On June 6, 2025, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) changed the direction of the Broadband Equity, Access, and Deployment (BEAD) Program, a federal-state partnership established by Congress in the Infrastructure Investment and Jobs Act.

States, Washington (DC), Puerto Rico, and U.S. territories¹ appeared on track to bring fiber-optic broadband networks to nearly every unserved location in the U.S. Under Commerce Secretary Howard Lutnick’s leadership, NTIA is now instructing states to pick the cheapest technologies to deliver internet access, forcing every state and territory to redo their subgrant programs in 90 days. NTIA’s Policy Notice also eliminates BEAD requirements for fair labor practices, factoring in climate changes over the lifetime of networks, consumer protections, and measures to ensure these taxpayer-funded networks are affordable for potential subscribers.

States are on tight deadlines to implement the changes outlined, with the first—updating the state’s Initial BEAD Proposal—coming on July 6, 2025.

I. Technology Neutral Approach for Broadband Projects

In the Policy Notice, NTIA adopts what it calls a technology-neutral approach to encourage diverse broadband solutions. The law says states should prioritize “priority broadband projects” designed to:

• provide broadband service that meets speed, latency, reliability, consistency in quality of service, and related criteria as the Assistant Secretary shall determine; and 
• ensure that the network built by the project can easily scale speeds over time to—
  • meet the evolving connectivity needs of households and businesses; and 
  • support the deployment of 5G, successor wireless technologies, and other advanced services.

Based on this language, BEAD had a “fiber-first” preference. The Policy Notice eliminates any distinctions between fiber, reliable broadband services (which includes Cable Modem/Hybrid fiber-coaxial technology, digital subscriber line (DSL) technology, and terrestrial fixed wireless technology utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum), and alternative technologies (like LEO). Now, all technologies meeting scalability, latency (less than or equal to 100 milliseconds), and speed (not less than 100 megabits per second for downloads and 20 megabits per second for uploads) performance standards can be considered without preference.

II. Elimination of Some Program Requirements

The Policy Notice terminates certain BEAD requirements on fair labor practices, workforce development, climate change resilience, and net neutrality. Instead, providers only need to self-certify compliance with federal labor laws. ​Local coordination and stakeholder engagement requirements are also scaled back. ​

• States will now satisfy the Infrastructure Investment and Jobs Act’s requirement to “give priority to projects based on... [a] demonstrated record of and plans to be in compliance with Federal labor and employment laws” by requiring a subgrant applicant to certify compliance with such laws. 
• Broadband providers that win BEAD awards can now satisfy the law’s requirement to ensure reliability and resilience of broadband infrastructure by establishing risk management plans that account for technology infrastructure reliability and resilience, including from natural disasters (e.g., wildfires, flooding, tornadoes, hurricanes, etc.) as well as cybersecurity best practices.
• By law, broadband providers that win BEAD awards still must “include interspersed conduit access points at regular and short intervals” for any project that involves laying fiber optic cables or conduit underground or along a roadway. 
• The  Infrastructure Investment and Jobs Act requires states to adopt local coordination requirements established by NTIA. NTIA concludes that a state shall satisfy this requirement by certifying that it observed the Final Proposal public comment requirements and received plans submitted by political subdivisions up until submission of the Final Proposal to NTIA.
• States must adhere to the Infrastructure Investment and Jobs Act’s requirement not to exclude various entities (such as municipalities) from eligibility for BEAD subgrants.

Will Bead Still Be Affordable?

In the Infrastructure Investment and Jobs Act, Congress found that “[a]ccess to affordable, reliable, high-speed broadband is essential to full participation in modern life in the United States.” Accordingly, NTIA previously sought to ensure that each state had a middle-class affordability plan to ensure that all consumers have access to affordable high-speed internet. Congress also mandated that each BEAD grantee offer at least one low-cost service plan for eligible, low-income consumers.

• The Policy Notice eliminates a previous requirement for states to develop, implement, and provide updates on a middle-class affordability plan.
• The Infrastructure Investment and Jobs Act requires BEAD subgrantees to “offer not less than 1 low-cost broadband service option for eligible subscribers.” NTIA will now only approve proposals from states that include low-cost broadband service options proposed by the subgrantees themselves. NTIA also redefined which consumers are eligible for such plans: eligibility now matches the eligibility criteria for the Federal Communications Commission’s Lifeline Program.² BEAD subgrantees are responsible for verifying eligibility and may ask potential subscribers to provide the same documentation necessary to confirm eligibility as is required under the Lifeline program.

III. Benefit of the Bargain Round for Subgrantee Selection

NTIA has now rescinded all existing BEAD award selections, and new applications must be considered. ​ 

All states and territories must conduct a new round of subgrantee selection to ensure fair competition. ​All internet service providers—even if they haven’t participated in earlier bidding rounds—can apply.

States have 90 days (September 4, 2025, if our math is correct) to re-do their Initial BEAD Proposal to align with this Policy Notice, do another round of grantee selection, complete their selections, and submit a final BEAD proposal. ​In context, states were taking 6-9 months to run bidding processes under the old BEAD rules. 

Scoring Criteria for Project Selection

For evaluating applications for BEAD awards, NTIA revised scoring criteria to primarily favor the lowest cost bidder, with secondary criteria including deployment speed, network speed, and provisional award status.

Primary Criteria

States must choose the proposal with the lowest cost based on minimal BEAD Program outlay. This may involve selecting a proposal that is not the lowest-cost option for a given set of locations but is part of the combination of selected projects with the lowest overall cost to BEAD. States will assess the total BEAD funding that will be required to complete the project (i.e., the total project cost minus the applicant’s proposed match) and the cost to BEAD per location (i.e., the total BEAD funding that will be required to complete the project divided by the number of locations the project will serve).

Secondary Criteria

If an application to serve the same general project area proposes a project cost within 15 percent of the lowest-cost proposal received for that same general project area on a per-location basis, the state must evaluate such competing applications based on the following three criteria. (The relative weighting of these three criteria shall be at the discretion of the state.)

1. Speed to Deployment. The prospective subgrantee’s binding commitment to provide service by a date certain that is earlier than four years. 

2. Speed of Network and Other Technical Capabilities. States may weigh the speed, latency, and other technical capabilities of the technologies proposed by prospective subgrantees. 

3. Preliminary/Provisional Subgrantees. For locations where states have already identified preliminary or provisionally selected subgrantees, states may give additional weight to those applications in the Benefit of the Bargain Round.   

States will no longer score applications based on fair labor practices, affordability, equitable workforce development and job quality, open access, or local and tribal coordination.

IV. New Process to Determine Locations Eligible for BEAD Support

States are not required to rerun their challenge process, which determined which locations were eligible for BEAD support. However, states must implement the following measures that will impact location eligibility: 

• Investigate and account for locations that do not require BEAD funding;
• Modify BEAD-eligible location lists to include locations where a provider has defaulted in another Federal broadband deployment program;
• Account for locations with access to existing unlicensed fixed wireless (ULFW) providers’ networks to prevent overbuilding (previously, states were not required to consider ULFW locations as served). Before implementing the Benefit of the Bargain round— 
  • States must review the FCC’s National Broadband Map to determine whether such an ULFW provider currently offers service to any BEAD-eligible locations in its jurisdiction. 
  • If so, the state must notify the ULFW provider that it has seven calendar days to respond that the ULFW provider intends to submit evidence that BEAD funding is not required for the locations it serves. 
  • If the provider does not respond or fails to meet the requirements, the locations in question will remain BEAD eligible.
  • If a ULFW service provider demonstrates that it meets the requirements, the served locations will be ineligible for BEAD Program funding. 
• Revise their list of eligible Community Anchor Institutions (CAIs) to ensure their designations conform with the Infrastructure Investment and Jobs Act’s definition of a CAI. NTIA will closely review all CAI submissions and will narrowly interpret the term “community support organization” as used in the statute. NTIA reserves the right to reject any CAI designation.

V. Non-Deployment Funds

The Infrastructure Investment and Jobs Act allows states to use BEAD funding for a number of activities past broadband deployment to unserved and underserved areas, including broadband adoption and providing affordable internet-capable devices.

Funding for allowable non-deployment purposes is now under review, and NTIA will issue updated guidance in the future. 

NTIA rescinds approval of all non-deployment activities approved earlier in the BEAD process. NTIA will not reimburse states for any new costs associated with previously approved non-deployment activities incurred after June 6, 2025. NTIA tells states to consult with the National Institute of Standards and Technology (NIST) Grants Office and NTIA if the state believes that it is entitled to reimbursement for non-deployment activities or costs that were previously incurred. 

Final Proposals will only require detail on the use of BEAD funds for deployment projects.

VI. Environmental Permitting

NTIA has set a goal to issue National Environmental Policy Act (NEPA) approvals within two weeks for an estimated 90 percent of BEAD projects and eliminate approximately 3-6 months of environmental processing per project.

States are now required to use the new Environmental Screening and Permitting Tracking Tool (ESAPTT) within the NTIA Grants Portal. 

• ESAPTT will help Eligible Entities serve as joint lead agencies for NEPA reviews by identifying applicable categorical exclusions and enabling paperless transmission of environmental documents and generation of draft and final NEPA documents. 
• NTIA will generate ESAPTT project records from BEAD subgrant award data, which must identify any awards containing multiple NEPA project areas. 
• States are encouraged to use ESAPTT’s permitting tracking capacity to evaluate and track subrecipient NEPA milestone schedules and escalate Federal right-of-way permitting issues to NTIA for interagency resolution.

VII. Planning Redo and Access to Additional Funding

NTIA rescinded the previously approved Final BEAD Proposals from Delaware, Louisiana, and Nevada, “as those Final Proposals no longer effectuate the goals of the Program or the agency priorities.” All states must adhere to the changes in the June 6 Policy Notice.

States have 30 days (July 6, if you’re scoring at home) to request an Initial Proposal correction to incorporate the terms of the new Policy Notice into their plans. [No other modifications to Initial Proposals will be considered at this time.] The submission must include the list of newly added locations, if applicable. 

A state may also submit an Initial Proposal Funding Request budget modification, should it need access to additional BEAD funds or need to reallocate BEAD funding across cost categories to execute the actions required by this Policy Notice. 

A state may execute its modified subgrantee selection process once NTIA approves the Initial Proposal correction. Budget modifications will require both NTIA and NIST approval.

VIII. Don’t Read That

NTIA rescinds two of its previous Public Notices.

1. Selecting the Most Robust, Affordable, Scalable Technology (released June 26, 2024)

The purpose of this Policy Notice was to provide states and prospective BEAD awardees with guidance on strategies to obtain bids for Priority Broadband Projects and Reliable Broadband Service projects that fall under the Extremely High Cost Per Location Threshold (EHCPLT), and ways to seek out the most robust, affordable, and scalable solution for each location where the costs to deploy exceed the EHCPLT, all while ensuring coverage of all unserved and (where financially feasible) underserved locations. 

2. Alternative Broadband Technology Policy Notice (released December 12, 2024)

This Policy Notice outlined the steps states would have to follow when deciding whether to award BEAD subgrants for Alternative Technology broadband deployment projects. 

Notes

1. Congress established the BEAD Program in the Infrastructure Investment and Jobs Act and defined "Eligible Entities" as all 50 U.S. states, the District of Columbia, Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. Here, we use the shorthand "states."
2. Consumers may qualify for the Lifeline program if they have a gross household income at or below 135% of the Federal Poverty Guidelines. Consumers may be eligible for the Lifeline program if they participate in a qualifying program:

• Supplemental Nutrition Assistance Program (SNAP)
• Medicaid
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Veterans and Survivors Pension Benefit
• Bureau of Indian Affairs General Assistance
• Tribally-Administered Temporary Assistance to Needy Families (TANF)
• Tribal Head Start
• Food Distribution Program on Indian Reservations (FDPIR)

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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