Overview

• The NTIA’s August FAQ update cites the IIJA’s prohibition on rate regulation to prohibit states from setting specific low-cost broadband rates in their BEAD applications.
• Any BEAD proposal that includes state-imposed price caps now risks being rejected, prompting widespread removal of affordability mandates to preserve grant eligibility.
• California pulled its $15-plan affordability bill after NTIA officials indicated the measure would endanger the state’s access to an estimated $1.86 billion in BEAD funding.
• New York’s $15 broadband law is in conflict with the updated guidance, leaving its projected $664 million allocation uncertain until it aligns with federal rules.
• The June BEAD Restructuring Policy Notice eliminated Biden-era affordability requirements and barred states from reimposing removed terms, reinforcing a technology-neutral funding model.