Federal broadband funds of $675 million will require internet companies to reapply for this financial assistance
The Trump administration has announced significant changes to the Broadband Equity, Access, and Deployment (BEAD) program, aiming to accelerate broadband deployment with a focus on cost efficiency and technology neutrality. The new rules, issued by the National Telecommunications and Information Administration (NTIA) on June 6, 2025, will impact the $675 million allocated for high-speed internet in New Mexico and the broader $42.5 billion BEAD funding intended to bring high-speed internet to communities without it nationwide.
Key changes include:
1. **Technology-Neutral Approach**: States must opt into the new provisions by July 7, 2025, and if they do, they are required to rescind all provisional subgrantee selections and conduct a new, open selection process that treats all broadband technologies equally. This shift benefits fixed wireless and Low Earth Orbit (LEO) satellite technologies over traditional fiber projects, reflecting a new "technology neutral" approach.
2. **New Bidding Rounds**: A mandated new "Benefit of the Bargain" bidding round has been introduced, where all interested subgrantees can compete fairly for each BEAD-eligible location. This new bidding round reopens the opportunity for providers, replacing prior selections, and is critical for states that had already received preliminary approvals, which were rescinded under the new guidance.
3. **Removal of Conditions**: The guidance removes requirements related to affordability, labor and workforce standards, and climate resiliency that previously were non-statutory conditions, aiming to increase participation and competition for deployment funds.
4. **Tight Deadlines**: States opting in must submit Final Proposals within 90 days that comply with the new rules, and eligible entities must submit requests to modify Initial Proposals by July 6, 2025, conduct the additional subgrantee selection round, and then submit revised Final Proposals for NTIA review within 90 days.
The new policy has sparked controversy, with some lawmakers criticizing the rescission of final approvals and delays, while others praise the move as cutting through what they see as Biden-era bureaucratic mandates and refocusing the program on core broadband deployment goals with more competition and cost-effectiveness.
Under the new criteria, broadband providers can set their own price for a "low-cost option," and the new requirements do not prioritize the use of fiber technology. These changes aim to accelerate BEAD fund deployment but have led to uncertainty and a reset of many state broadband plans.
- The technology-neutral approach, a key change in the new BEAD program rules, is causing a reset for many state broadband plans as all broadband technologies, including fixed wireless and Low Earth Orbit (LEO) satellite technologies, are treated equally, potentially benefitting these alternatives over traditional fiber projects.
- The introduction of a new "Benefit of the Bargain" bidding round in the BEAD program enables all interested subgrantees to competitively bid for each eligible location, providing an opportunity for providers to replace prior selections and altering the landscape of high-speed internet finance and technology in the industry.
