Three Questions About BEAD Non-Deployment Funding

The Department of Commerce’s National Telecommunications and Information Administration recently announced sweeping changes to the Broadband Equity, Access, and Deployment Program. Included in the BEAD Restructuring Policy Notice from NTIA is instruction that “funding for allowable non-deployment purposes is under review and NTIA will issue updated guidance in the future.” This is a reversal of NTIA’s prior position. Before the Policy Notice was issued, NTIA had approved non-deployment activities in states’ Initial Proposals; the Policy Notice rescinds those prior approvals and indicates that Final Proposals need not describe non-deployment projects. Non-deployment funds refer to BEAD funds that are left over after a state meets BEAD’s infrastructure deployment requirements. Under NTIA’s previous guidance, non-deployment funds could be used for projects related to broadband adoption, providing devices, digital skills training, and other activities to complement BEAD’s universal connectivity goals. But now, while NTIA develops new guidance, it is unclear how non-deployment funds can be used, or if the funds will even be available for such purposes.