Thursday, June 26, 2025
Headlines Daily Digest
Don't Miss:
Cruz Budget Reconciliation Language Leverages BEAD Funding to Ban State AI Laws for 10 Years
Broadband Funding










Broadband Mapping

Broadband Use

Wireless

Platforms





Elections & Media

Policymakers



Stories From Abroad


New Cruz Budget Reconciliation Bill Same as the Old Cruz Budget Reconciliation Bill: Leverages BEAD Funding to Ban State AI Laws for 10 Years

Senator Maria Cantwell (D-WA), Ranking Member of the Senate Commerce Committee, criticized new reconciliation bill language released today by Chairman Ted Cruz (R-TX) which forces states receiving BEAD funding to choose between expanding broadband or protecting consumers from AI harms for ten years. The new language also auctions spectrum critical to national defense. “The newly released language by Chair Cruz continues to hold $42 billion in BEAD funding hostage, forcing states to choose between protecting consumers and expanding critical broadband infrastructure to rural communities,” Sen. Cantwell said. “Forty State Attorneys General oppose the AI moratorium that would leave every American vulnerable to AI-assisted fraud, theft and abuse at a time when we should be strengthening consumer protections. This bill would auction off spectrum essential for military drone operations and risk grounding both civilian and military aircraft due to interference with airplane altimeters. It would jeopardize our weather tracking radar systems and the bands we rely on for WiFi connectivity. And for what? So telecommunications companies—the same ones that failed to protect Americans from Salt Typhoon—can profit and Trump can hawk more of his $47.45 phone plans. This is a fundamental threat to our national defense and a massive giveaway to China."
Sen Klobuchar, Rep Clyburn, And Over 40 Members of the House and Senate to the Trump Administration: Reverse Course and Fully Implement Broadband

Sen Amy Klobuchar (D-MN), Rep Jim Clyburn (D-SC), and over 40 of their colleagues called on Secretary of Commerce Howard Lutnick to fully implement the Broadband Equity Access and Deployment program as Congress intended to connect all Americans to high-quality, affordable internet. This letter comes as the Department of Commerce announced substantial changes to the implementation of the BEAD program. The legislators urged Secretary Lutnick to give states "the full funding and flexibility they retained prior to the issuance of the restructuring notice." They wrote, "As reflected in the Bipartisan Infrastructure Law’s congressional findings, high-quality internet access is a requirement to fully participate in the world, and the BEAD program is our once-in-a century opportunity to finish closing the digital divide. We fear this opportunity would be squandered by the restructuring notice and its changes to coverage, quality, and affordability. We therefore urge you to implement the BEAD program in accordance with the best reading of the statute so we can make high-quality internet accessible and affordable for all Americans."

In the waning days of the first Trump administration, new language went into effect in an obscure regulation covering federal grants. The change appeared to give the government the right to torpedo a grant in the middle of a project with little justification, even if the recipients were doing exactly what the government had told them to do. The revision in November 2020 by Trump’s Office of Management and Budget stated that, “to the greatest extent authorized by law,” a grant could be pulled if it “no longer effectuates the program goals or agency priorities.” In the middle of a pandemic and a contentious election, not many people noticed the change in language buried inside a regulation like 2 CFR 200.340(a)(2). Now, after lurking mostly beneath the radar, five consequential words—“no longer effectuates agency priorities”—are being deployed by Trump’s appointees to kill grants unilaterally across the government and advance the president’s political agenda. [March 27, 2025]

I’m going to talk about something that I imagine will be discussed at about half of the panels here—the Commerce Department’s June 6 Policy Notice laying out the Administration’s new requirements for the $42.5 billion Broadband Equity Access and Deployment (BEAD) Program. While I’m sure that some of you are steeped in the details of the Policy Notice, I’m guessing that many of you aren’t. My plan is to walk you through the highlights and give my spin. Then I want to open the floor to your reactions—positive or negative. I don’t have time to hit every change, so let me touch on six of the biggest ones. Optimists believe that LEO satellite service and unlicensed fixed wireless services are unlikely to meet that standard, and in some cases might not even meet the basic speed and latency requirements. LEO service suffers from severe congestion problems, resulting in long waiting lists and high congestion fees, while unlicensed fixed wireless is dependent on the availability of unlicensed spectrum, which is no certainty given recent talks on Capitol Hill and at the FCC.
[Gigi Sohn is the Executive Director of the American Association for Public Broadband and the Benton Senior Fellow and Public Advocate.]

The current total of Broadband Equity, Access, and Deployment program-eligible locations is far lower than when the National Telecommunications and Information Administration first calculated BEAD funding allocations back in June 2023. While exact eligible locations lists are still subject to change as state broadband offices scramble to incorporate the “benefit of the bargain round," the number of eligible locations is lower—and in many cases, significantly so—than when BEAD funds were divvied up. This dramatic decrease in eligible locations will likely manifest in leftover deployment funds. Indeed, states will have the same amount of BEAD funding available to them, but fewer locations that need to be served. With overall BEAD-eligible locations plummeting by at least 59 percent and perhaps as much as 65 percent nationally, states could now theoretically have an average of more than twice as much funding per remaining BEAD-eligible location.

The reverberations from the last-minute changes to the Broadband Equity, Access, and Deployment (BEAD) Program continue. But, since the new BEAD plans were unveiled, industry expert Blair Levin — policy adviser to New Street Research — has had time to refine his assessment. “Our initial reaction was that the new rules would shift funds from fiber to satellite, a negative for wired providers…We still think that but in talking to numerous stakeholders, that magnitude of the shift may be less than we initially thought,” says Levin. Levin reviewed the impact of the rules and provided a new analysis. The process, he says, may be chaotic in a similar manner to the Rural Digital Opportunity Fund (RDOF) auction. He also suggested that states may be able to salvage more of their original BEAD plans than was originally thought likely. That, by no measure, means that the changes will be easy to navigate.

The federal government is pouring $42.5 billion into funding broadband infrastructure across the country so that all Americans can get online. But five months after we should have broken ground on the new broadband networks, Commerce Secretary Howard Lutnick hit reset on the entire program. The new rules he released won't bring us any closer to closing the digital divide—in fact, they'll undo years of progress toward that goal. The new guidance for the Broadband Equity, Access, and Deployment program forces all states—red and blue—to redo the results of years of planning on a draconian 90-day timeline. Many states had already selected internet providers based on thoughtful evaluations that considered local areas' needs. Now, all of those choices are moot, and states are scrambling to make new ones. Worse, providers must now bid on projects nationwide all at once, undoing the previous region-by-region approach that let them realistically assess where they could build. We're about to see a perfect storm of rushed decisions from states and providers who don't have all the information they need. The likely outcome? Worse quality internet at higher prices for consumers.
[Jessica Dine is a Policy Analyst at New America's Open Technology Institute]

On June 6, 2025, mere hours after Elon Musk started his tweet war with the president, the Commerce Department released its long-awaited revisions to the Broadband Equity, Access, and Deployment program. This $42 billion broadband-deployment plan was part of the bipartisan Infrastructure Investment and Jobs Act that Congress passed in November 2021. As expected, the Trump administration’s revisions radically overhauled what had been a rural broadband-deployment plan focused on building fiber networks—and turned it into a free money dispenser for Elon Musk’s satellite-broadband company, Starlink. Had this billionaire bromance fallen apart a few weeks earlier, we might have seen a less sweeping revision of this once-in-a-lifetime infrastructure program. But now that this revised plan is out there, analysts everywhere—operating on the premise that Trump-administration corruption is a given—are trying to predict how and to what degree the Trump team will enforce these changes designed to unjustly enrich Musk, a man the president reportedly called “a big time drug addict” as the two traded barbs.

Tyler Cooper, editor-in-chief at BroadbandNow, joins the Divide to discuss recent research released by BroadbandNow, following a manual audit of over 100,000 addresses, revealing that the Federal Communications Commission's broadband map is still undercounting the number of people without broadband access in the US by 6.4 million. Specifically, the FCC's data estimates that 19.6 million Americans lack access to broadband at 100/20 Mbit/s, but BroadbandNow's audit revealed that number is closer to 26 million, representing a 33 percent undercount. Indeed, the group found that provider filings to the FCC overstate broadband availability "most sharply for newer fiber networks." According to BroadbandNow, 66.5 percent of "fiber-served" addresses on the FCC's map are unable to order a 100/20 Mbit/s fiber plan. Service providers are also exaggerating their coverage through DSL by 48.7 percent, fixed wireless by 44.6 percent and cable by 14.5 percent.

Perhaps no one should be surprised that, in the age of streaming, videoconferencing, and multi-player gaming, along with a sprinkle of virtual reality, average and median home broadband usage continues to climb. However, it was perhaps somewhat unexpected that the rate of growth declined of late, according to OpenVault, which puts out its quarterly Broadband Insights report based on aggregated and anonymized data from an array of broadband operators. But it may be too early to call this a trend. OpenVault's Q1 2025 report found that average downstream and upstream usage accelerated a bit, for a combined 663 gigabytes versus 606GB in the year-ago period. OpenVault said this rise in the usage rate (17.6 percent for upstream and 8.9 percent for the downstream) was the biggest jump since 2022—just a couple years after the start of the COVID-19 pandemic caused millions to work and school from home.

Sens Marsha Blackburn (R-TN), Richard Blumenthal (D-CT), Mike Lee (R-UT), Amy Klobuchar (D-MN), and Dick Durbin (D-IL) introduced the bipartisan Open App Markets Act. The Open App Markets Act would:
- Protect developers’ rights to tell consumers about lower prices and offer competitive pricing;
- Protect sideloading of apps;
- Promote competition by opening the market to third-party app stores, startup apps, and alternative payment systems;
- Make it possible for developers to offer new experiences that take advantage of consumer device features;
- Give consumers greater control over their devices;
- Prevent app stores from disadvantaging developers; and
- Establish safeguards to preserve consumer privacy, security, and safety.

Meta’s use of millions of books to train its artificial intelligence models has been judged “fair” by a federal court, in a win for tech companies that use copyrighted materials to develop AI. The case, brought by about a dozen authors, including Ta-Nehisi Coates and Richard Kadrey, challenged how the $1.4tn social media giant used a library of millions of online books, academic articles and comics to train its Llama AI models. Meta’s use of these titles is protected under copyright law’s fair use provision, San Francisco District Judge Vince Chhabria ruled. The Big Tech firm had argued that the works had been used to develop a transformative technology, which was fair “irrespective” of how it acquired the works. Judge Chhabria warned that his decision reflected the authors’ failure to properly make their case. “This ruling does not stand for the proposition that Meta’s use of copyrighted materials to train its language models is lawful,” he said. “It stands only for the proposition that these plaintiffs made the wrong arguments and failed to develop a record in support of the right one.”

The Senate confirmed Paul Dabbar as the Deputy Secretary of the U.S. Department of Commerce in 56-40 vote. In this role, he will serve as the Department’s Chief Operating Officer (COO), overseeing its day-to-day management, a $11.4 billion annual budget, 12 operating units, and 47,000 employees. He is also a member of the President’s Management Council. Most recently, Mr. Dabbar was President and CEO of Bohr Quantum Technology, where he led the development and deployment of technologies for emerging quantum networks.

New Zealand broadband wholesaler Chorus has won the backing of the infrastructure commission for its network upgrade plan—but it still faces a battle for funding. The commission designated Chorus' rural fiber scheme as one of 17 priority projects in its draft National Infrastructure Plan. Chorus CEO Mark Aue said the decision validated the fiber project's economic case and confirmed broadband as "essential national infrastructure." But a spokesperson for the commission—which is formally known as Te Waihanga—cautioned that while it supported the expansion of high-speed broadband it had not endorsed any specific rollout plan or technology.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
© Benton Institute for Broadband & Society 2025. Redistribution of this email publication — both internally and externally — is encouraged if it includes this message. For subscribe/unsubscribe info email: headlines AT benton DOT org
Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-220-4531
headlines AT benton DOT org

The Benton Institute for Broadband & Society All Rights Reserved © 2024


