Trump Overhaul Threatens $21 Billion in Broadband Grants for US States

A Senate Republican has drafted legislation that would effectively cut a 42 billion broadband deployment program in half. The bill would complement the Trump administration overhaul of the 42.45 billion Broadband Equity, Access, and Deployment (BEAD) program. The administration required states to rewrite their grant plans, reducing the overall projected spending and diverting some of the money from fiber projects to satellite. The result is that over 21 billion is projected to be left over after money is allocated to projects that expand broadband access. According to the Benton Institute for Broadband Society, a draft bill by Sen. Joni Ernst (R-Iowa) would change the law to redirect all the remaining money to the US Treasury for deficit reduction. The institute published the leaked draft bill last week. When contacted by this reporter, Ernst's office declined to comment on the draft legislation. However, a spokesperson for the Benton Institute stated that the proposed change would be a significant shift in policy, potentially limiting the availability of funds for broadband expansion projects. Under current US law, nondeployment funds can be used for other broadband-related purposes, such as providing Wi-Fi and Internet-capable devices to US residents. The proposed legislation would eliminate this flexibility, redirecting the remaining funds to the Treasury. This move has sparked concerns among advocates for broadband expansion, who argue that the funds should be used to address the ongoing digital divide in the US. The Trump administration's overhaul of the BEAD program aimed to streamline the grant process and increase transparency. However, critics argue that the changes have resulted in reduced funding for critical broadband expansion projects. The proposed legislation by Sen. Ernst would further limit the availability of funds, potentially exacerbating the issue. The current status of the proposed legislation is unclear, as Ernst has not formally filed the bill. However, the draft bill has sparked intense debate among lawmakers and advocates for broadband expansion. As the issue continues to unfold, stakeholders will be closely watching the developments in Washington to determine the fate of the remaining BEAD funds.