As states begin submitting applications for Broadband Equity, Access, and Deployment (BEAD) program funding, U.S. Reps. Cathy McMorris Rodgers (R-WA) and Bob Latta (R-OH) are concerned about state plans that propose using funds in ways that will not provide universal connectivity or that are contrary to law.
The lawmakers called on the National Telecommunications and Information Administration (NTIA) — which is responsible for administering most of the $65 billion Congress provided in 2021 to close the digital divide, including the $42.45 billion for the BEAD program — to ensure states are abiding by the law and using resources to achieve universal broadband and connect every American.
In an Oct. 3 letter sent to NTIA Assistant Secretary of Commerce for Communications and Information Alan Davidson, Rep. McMorris Rodgers, chair of the U.S. House Energy and Commerce Committee, and Rep. Latta, chair of the committee’s Communications and Technology Subcommittee, expressed concerns that some states are seeking to exclude certain technologies from use in the BEAD program or in their definition of a served location.
Ohio and Vermont, for example, plan to consider locations served by fixed wireless as unserved, even though NTIA includes forms of this technology as a reliable broadband service, they wrote, adding that the Infrastructure Investment and Jobs Act (IIJA) requires the BEAD program to use all available technologies.
“Thus, if a state is following the law and remaining technology-neutral, there is no excuse for it to assert it lacks sufficient funding to serve every household following this program,” wrote the lawmakers. “Congress provided a record amount of funding for the BEAD program, so it is frustrating to hear states claim that this is not enough money or try to exclude certain technologies that will help them achieve universal connectivity. This massive investment in broadband will not come again, nor should it be necessary.”
Additionally, the members are concerned by some states’ efforts to regulate the cost of broadband plans, which is prohibited under the IIJA.
Virginia, for example, asks providers to keep the cost of gigabit symmetrical service “at or below $100 per month, inclusive of all taxes, fees, and charges billed to the customer,” in order to receive full credit for affordability under its scoring system. Louisiana includes a similar requirement, according to their letter.
“The IIJA explicitly prohibits NTIA from engaging in rate regulation. Although it is the states setting these rates, we view NTIA’s approval of such plans to be NTIA regulating rates in violation of the IIJA,” they wrote. “We expect the Biden administration to abide by Congress’ clear prohibition.”
Rep. McMorris Rodgers and Rep. Latta told Davidson to affirm in writing by Oct. 17 that he will not approve a state plan that does not achieve universal connectivity using its BEAD allocation or a state plan that sets rates for broadband plans.