Four Ideas to Help BEAD Succeed

Congress created the Broadband Equity, Access, and Deployment (BEAD) Program in 2021 “to bridge the digital divide.”[1] The National Telecommunications and Information Administration’s own program materials say BEAD “aims to connect every American to high-speed internet” through infrastructure partnerships.[2] That is an important mission, and one that still enjoys broad support.

Operating the program, however, has been challenging, due to rule changes, difficulties identifying unserved and underserved locations, and questions about the capabilities of competing technologies.  The Trump Administration deserves credit for driving down the costs of deploying broadband to all consumers through its “Benefit of the Bargain” competitive bidding process last year.  This has generated substantial savings of roughly $21 billion, and the question now is how best to use this funding.[3]  NTIA held two listening sessions attracting thousands of participants proposing a wide variety of ideas.[4] These positive steps open the door to ask a basic question: How can policymakers maximize the chances for BEAD to succeed?

In my view, four adjustments would help.

The Biden-era BEAD framework attached a series of requirements that were not clearly rooted in the statute, such as labor and climate control measures.[5]  NTIA’s 2025 Restructuring Policy Notice eliminated these “extralegal labor, employment, and workforce development requirements”.[6]

But the Trump Administration risks repeating the same mistake in a different form. In December 2025, the Administration announced it would make states with “onerous AI laws” ineligible for BEAD non-deployment funds.[7] While the growth of AI has generated a significant policy conversation, it is outside the bounds of the BEAD statute. Last week, the Administration released an AI Action plan calling for Congress to address state AI regulation.  This is the right step, and it makes it unnecessary for NTIA to hold broadband funding hostage to AI policy.  BEAD works best when it stays close to the statute’s purpose. The more the program is used to pressure states on issues outside broadband deployment and adoption, the more vulnerable it becomes to delay, litigation, and political backlash.  Eliminating the link between AI regulation and state broadband funding would remove a significant cloud of uncertainty over BEAD’s future.

Under NTIA’s “Benefit of the Bargain” bidding program, states awarded over 20 percent of “deployment” funding to low-earth orbiting (LEO) satellite services.[8]  This is illogical; the satellite companies are already deploying thousands of satellites without government funding.  Providing these companies with “deployment” funding will not yield any additional satellites and could be considered a waste of funds. 

On the other hand, providing subsidies to cover the costs of satellite dish equipment and installation will help consumers afford to subscribe, which IS one of the BEAD program’s goals. This makes it a broadband adoption issue, not a deployment issue. States should be allowed to make non-deployment funding available to LEO satellite companies as customers sign up, rather than handing the LEO satellite providers a large up-front check.   This change would also free up deployment dollars to companies using other technologies (such as fiber, coaxial cable, and fixed wireless) that can provide more reliable and more scalable service than LEO satellites. 

After the “Benefit of the Bargain” competitive bidding process was completed, NTIA adopted a relatively new rule regarding future federal support. In an October 2025 speech at the Hudson Institute, Assistant Secretary Arielle Roth said NTIA would require broadband awardees to certify that they would not “require or take additional federal subsidies—including operational subsidies—to complete or operate their BEAD projects.”[9] That policy was later codified into Term 51 of the November 2025 BEAD General Terms and Conditions.  NTIA justified the rule on default-prevention grounds, arguing that reliance on speculative future funding increases the risk that a project will fail.[10]

The concern is legitimate, but the flat prohibition on additional federal funding may overshoot. Some BEAD-supported locations are extremely costly to serve, and BEAD is primarily a capital program, not an operating-support program. A blanket ban on any federal support for operational costs could deter some broadband providers from participating in the program and could result in a multitude of defaults if the operational costs make the projects unsustainable. It would be a shame for the program to promise rural consumers that broadband is coming, but then to see providers default, leaving consumers high and dry.  Instead, NTIA may want to create a narrow pathway for later operational support—perhaps through the Federal Communications Commission’s High-Cost Fund—which may do more to prevent defaults than a blanket ban.

Finally, if NTIA wants BEAD-funded networks to last, it should pay closer attention to adoption. NTIA’s own BroadbandUSA homepage describes BEAD as a program supporting broadband “deployment, mapping, and adoption,” not deployment alone. In the February 2026 listening sessions on the use of BEAD savings, the Benton Institute for Broadband & Society reported that broadband adoption was the dominant theme, with speakers repeatedly urging NTIA to support affordability, devices, and digital skills alongside network construction.[11]

That emphasis makes practical sense. A network that reaches all households but never gains enough subscribers is a weak long-term investment. If the objective is durable universal connectivity, then helping consumers afford the service and equipment and acquire the skills needed to use broadband productively is not a side issue. It is part of making the infrastructure economically and socially viable.  When NTIA issues its formal guidance on the use of non-deployment funds, it should urge states to set aside a certain portion of non-deployment funds for broadband adoption initiatives.

BEAD still has a real chance to close major gaps in U.S. broadband availability and use. The statutory mission remains sound, and NTIA has made significant progress in administering the program.  But success will depend on discipline. The program should not be overloaded with unrelated policy fights. Satellite support should be matched to the actual affordability barriers consumers face. Broadband providers in the hardest-to-reach areas should not be boxed into unsustainable business models. And a certain percentage of non-deployment funds should be used to boost adoption.

These are not radical changes. They are practical adjustments that would make BEAD more consistent with its statutory purpose and more likely to deliver lasting results. Making these changes could help the Trump Administration declare victory in solving the digital divide once and for all.

John Windhausen, Jr. is an independent broadband analyst.  He formerly served as Executive Director of the Schools, Health & Libraries Broadband (SHLB) Coalition and was a staff attorney in Congress and at the FCC.  He can be reached at jwindhausen@telepoly.net.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy – rooted in the values of access, equity, and diversity – has the power to deliver new opportunities and strengthen communities.

© Benton Institute for Broadband & Society 2026. Redistribution of this email publication – both internally and externally – is encouraged if it includes this copyright statement.

For subscribe/unsubscribe info, please email headlinesATbentonDOTorg

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-220-4531
headlines AT benton DOT org

Share this edition:

Broadband Delivers Opportunities and Strengthens Communities