Illustration: Natalie Peeples/Axios
Billions of dollars' worth of grants to expand internet access hang in the balance as states grapple with new rules and the Hill uses the funds as a bargaining chip.
Why it matters: The $42.5 billion Biden-era Broadband Equity, Access, and Deployment Program aims to connect all Americans to the internet.
- But it's come under fire from Republicans who claim the money is not being deployed fast enough, despite public and private sector players adhering to the timelines Congress agreed to.
State of play: The Trump administration recently overhauled the program and internet service providers have to re-bid, further delaying connecting homes.
- Instead of the previous administration's fiber preference, the Trump administration is implementing a tech-neutral approach.
Former BEAD director Evan Feinman, citing conversations with broadband offices across the country, said "they're all incredibly disappointed, red and blue."
- "There's not a single state broadband office that thinks this is good," said Feinman, pointing to projects being further delayed.
- "We were going to be building in half of the country by this summer. Now, best case scenario, we'll be building in a couple of places in January of next year."
The other side: Acting NTIA administrator Adam Cassady said the changes to the program will allow it to "focus on what Congress intended: broadband deployment."
- "Shelving the previous Administration's unnecessary burdens, and opening access to all technology types, connects more Americans to broadband more quickly, and at a lower cost to the American taxpayer."
Zoom in: Dylan Frick, deputy secretary for external affairs at the North Carolina Department of Information Technology, said his team is reviewing the rule changes but expressed confidence that they will "still be able to deliver high speed internet to as many rural North Carolinians as possible."
Zoom out: On top of the rule changes, the BEAD program is being used on Capitol Hill to make the 10-year AI moratorium fit into the GOP reconciliation bill.
- Sen. Mike Rounds, whose state of South Dakota requested more than $207 million in BEAD funds, said states should not try to regulate AI.
- "It's very simple, you simply don't try to regulate AI development in your state and then you don't have any problem" with BEAD funds, Rounds said.
- South Dakota has enacted laws to combat deepfakes in elections and child pornography.
"What we have to do is to make sure that we have a consistent message across the entire United States," Rounds added, acknowledging that "states are acting because there is a void of action on the part of Congress."
- Frick said the language in the budget bill needs to be tightened to allow states like North Carolina to continue AI work and "still regulate against bad actors" while they wait for federal action.
Winners: The wireless industry lauded the Trump administration's changes, saying they will make the program roll out faster and more cost-effective.
Losers: Consumer advocacy groups denounced the new rules as prioritizing cost over quality, which they say will result in slower, more expensive service for Americans.
