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Trump Administration Shifts $42 Billion Broadband Program to Tech-Neutral Model

Several states have been ordered to scrap approved BEAD plans to comply with revamped guidelines, a move expected to delay broadband construction in rural areas.

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Sen. Ted Cruz holds up a hand and speaks while presiding over a Senate subcommittee hearing.

Overview

  • The administration’s tech-neutral overhaul of the $42 billion BEAD program rescinded funding approvals for plans in states like Nevada, requiring them to submit new proposals under the revised rules.
  • It removes the Biden-era preference for fiber-optic networks, opening the door to satellite, cable and fixed wireless providers such as Starlink.
  • States are barred from requiring grant recipients to offer internet at specific low-income rate levels under the new guidelines.
  • Broadband advocates warn the changes favor cheaper, less reliable infrastructure and will push back project timelines in rural America.
  • Cable lobby group NCTA praised the revisions as a way to reduce regulatory costs, while Democrats and the Benton Institute have criticized the move for undermining long-term service quality.