New bill would loosen various BEAD rules

Republicans in Congress have had several gripes with the $42 billion Broadband Equity, Access and Deployment program. Now, new legislation looks to address those complaints.

Rep. Richard Hudson, a North Carolina Republican, earlier this month introduced the Streamlining Program Efficiency and Expanding Deployment for BEAD Act, known as the SPEED for BEAD Act. He did so alongside members of the House Energy and Commerce Committee’s Subcommittee on Communications and Technology, which Hudson chairs.

The legislation would amend the 2021 bipartisan infrastructure law and loosen several requirements. It would clarify that any technology, including satellite internet, can be used to help close the digital divide, and would eliminate what Hudson called “burdensome” regulations that were implemented by former President Joe Biden’s administration, including around labor, climate change and pricing.

The bill also would ensure that funds are used for deployment and workforce development and give providers more flexibility on the projects they choose to work on. In a symbolic move, the bill also would change BEAD’s name to be the “Broadband Expansion, Access and Deployment program.”

"Too many Americans do not have access to broadband," Hudson said in a statement. "Yet, not a cent of the BEAD funds have been put towards actual deployment for even one household. This is unacceptable. Our rural communities need to be fully connected, and this legislation will do that."

Hudson’s bill represents the first major step towards amending BEAD, and comes on the heels of Commerce Secretary Howard Lutnick announcing a review of the program, and a subcommittee hearing in which a number of Republicans aired their grievances with it.

Various trade groups expressed their support for the bill. Grant Spellmeyer, president and CEO of ACA Connects — America’s Communications Association, said in a statement that it would “streamline unnecessary requirements that are slowing deployment down.” 

And Chip Pickering, CEO of telecoms trade association INCOMPAS, said in a statement that it “ensures BEAD takes an all of the above approach to technology, streamlines regulations, and will get networks up and running faster.”

Others, however, are not convinced that changing BEAD at this stage is the right course of action. With every state and territory having had their deployment plans approved by the National Telecommunications and Information Administration and several states ready to distribute grant funding and deploy infrastructure, some warned that a change now could delay the program further.

“To halt progress now, or worse, force states to redo their work, would be disastrous,” said Sarah Morris, a former acting NTIA deputy administrator, during the House subcommittee hearing. “It would delay broadband deployment for years and waste taxpayer dollars. Congress intentionally gave states flexibility in implementing BEAD. States know best how to address their unique geographic and economic conditions, and they should be allowed to make the transformative investments that they are poised to do.”

Without what they describe as needed reforms, some states say they could return federal funds originally distributed for BEAD. In an early March letter to Texas Republican Reps. Craig Goldman and August Pfluger, Glenn Hegar, the state’s comptroller of public accounts, said he may be in a position to return nearly $1 billion from its original allocation of $3.3 billion as BEAD’s “unnecessary red tape and social initiatives” has stopped that money being used.

“Since [the money was allocated], federal approval processes rife with overburdensome and conflicting regulatory requirements have hamstrung Texas’ ability to quickly deploy this federal funding to connect Texans to high-speed internet,” Hegar wrote.

Others are not waiting for federal funds to push for digital equity. New York City Mayor Eric Adams earlier this month announced a $2.4 million investment to make it easier for residents to access devices and improve their digital literacy skills, while also renovating computer labs in libraries and centers for older adults.

Adams also unveiled a new NYC Digital Equity Roadmap, which includes the creation of a new chief digital equity officer in government. In a statement, he said the aim of the effort is “meeting New Yorkers where they are.”

Missouri State Rep. Louis Riggs, a Republican, called on Congress to leave states alone, let them get people online through BEAD and resist the urge to make changes to a program he said has been slow, but is working as intended.

“Do you actually want people to get the money to where it's supposed to go? Or do you want to play this game again and make brownie points on Fox News?” Riggs said in an interview late last month. “Personally, I would like to see the people who don't have it get it with a minimum of fanfare, minimum fuss. Shut the hell up and let us get on with our jobs.”