NTIA Announces BEAD Funding Allocations for All States, Territories

NTIA announced funding allocations for its broadband, equity, access, and deployment program Monday. All entities will receive a formal notice of their allocations Friday, the agency said. The $42.5 billion program will be used for broadband deployment efforts, adoption and workforce development. Initial proposals may be submitted from July 1 through Dec. 1. States and territories will have access to 20% of their allocated funds once their proposal is approved by NTIA. Texas is receiving by far the largest BEAD award, at more than $3.3 billion.

Commerce Secretary Gina Raimondo said, “Whether it’s connecting people to the digital economy, manufacturing fiber optic cable in America, or creating good paying jobs building internet infrastructure in the states, the investments we’re announcing will increase our competitiveness and spur economic growth across the country for years to come." NTIA Administrator Alan Davidson called the announcement a “watershed moment,” saying states can now “plan their grant programs with confidence” and “engage with their communities to ensure they spend this money where it is most needed.”

“We came out of the pandemic different than we were before,” said FCC Chairwoman Jessica Rosenworcel. “For so long, we have clutched pearls and wrung our hands out over there not being broadband in rural communities," Rosenworcel said: "[N]ow we finally have the data and dollars to do something about it.”

High-speed internet “is a necessity in today’s society,” said White House Infrastructure Coordinator and Senior Adviser Mitch Landrieu. The Biden administration is “committed to leaving no community behind as we connect everyone in America to high-speed internet.” The White House noted every state received at least $107 million, with $107.7 million going to Delaware. Washington, D.C., American Samoa, Northern Mariana Islands and U.S. Virgin Islands received lower amounts. (See the bottom of this article for all the allocations.)

In a White House event announcing the BEAD awards, President Joe Biden likened the spending to what came out of the 1936 Rural Electrification Act. The $42+ billion will mean universally available, reliable, affordable, high-speed internet by 2030, he said to applause. "It's a bold goal, but we're a great nation," he said. Biden talked up the investment as also driving domestic manufacturing and installation jobs. He also touted the Affordable Connectivity Program's subsidization of costs for subscribers. "These savings matter in homes like I grew up in," he said, adding that the administration is working with Congress to extend the program. "[W]e can’t ignore the need for additional funding," said Free Press co-CEO Craig Aaron in a statement: "If Congress fails to invest more funding in the ACP, millions of people could lose affordable access to high-speed internet services, including networks the BEAD program will fund.”

Asked in a call with reporters Friday that was embargoed until Monday about the Buy American requirement and use of waivers for components not readily available from domestic suppliers, a White House official said the Build America Buy America Act is aimed at closing loopholes and onshoring manufacturing, which can take time. He said some components have a ramp-up period and the administration will work through the specifics. He said waivers would be time-limited and case specific, rather than broad.

State officials and industry welcomed the announcement and cited needed next steps as money prepares to go out the door. "Through the deployment of next generation wireless and fiber networks, supported by targeted investment in workforce development programs and smart permitting policies, every state in America has a generational opportunity to connect communities that need it most," said Wireless Infrastructure Association CEO Patrick Halley. USTelecom CEO Jonathan Spalter said the announcement is "a very big deal" and the group will "continue to work with" states to "bring broadband to everyone." The wireless industry "looks forward to partnering with states to maximize the use of their BEAD funds," said CTIA President-CEO Meredith Baker, adding that it's "critical for states to set program rules that provide them with the flexibility to use a range of technologies.”

"The ball is now in the states," said ACA Connects CEO Grant Spellmeyer, saying the group is "eager to work with them to fulfill the promise of the BEAD program." Rhonda Johnson, AT&T executive vice president-federal regulatory relations, said the company looks forward to "participating in future BEAD funding opportunities and doing what we can to help close the country's remaining broadband gaps." Wireless ISP Association CEO David Zumwalt said, "Important details remain, however, which require ironing out for BEAD to quickly and efficiently realize its goals" : "All solutions should be on the table. Pernicious and wasteful overbuilding must be strenuously avoided. Access to the state grant process should work to truly invite small players so more answers can be brought to bear on this national challenge. Clarifying these and other matters will improve the program for all involved, especially those who lack broadband."

Now local governments have to start reaching out to state broadband offices as states craft their initial proposals, due to NTIA by year’s end, on how they will use the BEAD funding, Crystal Ivey, NTIA technical assistance adviser, told local governments Monday in a NATOA webinar. The money won’t start flowing until 2024 to subgrantees like internet service providers, she said.

Some questions remain about the timeline for states to submit final BEAD plans. CCG Consulting President Doug Dawson noted in a Monday blog that NTIA is "expecting the final proposal to include a final list of all BEAD grant winners." The agency's notice of funding opportunity required eligible entities to submit a final proposal within one year after receiving approval of its initial proposal for grant rules. "I’m fairly certain that any pressure to speed up the grant time frame comes from the recent White House emphasis on getting infrastructure money out the door quickly," Dawson said, noting most people think the BEAD grant process "should have gone faster." Wireless ISP Association's Zumwalt noted "important details remain" about potential overbuilding, and urged states to "truly invite small players" to their grant process "so more answers can be brought to bear on this national challenge."

BEAD Funding Allocations