Broadband Equity, Access, and Deployment (BEAD) Program: Issues and Congressional Considerations

Broadband Equity, Access, and Deployment (BEAD) Program: Issues and Congressional Considerations

June 15, 2023
Broadband Equity, Access, and Deployment (BEAD) Program:
Issues and Congressional Considerations
Congress appropriated $42.45 billion to the National
inaccurate map data may lead to inaccurate funding
Telecommunications and Information Administration
allocations.
(NTIA) to administer the Broadband Equity, Access, and
Deployment (BEAD) Program established under the
The Broadband DATA Act and IIJA require the FCC to
Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58),
allow stakeholders to challenge the National Broadband
which became law in November 2021. The BEAD Program
Map’s accuracy (e.g., missing locations, over- or
is the single largest federal broadband investment to date.
understated broadband availability) on a rolling basis and
update the map to reflect resolved challenges. The FCC
Congress directed NTIA in the IIJA to make grants to 56
released the May 2023 version that reflects broadband
states and territories (hereinafter “states”) “to bridge the
availability data as of December 31, 2022 (as reported by
digital divide” by facilitating “access to affordable, reliable,
ISPs on March 1, 2023), with 75% of challenges to the
high-speed internet” throughout the United States,
previous version for over four million locations resolved.
particularly in “communities of color, lower-income areas,
and rural areas.” NTIA anticipates issuing notices to each
NTIA anticipates using the May 2023 map, which identifies
state of the estimated BEAD amount available to it by June
roughly 8.3 million unserved locations nationwide, as the
30, 2023, followed by approximately four years of grant
basis to announce state BEAD allocations by June 30, 2023.
disbursement and program implementation.
Some Members of Congress have urged NTIA to wait to
determine allocations until the FCC resolves the remaining
After notices are issued, states have 180 days to submit an
challenges. They noted that some states were unable to
initial proposal to NTIA requesting a disbursement of at
challenge the map accuracy in time for the last iteration.
least 20% of its estimated amount. As mandated by the
IIJA, the state also needs to resolve all challenges to its
NTIA has argued, on its website, that only an extremely
determination of funding eligibility of locations within its
large change in the number of unserved locations within a
jurisdiction before it can allocate grant funds for broadband
state relative to the national total would have a significant
deployment projects. According to NTIA’s timeline, the
impact on BEAD funding allocations, something it deems
first batch of grant funds from states to supported projects
unlikely. NTIA has noted that in addition to the challenge
and activities could occur by 2024.
process for the FCC map, the IIJA requires each state to
develop its own challenge process before it can distribute
Due to the size of the program, Congress may consider
BEAD funding, providing another opportunity for
oversight of NTIA’s implementation of the BEAD program
stakeholders’ challenges. In April 2023 proposed guidance,
and its progress toward achieving the stated goal of
NTIA indicated that, with its approval, states may modify
addressing the digital divide. This In Focus discusses three
the set of locations eligible for BEAD funding based on
issues for potential congressional consideration: (1)
data gathered and verified through the state challenge
determining unserved locations for BEAD funding
process, in which local stakeholders can challenge whether
allocations, (2) connectivity technologies eligible for
a particular location within a state is eligible for a BEAD
BEAD funding, and (3) BEAD’s relationship to other
sub-grant, including whether the location is truly unserved.
federal broadband programs.
Connectivity Technologies Eligible for
Determining Unserved Locations
BEAD Funding
The IIJA directs NTIA to calculate a state’s share of BEAD
The IIJA requires a funded BEAD project to deploy
funding using the state’s share of unserved locations
broadband service that provides: (1) at least 100 Mbps
nationally—those locations without access to reliable
download and 20 Mbps upload speeds (100/20 Mbps), (2)
broadband service with a speed of at least 25 megabits per
latency sufficiently low for real-time, interactive
second (Mbps) for downloads and 3 Mbps for uploads and a
applications, and (3) network reliability of no more than 48
low latency (lag). The law further directs NTIA to
hours of outage time over any 365-day period.
determine the number of unserved locations using the
Federal Communications Commission’s (FCC’s) National
In its Notice of Funding Opportunity (NOFO) issued in
Broadband Map. The FCC released a preproduction version
May 2022, NTIA indicated that an eligible deployment
of the map in November 2022, pursuant to the Broadband
project shall provide a location with qualifying broadband
DATA Act (P.L. 116-130), using broadband availability
service—reliable broadband service of at least 100/20 Mbps
data reported by internet service providers (ISPs). Some
speed and up to 100 milliseconds latency. NTIA defines
stakeholders, including Members of Congress and state
reliable broadband service as being provided by the
governments, were concerned that incomplete and
following technologies: fiber-optic, cable modem, hybrid
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Broadband Equity, Access, and Deployment (BEAD) Program: Issues and Congressional Considerations
fiber-coaxial, digital subscriber line, terrestrial fixed
Considerations for Congress
wireless utilizing licensed or a hybrid of licensed and
After NTIA allocates state funding, each state is responsible
unlicensed spectrum. When selecting awardees among
for developing a five-year action plan and a competitive
competing eligible deployment proposals, NTIA directs
process to award funds, following the law and with NTIA’s
states to consider priority broadband projects first—those
approval. Approving and overseeing 56 unique BEAD
that provide service via end-to-end fiber-optic technology.
programs in states and eligible territories, while ensuring
the effectiveness of allotted funding and compliance with
If a fiber project’s projected cost is extremely high (a
all statutory requirements, may prove an administrative
threshold established by each state), the state may fund
challenge for NTIA.
deployment projects using an alternative technology that
supports reliable broadband service. If no less costly
Congress has various options if it chooses to monitor or
solution is available, NTIA allows states to select a project
take other action on the progress of NTIA, the FCC, state
using the best available technology for the location served
broadband offices, local communities, and other
by the project, as long as that technology is otherwise able
stakeholders toward meeting the objectives of the BEAD
to provide a qualifying service.
program. Such options could include:
Some Members of Congress have stated that Congress
• Requesting regular updates from NTIA and other related
intended the BEAD program to be technology-neutral by
agencies through continuing oversight efforts, such as
not specifying the type of connectivity technology in the
hearings and reports, to ensure adequate distribution of
IIJA, and thus expressed concern that NTIA’s rules
BEAD funding and that all locations qualifying for
prioritizing fiber may exclude some adequate technologies
BEAD funding are identified and serviced;
from BEAD eligibility and may unnecessarily increase
deployment costs. Other Members agree with NTIA’s
• Asking NTIA to review its prioritization of end-to-end
assertion that fiber provides a high-quality, scalable, and
fiber technology in light of potential evidence of
long-term solution for expanding broadband access.
deployment delays or higher-than-expected proposal
costs; and
Avoiding the Double Dip
In addition to the BEAD Program, the FCC, the U.S.
• Amending provisions in the IIJA to provide states with
Department of Agriculture (USDA), and the Department of
additional mechanisms to challenge NTIA’s
the Treasury administer large broadband deployment
determination of BEAD allocations, clarify
programs. To put BEAD funding in perspective, its one-
congressional intent on technology neutrality and other
time appropriation of $42.45 billion for FY2022 is
matters, and establish more specific reporting,
approximately equal to the total disbursement from the
evaluating, and tracking requirements, to ensure that
FCC’s Universal Service Fund (USF) for its High Cost
NTIA effectively and efficiently carries out its mission.
Program for the previous nine years ($41.75 billion in
2013-2021). According to a May 2022 Government
Any legislation addressing BEAD implementation and
Accountability Office (GAO) report, there are more than
oversight could be included in an NTIA reauthorization act.
100 broadband funding programs across 15 federal
NTIA was last authorized in FY1993. Information and
agencies, with BEAD the newest and largest one. Prior to
communication technologies and the telecommunications
the establishment of the BEAD Program, federal agencies
sector have changed tremendously in the last three decades,
spent $44 billion for broadband-related programs from
the agency’s responsibilities and roles have evolved, and its
FY2015 to FY2020.
budget has increased substantially. Congress may seek to
modernize the agency and reposition its policy priorities—
Given the magnitude, complexity, variety, and scope of
for example, updating NTIA’s original authority of
these programs, collecting, sharing, and tracking data
coordinating “federal telecommunications assistance to
among agencies to avoid funding duplication has been
[s]tate and local governments” to reflect the agency’s
challenging. Some Members have called for a review of the
expanding role of administering and coordinating federal
overlapping and fragmented federal efforts to fund
broadband investments through the BEAD and other
broadband deployment, particularly with regard to BEAD
programs.
and other newly created broadband programs.
For more information, see CRS Report R47075, The
To avoid BEAD funding duplication, NTIA directs each
National Telecommunications and Information
state not to treat any location as unserved that already
Administration (NTIA): Current Roles and Programs; and
received other federal, state, or local broadband deployment
CRS In Focus IF12298, FCC’s National Broadband Map:
funding, even if broadband service has not commenced.
Implications for the Broadband Equity, Access, and
The IIJA requires all agencies that support broadband
Deployment (BEAD) Program.
deployment (except the FCC’s USF programs) to provide
data to NTIA, so it can adequately track construction of
Ling Zhu, Analyst in Telecommunications Policy
broadband infrastructure using federal funds.
IF12429

https://crsreports.congress.gov

Broadband Equity, Access, and Deployment (BEAD) Program: Issues and Congressional Considerations

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https://crsreports.congress.gov | IF12429 · VERSION 1 · NEW