On June 6, 2025, the Commerce Department issued new guidance in the $42.5 billion Broadband, Equity, Access and Deployment (BEAD) program. The guidance, titled the “BEAD Restructuring Policy Notice,” introduces many significant changes to the broadband deployment subsidy program, most notably:
- States must opt-in to the new provisions of the guidance, which may spark intense lobbying efforts in state capitols from various stakeholders over the coming month. The guidance asks states to make their decision by July 7, 2025.
- States that opt-in are required to rescind all provisional subgrantee selections and initiate a new, open selection process. This process must treat all broadband technologies equally and prioritize the lowest cost project proposals, which will benefit fixed wireless and Low Earth Orbit (LEO) satellite projects over fiber projects.
- Prior approvals for non-deployment activities have been rescinded, and funding for allowable non-deployment activities is now under review. Taken in combination, these steps create uncertainty about the ability of states to access that portion of their BEAD allocation remaining after deployment activities.
- The guidance relieves states and internet service providers from all non-statutory program requirements related to affordability, labor and workforce, and climate resiliency, with the goal of enhancing participation in the program and competition for deployment dollars.
- The guidance also includes specific requirements for deployment subgrant agreements with LEO providers, which are largely consistent with previous guidelines, though some differences are noted.
- States opt-ing into the guidance have 90 days from the release of the guidance to submit Final Proposals that align with the new provisions.
For a comprehensive summary of the key provisions, please refer to our client alert.