State

A large majority of internet service providers seeking BEAD grants will be financing matching funds using loans. Matching funds are the contributions expected from providers—a 75 percent grant means 25 percent in matching funds. Very few providers carry enough cash on hand to consider using equity to pay for broadband expansion. This contrasts significantly with large telephone and cable companies that will be pursuing BEAD grants, most of whom will finance grants using equity. When it comes to financing using equity vs using loans, equity is the clear winner for the provider.

As part of a growing effort to stop prison telecommunications monopolies from charging exorbitant fees for calls between prisoners and their families, in 2023 Minnesota became one of the first states to make all phone calls free for prisoners.

Lieutenant Governor Garlin Gilchrist II (D-MI) and the Michigan High-Speed Internet Office (MIHI) announced that the Biden Administration has approved Michigan’s proposed State Challenge Process, which will give Michiganders an opportunity to help identify locations across the state that are eligible for high-speed internet infrastructure expansion through the Broadband Equity, Access, and Deployment (BEAD) program.

States and the federal government may agree that the expansion of broadband service around the country funded with $42.5 billion from the infrastructure act should be affordable for low-income people. But at least one state doesn’t agree that it should be dictating what’s affordable. After reviewing Virginia’s plan for its Broadband Equity, Access and Deployment funding, the National Telecommunications and Information Administration told the state it needed to be more specific.

Brian Newby, broadband program director for the state of North Dakota, joined the state's broadband office as it was in the process of being created in early 2023. Since then, his primary focus has been on developing the state's Broadband Equity Access and Deployment (BEAD) program.

While Indiana continues to battle the digital divide–the gap between those who have and don’t have broadband access–there are significant signs of progress. State and federal funds totaling nearly $1.5 billion are being deployed to help connect the estimated 150,000 unserved or underserved Hoosier addresses. Private sector companies are also getting engaged, including AT&T, which is in the midst of fiber projects in 12 Indiana communities and regions, and it’s all part of what some are calling a once in a generation opportunity.

The Maine Connectivity Resource Exchange is Maine Connectivity Authority's home to resources and knowledge to support, enable, and empower municipal and Tribal governments, nonprofit organizations, subgrantees, and the public on all aspects of the broadband ecosystem in Maine. The first module is in support of the upcoming BEAD State-Led Challenge Process. This module contains 7 units that will work to guide our partners through this several months-long process.

Governor Tim Walz (D-MN) announced over $50 million in grants to expand broadband access to an estimated 8,900 homes and businesses throughout Minnesota. Twenty four broadband expansion projects will receive grants from the Department of Employment and Economic Development's (DEED) Office of Broadband Development, helping deploy new broadband infrastructure around Minnesota.

California's Broadband Loan Loss Reserve Fund is a $500 million fund that provides a credit enhancement related to the financing of local broadband infrastructure development. The reserve fund expands the ability of local governments, tribes and non-profits to secure financing for building last-mile projects, with an emphasis on public broadband networks. The Fund will provide collateral to local governments to enable more favorable borrowing rates and terms for bonds issued to deploy broadband infrastructure. The Fund was established in 2021. The benefits of the Fund include:

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.