A federal program to boost broadband — a necessary component of startup founders and users ability to access the startup ecosystem — in states across the country is facing headwinds and delays as policymakers move the goalposts and risk making progress on closing the digital divide.
The Broadband Equity, Access, and Deployment (BEAD) Program, a key initiative under the 2021 Infrastructure Investment and Jobs Act (IIJA), aims to close gaps in access to high-speed Internet across the country. The $42.5 billion allocation supports the deployment of broadband infrastructure to expand service under the supervision of the National Telecommunications and Information Administration (NTIA).
For startups in underserved or rural areas, the BEAD Program offers an opportunity to access fast, affordable broadband essential for running and scaling their businesses. Expanding reliable Internet access to entrepreneurs — and users — in every corner of the U.S. enables them to fully engage in the innovation ecosystem. By closing existing connectivity gaps, the BEAD Program helps level the playing field for startups and small businesses.
While the BEAD Program has faced criticism for its slow rollout, it remains largely on track with the timeline set by the IIJA. The deployment process began with states and territories developing detailed initial proposals to expand broadband in areas with limited or no connectivity. After receiving planning funds and completing a challenge process to verify eligible locations, states select Internet service providers (ISPs) and submit final proposals. Currently, all states have approved initial proposals, and many are now selecting ISPs or finalizing their deployment plans.
However, new roadblocks now threaten to delay the program’s progress and directly impact startups in underserved regions. On Tuesday, the NTIA announced a 90-day extension for states to submit their finalized deployment plans. This delay is not intended to benefit BEAD applicants but to give the Trump Administration time to review and revise the program’s guidelines. Last month, Commerce Secretary Howard Lutnick announced plans to revise the Program primarily by allowing more funding to go to satellite ISPs.
A key debate regarding the BEAD Program is whether to prioritize wireline broadband (fiber-optic cables) or wireless broadband (Low Earth Orbit (LEO) satellites). Fiber offers fast, reliable, and secure Internet, while satellites can reach remote areas where fiber is difficult or impossible to install but often at the cost of slower speeds and higher latency. To complicate matters, Elon Musk’s Starlink will likely receive up to $20 billion under proposed changes.
Another call for change comes with the Streamlining Program Efficiency and Expanding Deployment (SPEED) for BEAD Act introduced last month. This bill seeks to rename BEAD to the Broadband Expansion, Access, and Deployment Program, which replaces “equity” with “expansion.” The legislation also focuses on using LEO satellites over fiber broadband and eliminating fair labor practices, climate change resiliency, and rate regulation requirements. Removing the equity provisions could undermine efforts to provide affordable and inclusive broadband access critical for startups and small businesses.
With the extension, potential rule changes, and proposed legislation, states risk being stuck in limbo due to the uncertainty around program revisions that would force states to revise their broadband infrastructure plans. A bipartisan group of 115 state legislators from 28 states sent a letter to Lutnick urging the NTIA to allow the BEAD Program to continue without delay. They requested that any program changes be optional and cautioned that revisions could undo years of planning and delay deployment by more than a year. For startups, these delays could further postpone access to broadband infrastructure.
The recent uncertainties and proposed changes regarding the BEAD Program are raising concerns about how broadband infrastructure will be rolled out in underserved areas. It is critical that the program stay focused on delivering reliable, affordable, and equitable Internet access. At the same time, other essential broadband initiatives are also at risk. The Supreme Court is reviewing the constitutionality of the Universal Service Fund, and the Affordable Connectivity Program, which helped over 23 million low-income households, has run out of funding. As the debate continues, high-speed broadband is key to further expanding access to the innovation ecosystem. Policymakers must prioritize maintaining and expanding broadband affordability and accessibility to ensure startups and future innovators are not left behind.
Engine is a non-profit technology policy, research, and advocacy organization that bridges the gap between policymakers and startups. Engine works with government and a community of thousands of high-technology, growth-oriented startups across the nation to support the development of technology entrepreneurship through economic research, policy analysis, and advocacy on local and national issues.
