Are BEAD Projects in Jeopardy Under a Trump Administration?
You probably didnβt hear much talk about internet policy in political commercials or on debate stages this year. But the results of the 2024 election will have a reverberating impact on the state of the internet that could be felt for decades.
βThe good news about broadband policy is that it’s fairly bipartisan,β Blair Levin, a former chief of staff at the Federal Communications Commission and a telecom industry analyst at New Street Research, told CNET. βYou’ll very rarely find any individual politician, whether Democrat or Republican, arguing against the benefits that you get from broadband.β
While politicians might be in agreement that high-speed internet is a necessity in 2024, they have different ideas about how to get there and whatβs best for the people who use it.Β
One of the biggest questions in broadband circles right now is what will happen to the $42.5 billion Broadband Equity, Access and Deployment Program, which was passed in 2021 to grow broadband infrastructure across the country. It was the largest single investment the federal governmentβs ever made in expanding internet access.Β
βI canβt tell you how many broadband plans for Michigan Iβve written over the last 13 or 14 years,β Eric Frederick, chief connectivity officer for the state of Michigan, said in a recent interview. βItβs a lot. But weβve never had an opportunity like we have with BEAD to drive what weβre going to do with it.β
To gauge what might change in the coming months under a Trump administration, I polled a dozen industry insiders about how the BEAD program could be impacted. Hereβs what they had to say.Β
Republicans may attempt to speed up BEAD rollout
Republicans would either clear away bureaucratic red tape on the largest broadband infrastructure investment or meddle with a massively complex project thatβs already well under way. It depends on who you ask.Β Β
Three years after it was passed as part of the Infrastructure Investment and Jobs Act, Republicans have been extremely critical of the pace of BEADβs rollout, as well as its mandate for low-cost plans.Β
In a Wall Street Journal op-ed published in mid-October, Republican FCC Commissioner Brendan Carr slammed BEAD for its βdiversity, equity and inclusion requirements, climate-change rules, price controls, preferences for union labor, and schemes that favor government-run networks.β
Former Senate Commerce Chairman Roger Wicker predicted that a second Trump administration will βbe in a much better position to remove these extraneous constraintsβ on BEAD that the National Telecommunications and Information Administration βadded without statutory authorization.β Sen. Ted Cruz also added that Republicans would βconsider every optionβ to address BEADβs shortcomings if they win a majority in Congress.Β
Cruz hasnβt outlined specific steps for how he would do this, but last year, he called on states to return unused BEAD money if they already have sufficient funding from other federal broadband programs.
But at this point, the cat may be out of the bag when it comes to making changes to BEAD.Β
Speaking in a recent podcast, Alan Davidson, who heads the NTIA, the organization responsible for overseeing BEAD, dismissed Republicansβ criticism as βelection year politics.β
βI’m not that concerned about the future of this program,β Davidson said. βI’m optimistic that it will continue in this form because it’s the right way to do it. It’s the right answer for making sure that everybody in America gets connected.β
There may be only so much Republicans can do at this point to speed up the process. Frederick said BEADβs existing timeline may already be too rushed.Β
βThe timing issue that I see is the actual construction of these projects,β Frederick said. βWe have shortened construction seasons — the [Michigan] weather does not help any when it comes to building. [Having only] four years to build all these projects is going to be rough.β
Trump could shake up the NTIA — the organization administering BEAD funding
Still, experts I spoke with suggested that BEAD projects could also be in jeopardy because of changes to the NTIA. One source who spoke on condition of anonymity said theyβd expect the NTIA to be massively downsized with a Republican victory.
In the Project 2025 blueprint, former President Donald Trump’s former Department of Commerce chief financial officer, Thomas F. Gilman, described the NTIA as suffering from βorganizational malaiseβ and requiring βenergetic leadership by political appointees.βΒ
This echoes an executive order made by Trump late in his presidency known as Schedule F, which stripped federal employees of protections and allowed them to be fired for political reasons. Schedule F was canceled in the early days of the Biden presidency but could be reinstated with a Trump win. That could have a huge impact on the NTIA — and by extension, BEAD.Β
βIf Trump does what he has said about Schedule F and you replace lots of civil servants with a lot of political loyalists, there could be enormous delays in the BEAD projects because a lot of the people actually administering it at the NTIA are civil servants,β Levin explained.Β
Source: CNET