Trump’s Broadband Overhaul Puts $21B in State Grants at Risk
▼ Summary
– A Senate Republican has drafted legislation to cut a $42 billion broadband deployment program by redirecting leftover funds to the Treasury for deficit reduction.
– The bill would change current law that allows unused broadband funds to be used for other purposes like Wi-Fi and devices, instead requiring the money to go to deficit reduction.
– The legislation complements the Trump administration’s overhaul of the BEAD program, which reduced projected spending and shifted some funds from fiber to satellite projects.
– The draft bill was leaked and published by the Benton Institute, though it hasn’t been formally filed yet, and could escalate conflicts between the government and states over program downsizing.
– Current law encourages spending the full $42 billion allocation, but the proposed change would only give states funds designated for specific purposes in their final proposals.
A significant legislative proposal could drastically reduce the scope of a major federal broadband initiative, potentially placing over $21 billion in state grants at risk. This development follows the Trump administration’s recent overhaul of the Broadband Equity, Access, and Deployment (BEAD) program, which originally allocated $42.45 billion to expand high-speed internet access nationwide. The administration’s changes required states to revise their grant proposals, lowering overall projected expenditures and shifting some funding away from fiber-optic infrastructure toward satellite-based solutions.
As a consequence of these revisions, more than half of the program’s total funding, exceeding $21 billion, is now expected to remain unspent after supporting approved broadband expansion projects. Under current law, leftover funds not used for physical deployment can still be directed toward other connectivity efforts, such as providing Wi-Fi hotspots or internet-capable devices to residents. However, a new draft bill prepared by Senator Joni Ernst, a Republican from Iowa, seeks to alter that provision entirely.
Ernst’s proposed legislation would eliminate the existing rule and instead require that any unallocated BEAD money be returned to the U.S. Treasury, where it would be used exclusively for reducing the federal deficit. While the senator has not yet formally introduced the bill, a draft version was recently disclosed and published by the Benton Institute for Broadband & Society. Inquiries have been made to Ernst’s office regarding the proposal, and updates will follow should a response be received.
This move is anticipated to intensify an ongoing dispute between federal authorities and state governments concerning the scaled-back implementation of a program originally intended to deliver reliable broadband to every unserved household in the United States. Louisiana Governor Jeff Landry, also a Republican, had previously advocated for the Trump administration to allow states to retain any unused BEAD funds for local broadband needs.
The BEAD program was established under 2021 federal legislation, which explicitly encouraged the full utilization of the $42 billion allocation. According to the law, once a state’s deployment plan receives approval, the National Telecommunications and Information Administration (NTIA) must release the remaining grant funds to the eligible state or territory. Ernst’s bill would strike that requirement, substituting language that permits states to receive only those funds specifically designated in their final plans, with any leftover amount being sent to the Treasury for deficit reduction.
(Source: Ars Technica)
