Analyst Highlights Four Possible Paths for BEAD Rural Broadband Reforms

The U.S. Commerce Department appears to be shooting for mid-May to announce anticipated reforms to the $42.5 billion Broadband Equity, Access, and Deployment rural broadband funding program, according to Washington insider Blair Levin. In a research note, Levin said the four options under consideration include:

1. Requiring states to rebid and imposing a federal high-cost threshold that would shift funds from fiber to satellite
2. Requiring states to eliminate certain requirements, but allowing the results of the application process to stand with only marginal adjustments
3. Setting some general rules, but having the Commerce Department review each state’s awardee lists before approving the release of funds
4. Rewriting the BEAD Program rules to award all funding to satellite providers, rerunning the application process, and returning money to the Treasury

The last two options would face the strongest opposition, according to Levin. The third option would be unpopular because Republicans generally don’t like decisions to be made at the federal level, rather than the state level. And the fourth option would be seen as favoring Elon Musk, Trump’s biggest campaign contributor. Levin believes the first two options are the most likely to be selected, but adds that Commerce seems to prefer the first option.