NTIA Issues Uniform Guidance Modifying BEAD Program Rules

NTIA "directionally aligned" its approach to the broadband, equity, access and deployment (BEAD) program in a policy notice released Tuesday. The notice signaled NTIA's BEAD approach is generally in line with the Treasury Department's broadband infrastructure projects and the FCC's USF policies. The notice comes after NTIA received more than 60 comments from a range of stakeholders seeking exceptions and program adjustments.

The uniform guidance "strike[s] a well-reasoned balance that will increase efficiencies for state broadband offices and promote service provider participation, while also ensuring a high level of accountability," Deputy Chief Counsel Sean Conway wrote: "Ultimately, this approach will further the goal of ensuring everyone in America has access to affordable, reliable, high-speed internet service."

The notice clarified that providers may use program support for BEAD projects "without restriction" and upgrade equipment in BEAD-funded networks "without first obtaining NTIA's approval." It also clarified that stakeholders may "leverage the efficiencies of fixed amount subgrants in broadband infrastructure projects, reducing administrative costs for service providers and state broadband offices alike." BEAD-funded networks will be subject to a 10-year federal interest period once the network is constructed.

The guidance had some differences from Treasury's approach, NTIA noted. The agency said all providers building and operating BEAD networks are subject to the uniform guidance because the program's statute requires financial agreements between states and providers as subgrants. "If these financial agreements were structured as contracts, a more limited set of the Uniform Guidance regulations would apply to these providers," Conway wrote.

Eligible entities may also issue fixed amount subawards for broadband infrastructure projects, the notice said. Subrecipients may issue fixed amount subawards "without further NTIA approval." Subrecipients receiving such awards "are not required to comply with the cost principles" of the uniform guidance. The agency maintained its prohibition on eligible entities or subrecipients "claiming profit and fees as allowable costs."

Industry groups widely welcomed the move. NTCA "appreciates the continued efforts of NTIA to seek to strike a reasonable balance between promoting accountability in the use of BEAD funds and flexibility that should promote greater participation in the program," CEO Shirley Bloomfield said: "We look forward to further discussions with the agency and state broadband offices about outstanding critical implementation issues in the year ahead."

"Getting the details right matters," said USTelecom President-CEO Jonathan Spalter. The announcement was "a positive step towards streamlining the broadband deployment process for providers and consumers alike." Spalter also said NTIA's "commitment to align with Treasury’s approach on this issue will help ensure the overall success of BEAD." ACA Connects President-CEO Grant Spellmeyer said the waiver is "another significant step" in implementing the BEAD program, adding it will lead to "more cost-effective deployments."