Trump administration changes to the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grant program are poised to introduce years of potential new delays to the already slow-moving program, potentially undermining the program’s goal of bringing universal broadband access to mostly rural communities.

Worse, the looming changes would eliminate efforts to ensure taxpayer-funded broadband is affordable for low-income Americans, while driving billions in new subsidies to the world’s richest man and Trump mega donor Elon Musk.

Testifying this week before a Senate Appropriations Committee, Commerce Secretary Howard Lutnick confirmed that the National Telecommunications and Information Administration (NTIA) will "soon" issue a new Notice of Funding Opportunity (NOFO) that states will have 90 days to respond to.

The revisions will ensure that billionaire Elon Musk – and his capacity-constrained satellite broadband network Starlink – will receive significantly more taxpayer money. Such Low-Earth orbit satellite networks were slated to get some funds, but federal changes may result in them dominating grant funding, overruling the mix of technology states had originally preferred.

Other changes being implemented include elimination of provisions ensuring affordable access for low-income Americans.

The Trump administration’s dismantling of a popular broadband grant program has been greeted with disgust and anger by those doing the heavy lifting to bridge the country’s digital divide, leaving many states' planned broadband expansions in limbo, and affordable broadband advocates contemplating potential legal action.  

The unprecedented choice to destroy digital skills training and broadband adoption programs created by an act of Congress is seeing escalating pushback by a growing coalition of frustrated lawmakers and state broadband offices.

Last week, President Trump announced via a Truth Social post that he was ending the Digital Equity Act, falsely claiming that the program was “unconstitutional” and “racist.”

“No more woke handouts based on race!” the President said. “The Digital Equity Program is a RACIST and ILLEGAL $2.5 BILLION DOLLAR giveaway. I am ending this IMMEDIATELY, and saving Taxpayers BILLIONS OF DOLLARS!"

Image

But the popular program was perfectly legal, barely focused on race, and was proving to be of broad benefit to countless Americans – including many of the President’s own supporters in long-neglected rural counties.

The $2.75 billion Digital Equity Act was passed by Congress as part of the 2021 infrastructure bill. It mandated the creation of three different grant programs intended to shore up equitable, widespread access to affordable Internet, while providing the tools and digital literacy education needed to help neglected U.S. communities get online.

A legal challenge to the Trump administration’s unilateral decision to kill a law passed by Congress seems all but certain.

Some of the nation’s leading thinkers and doers in the community broadband sector will connect and collaborate in the nation’s capital for the inaugural Community First: The Future of Public Broadband Conference and Hill Day next week.

Slated for May 14 and 15, the two-day conference is being hosted by the American Association for Public Broadband (AAPB) and New America Open Technology Institute (OTI), in partnership with ILSR's Community Broadband Networks Initiative, the Benton Institute for Broadband & Society, and the Community Broadband Action Network.

The in-person gathering will bring together public broadband champions, community leaders, policymakers, and industry experts to focus on strategy and advocacy in the face of potentially dramatic changes to the $42.5 billion BEAD program – the single-largest federal investment to ensure every household in the nation has access to high speed Internet connectivity.

Registration and tickets are still available here.

Image

With the rise of community-owned broadband networks and cooperatives now flourishing across the nation, organizers are hoping to create “an essential space to share best practices, discuss financing, shape public policy, and support the development and expansion of public broadband networks.”

If you missed our inaugural Community Broadband Film Fest series kick off last week, the entirety of the event can still be viewed on ILSR’s YouTube channel.

Co-hosted by ILSR’s Community Broadband Networks Initiative and the American Association for Public Broadband (AAPB), the March 27th livestream event premiered the eight minute mini documentary on how the city of Holland, Michigan came to build a municipal broadband utility to supercharge its local economy.

Following the live screening before an audience of over 100 virtual participants there was a lively discussion with several of the film’s key figures: Holland Board of Public Works Director of Utility Services Ted Siler, Superintendent of Broadband Services for Holland Board of Public Works Pete Hoffswell and Holland Mayor Nathan Bocks.

The Holland panel explored a number of themes raised in the film, including where the project stands now, the challenges involved in moving forward, and how the network is a natural extension of other vital infrastructure the city has built over the years.

Watch the event in its entirety below:

At the “Municipal Broadband and Innovative Financing Models: Unlocking Economic Growth” webinar earlier today, attendees got an inside look at how successful community broadband networks have been funded – and how cities and towns can still finance networks even with the uncertainty now swirling around the federal BEAD program.

Co-hosted by ILSR’s Community Broadband Networks Initiative and the American Association for Public Broadband (AAPB), the webinar featured a wealth of municipal broadband financing knowledge from four guests with deep experience navigating the numbers.

Co-host Gigi Sohn, who was joined by ILSR’s Sean Gonsalves, began the webinar with a brief explanation on why AAPB and ILSR are joining forces for what will be a series of webinars designed to assist cities and towns in how local and state leaders can deal with solving local connectivity challenges where the big incumbent ISPs have failed to deliver ubiquitous and reliable service.

Image

“I've been traveling around the country and I hear from a lot of communities who are very interested in a model where they control their broadband networks in their communities,” she said. “We want to kind of demystify the finance part and try to get communities more comfortable with how they can move forward.”

The first guest expert to take center screen was Ernie Staten, the City of Fairlawn, Ohio’s Public Service Department Director.

The American Association for Public Broadband (AAPB) and ILSR’s Community Broadband Networks Initiative are teaming up to host a webinar later this month for local and community leaders interested – or on the fence – in pursuing municipal broadband solutions to local connectivity challenges.

“Municipal Broadband and Innovative Financing Models: Unlocking Economic Growth” will focus on ways publicly-owned broadband networks can be financed and feature municipal broadband providers and financing experts who have successfully navigated the maze of municipal finance.

The free webinar is slated for February 20, 2025, from noon to 1 pm ET.

Image

Registration is open now here.

Co-hosted by AAPB Executive Director Gigi Sohn and Sean Gonsalves from ILSR's Community Broadband Networks Initiative, organizers are encouraging attendees to bring their questions, as the agenda aims to foster information-sharing and actionable insight.

Panelists for the discussion will be:

• Ernie Staten, City of Fairlawn’s Public Service Department Director
• F.X. Flinn, ECFiber Governing Board Chair
• Laura Lewis, Principal and Co-Owner of LRB Public Finance Advisors
• Eric Rex, Vice President at KeyBanc Capital Markets

“There are more than 400 publicly-owned broadband networks operating right now across the nation,” said AAPB Executive Director Gigi Sohn. “That number has been growing rapidly. But, there's more work to do to address the fear and hesitation that’s stopping some communities from pursuing the public model.”

As interest in municipal broadband continues to grow across the U.S., the American Association for Public Broadband (AAPB) has launched a mentorship program that will pair communities interested in building publicly-owned, locally controlled broadband networks with cities and towns that have successfully done so.

“We’re excited to match AAPB members with communities seeking to take control of their broadband futures,” AAPB Executive Director Gigi Sohn said in announcing the program.

“We want to demystify the process for those communities that want to ensure that everyone in their city or town has affordable access to everything that broadband enables, and we believe that our members that own their broadband infrastructure are the best people to do that.”

Image

While an increasing number of communities are exploring municipal broadband as a solution to local connectivity challenges after decades of frustration with the spotty, expensive service of big monopoly providers consistently ranked as among the most hated companies in America, local officials still must navigate the logistical, technical, financial, and political challenges associated with building and operating municipal networks.

The Federal Communications Commission (FCC) says it won’t be providing broader relief for broadband operators that have defaulted on grant awards via the agency’s messy and controversial Rural Digital Opportunity Fund (RDOF) broadband subsidy program.

According to an FCC public notice, the FCC stated it found "no demonstrated need for broad relief" from provider penalties connected to either the RDOF or Connect America Fund II (CAF II) programs. It also shot down calls for a broader amnesty program for defaulters.

“Given the flexibility available under the existing default processes…we decline to provide a blanket amnesty,” the agency’s Wireline Competition Bureau said.

In a letter to the agency last February, a broad coalition of providers and consumer organizations suggested that either reduced penalties – or some sort of amnesty program – might speed up defaults, freeing areas for upcoming broadband infrastructure bill (Broadband Equity Access And Deployment, or BEAD) subsidies.

Image

The group was quick to point out that areas where RDOF and CAF II money has been committed are considered “served” for purposes of BEAD deployments, potentially boxing out many desperate U.S. communities from billions in potential funding.

“Many of the RDOF and CAF II awardees who cannot or will not deploy their networks are located in states with the greatest connectivity needs, like Missouri and Mississippi,” the authors wrote. “The Commission should not permit these unserved rural communities to face this type of double whammy and be left behind once again.”

But in its statement, the FCC insisted that changes to its approach aren’t necessary because, it claims, its existing processes are working.