrifice, service downgrades, and/or household debt.

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted West Virginia’s Digital Equity plan. Using $728,065 from the State Digital Equity Planning Grant Program, West Virginia created a plan aimed at addressing disparities in digital access, skills and affordability across the state. States are continuing to submit their plans for NTIA’s acceptance, and NTIA will accept plans on a rolling basis. In the coming months, NTIA will launch the $1.44 billion Digital Equity Capacity Grant Program. Key objectives include:

The Department of Commerce’s National Telecommunications and Information Administration (NTIA) has accepted Idaho’s Digital Equity Plan. Using $564,706 from the State Digital Equity Planning Grant Program, Idaho created a plan aimed at addressing disparities in digital access, skills and affordability across the state. States are continuing to submit their plans for NTIA’s acceptance, and NTIA will accept plans on a rolling basis.