The Trump Administration Is Trying To Steal $21 BIllion Earmarked For Better Broadband

from the another-day-in-paradise dept

A quick refresher: there was originally $42.5 billion in broadband grants headed to the states thanks to the 2021 infrastructure bill most Republicans voted against (yet routinely try to take credit for among their constituents).

But after taking office this second time, the Trump administration rewrote the grant program’s guidance to eliminate provisions ensuring the resulting broadband is affordable to poor people, and to ensure that Elon Musk and Jeff Bezos gets billions in new broadband subsidies for their fledgling satellite broadband networks.

Money given to Bezos and Musk is money not spent on better, faster, local fiber optics (especially popular community owned networks). A serious broadband policy would ensure that open access fiber is the priority, followed by wireless, with satellite filling the gaps. Satellite was never intended to be the primary delivery mechanism for broadband, because of obvious congestion and capacity constraints.

The Trump NTIA is doing all of this under the pretense that giving taxpayer money to billionaires (for satellite service they already planned to deploy) instead of spending it on high quality fiber is “saving taxpayers money.” That’s generally resulted in widespread delays for this BEAD (Broadband, Equity, Access and Deployment) program, despite Republicans spending much of last election season complaining this program was taking too long.

The Trump NTIA hijacking of the program has also created a $21 billion pool of “non deployment funds” made up of the fake savings Republicans claim they created by screwing up the program. There’s a looming fight emerging over what happens to that money. Congress and the infrastructure law specifically states this money is supposed to be dedicated to expanding broadband access.

States would obviously like to use this money either for broadband, or for local infrastructure. But you get the sense that this giant wad of cash is very tempting for the Trump administration to just hijack and use as an unaccountable slush fund, doled out to its most loyal red state allies (or just kept by the “Treasury”).

After delays and excuses extended in to last summer, the Trump NTIA was supposed to provide guidance for states on how this money could be used earlier this month, but has been a no show:

“Under pressure from senators at an appropriations hearing, Commerce Secretary Howard Lutnick last month sought to calm fears when he said that so-called “non-deployment” funds under the Broadband Equity, Access and Deployment, or BEAD, program would not be rescinded.

But with no guidance so far from the department’s National Telecommunications and Information Administration, which was expected but delayed this week, lawmakers and others are pushing to have their voice heard on exactly how states will be able to use the $21 billion pot of money.”

It’s not clear if states can trust the word of Lutnick (who’s been a little distracted by Epstein allegations). The Trump administration has threatened (quite illegally) to withhold BEAD funding entirely from states that attempt to stand up to telecom monopolies or insist that taxpayer-funded broadband is affordable. There were also several initiatives to withhold BEAD funds if states tried to regulate AI.

Unsurprisingly, many states are afraid to be honest about what a cock up this whole hijacking has been in the press for fear of losing billions in potential (and already technically awarded) funding.

There’s a real potential here that taxpayer money that was originally earmarked for future-proof, ultra-fast fiber network is going to be repurposed into a general free for all slush fund that gets redirected to whoever praises the Trump administration the most. And I wouldn’t be surprised that this ultimately results in state lawsuits against the federal government for redirecting funds.

“I think the state officials who think they’re going to be made whole, need to reread the Merchant of Venice, because [NTIA boss Arielle] Roth is coming for her pound of flesh,” Sascha Meinrath, Palmer Chair in Telecommunications at Penn State University, told me in an email. “I wouldn’t be at all surprised if it’s operationalized in a way to directly target or disadvantage blue states — whether in what it does, or what’s tied to the acceptance of the funding.”

One last side note: last election season the “abundance” folks like Ezra Klein spent ample time parroting GOP criticism of the admitted delays and problems with this BEAD program (ignoring why the program took so long, as well as other examples of similar broadband grant programs from the same year doing well) as an example of a Democratic bureaucratic dysfunction.

But I’ve noticed that since Trump hijacked the program, introduced massive delays, redirected billions to billionaires, and even tried to run off with half the funding, the subject hasn’t been revisited by Klein since. Quite generally (since infrastructure just doesn’t get those clicks) the press coverage of this whole mess has ranged from nonexistent to positively tepid.

Filed Under: bead, broadband, elon musk, fiber, ntia, satellite, taxpayers, telecom