After four years and many obstacles, 'Internet for All' is unlikely to reach every American

BEAD may not be able to live up to its 'Internet for All' promise.
 (Photo by Jay Heike, Unsplash)

After years of planning and delays, most states have accessed at least a portion of their federal grant funding from the $42.45 billion rural broadband expansion program. Some states are likely to break ground later this year, while others continue work to lock in approvals and installation contracts.

"States have six months to finalize contracts with participating internet service providers and complete required environmental and historic reviews, before construction can begin," reports Jericho Casper of The Daily Yonder.

It has been more than four years since the Biden administration announced the Broadband Equity, Access, and Deployment (BEAD) program. Since then, it has gone through multiple phases and two presidential administrations. The Trump administration mandated that states trim their requests, meaning only half of the program's funding has been sent or awarded to states.

With roughly half the money spent, many state planners are wondering: What happens to the $22 billion in unspent funds? Casper explains, "The U.S. Commerce Department put the funding aside for "so-called 'non-deployment' uses,'" but what those are has remained unclear.

Lawmakers asked Commerce Secretary Howard Lutnick to explain what states can expect the funds to cover, but "he offered few specifics, saying only that guidance would come within two months," Casper reports. Lutnick did say that "states would be able to pursue 'new and exciting things' with the money."

Meanwhile, delays and uncertainty are likely to hurt programs already underway. Casper writes, "State broadband offices in Colorado and New Mexico report that some providers who initially expressed interest may ultimately default on preliminary awards."

Providers have seen their costs multiply over time and may be rethinking their bids. Casper adds, "Fiber suppliers say prices have jumped as much as 40% in recent weeks. . . . For some providers, particularly those serving remote areas, the administrative burden may outweigh the benefits."

The program's complexity and legislative heavy lifting continue to slow its progress. "Industry experts have described BEAD as the 'most complicated broadband grant program ever,'" Casper reports.

And while lawmakers have tried to speed the process, legal battles with local governments and industry providers over broadband permits continue. Casper adds, "The program once billed as 'Internet for All' is expected to reach fewer households and businesses under the revamped plan, and experts say closing the remaining gaps will require sustained investment."