Broadband Directors Say States' Hands May Be Tied if ISPs Default

States may not be able to use money from NTIA’s broadband equity, access and deployment (BEAD) program to fund areas where an entity has defaulted on rural digital opportunities fund (RDOF) commitments, three state broadband directors said during a panel Wednesday at Mountain Connect in Denver. Should a company default on RDOF after NTIA has approved a jurisdiction’s dataset of available locations resulting from that state's or territory’s challenge process, “our hands are … tied” and BEAD can't fund that area, Sarah Baska, Georgia broadband director, said. “If we have remaining funds after we go through all the awards, we were told we cannot use those funds to … go back and rebid those areas.” Remaining money can be used only for nondeployment expenses, Baska added. Virginia interprets NTIA’s policy the same way, according to Chandler Vaughan, associate director of that state’s broadband office. “If we certify our challenge results with NTIA on Sept. 1 and there is an RDOF default on Sept. 2, we cannot get to that location under the BEAD program. No exceptions.” Arkansas State Broadband Office Director Glen Howie said NTIA should be aware of this concern. “Once our map is locked, our map is locked” and the state can’t do anything about defaults that occur afterward, he said. “It’s critically important that the federal government” understands that if there are defaults on any broadband program, “they have to be on the hook to find a new awardee,” said Howie. “That’s the only way that this thing will work.” At Mountain Connect this week, state broadband directors reported progress meeting BEAD requirements as they prepare to distribute $42.5 billion across the U.S. next year (see 2408070029 and 2408060048).