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Trump administration throws wrench into $42 billion broadband rollout

June 13, 2025
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The massive image: In a sudden coverage shift, the Trump administration has thrown a wrench into the nation’s largest broadband growth effort, forcing states to overtake plans to distribute $42 billion in federal funding geared toward closing the digital divide.

Secretary of Commerce Howard Lutnick has put the Broadband Fairness, Entry, and Deployment (BEAD) program on pause, unveiling sweeping new guidelines final week that require states to rethink how they allocate grants to Web service suppliers. The transfer has left state officers scrambling to adapt, erasing months – generally years – of preparation.

“We had been in place to be making awards this month, however for [the Trump administration’s] deliberations and program adjustments, so it is fairly unlucky,” Andrew Butcher, president of the Maine Connectivity Authority (MCA) instructed Ars Technica. The MCA, established by a 2021 state regulation, leads Maine’s BEAD planning and different broadband initiatives.

The timing couldn’t be worse. “That is the development season,” Butcher defined. “We deliberate it in order that tasks would be capable of prepare with their pre-construction actions and their development actions starting in the summertime, so they’d have all summer time and thru the autumn and early winter to get in movement.” Now, the Nationwide Telecommunications and Info Administration, which oversees BEAD, has delayed the method till at the very least late fall or early winter.

The BEAD program, created underneath the Biden administration, was designed to prioritize fiber-optic infrastructure, thought-about the gold customary for high-speed, dependable Web. Over the previous three years, federal officers developed detailed guidelines and reviewed plans from each state and territory. In Maine, that meant analyzing which houses and companies lacked sufficient service and alluring suppliers to bid on tasks. Now, that work should be redone.

The Trump administration’s adjustments do not cease at BEAD. Just lately, President Trump eradicated a separate $2.7 billion grant program established by the Digital Fairness Act of 2021, which was set to supply Maine with $35 million for applications like digital abilities coaching, STEM training, and telehealth entry.

A serious level of rivalry has been the Biden administration’s choice for fiber networks. Lutnick and different Republicans argued that mounted wi-fi and satellite tv for pc suppliers, reminiscent of Starlink, ought to have equal entry to grant funding. The NTIA’s new guidelines require states to conduct a further “Advantage of the Discount Spherical” of their choice course of, giving non-fiber suppliers a greater probability to compete for grants.

As states like Maine race to retool their methods, the way forward for America’s broadband growth hangs within the stability. For now, officers are left to compress years of planning right into a matter of weeks, hoping that the promise of common connectivity can survive one other spherical of political upheaval.



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