Big Story: Broadband program hits new roadblocks
Federal funding for broadband deployment is being held up as policymakers delay and consider changes to a program aimed at closing the digital divide. Delays in broadband funding will have long-term consequences for founders, future innovators, and Internet users by limiting their access to affordable, high-speed Internet. Policymakers must prioritize access to broadband accessibility to ensure the innovation ecosystem remains open and accessible to all.
Since President Trump took office, states have been bracing for major changes to the Broadband Equity, Access, and Deployment (BEAD) Program—a $42.5 billion initiative aimed at expanding broadband access across the U.S. and originally passed under the 2021 Infrastructure Investment and Jobs Act. In a new blog post this week, Engine explored how these potential revisions could disrupt broadband deployment efforts, especially in underserved or rural areas. The National Telecommunications and Information Administration (NTIA)—under U.S. Secretary of Commerce Howard Lutnick—issued a 90-day extension to “improve efficiency” and adopt a “technology-neutral” standard. Meanwhile, legislation like the Streamlining Program Efficiency and Expanding Deployment (SPEED) for BEAD Act, introduced by Rep. Richard Hudson (R-N.C.), similarly places more emphasis on satellite broadband—which would shift funding toward satellite Internet providers including Elon Musk’s Starlink—and proposes removing requirements such as fair labor practices and rate regulation.
These shifts could limit the BEAD Program’s effectiveness in providing affordable, reliable, and inclusive broadband access, which is critical for startups and small businesses. With the potential changes, states may be forced to revise or delay carefully developed broadband deployment plans. In response, a bipartisan group of legislators from 28 states has already urged the NTIA to allow states to move forward without disruption to the years of planning. Policymakers should continue to work towards closing the digital divide and maintaining BEAD’s original commitment to affordable broadband policies accessible to all startup innovators.
Policy Roundup:
California governor weighs in on AI rulemaking. Governor Gavin Newsom (D) urged the California Privacy Protection Agency to avoid regulations that could harm the state’s AI ecosystem, warning of unintended consequences for innovation. The Governor’s letter echoed many of the concerns Engine earlier highlighted in comments to the agency that demonstrated the overbreadth of the draft regulations and harm they would inflict on startups if adopted.
Student loan repayments resume. The Department of Education officially lifted the pause on federal student loan collections Monday, with borrowers in default facing wage garnishment and other penalties starting May 5. Student debt remains a major barrier to entrepreneurship, and without affordable repayment options, fewer would-be founders can take the risk of joining the startup ecosystem.
White House eyes AI in K–12 classrooms. President Donald Trump signed an executive order this week directing federal agencies to integrate AI into K–12 education by funding teacher training, student literacy programs, and public-private partnerships. Enhancing AI education will help strengthen the talent pipeline and bolster AI innovation.
EU fines likely to play into trade conflict. The European Union issued its first fines under the Digital Markets Act on Wednesday, targeting Apple and Meta with nearly a billion dollars in fines that both companies are expected to appeal. The White House called the fines “economic extortion,” which come amidst an ongoing trade conflict that is impacting companies of all sizes.
SCOTUS denies challenges to Section 101. On Monday, the Supreme Court declined to hear several patent cases, including two challenging patent eligibility under Section 101, which defines what constitutes a patentable subject matter. These denials preserve the current eligibility framework, which is critical for preventing vague and overly broad patents. Maintaining Section 101 helps protect startups from abusive patent litigation and ensures they can defend against low-quality patent claims.
On the Horizon:
TUE 4/29: The House Oversight and Accountability subcommittee on economic growth, energy policy, and regulatory affairs will convene a hearing to discuss how federal policies are impacting U.S. manufacturing and economic competitiveness at 11:00 AM ET.
TUE 4/29: The House Oversight and Accountability subcommittee on cybersecurity, information technology, and government innovation will convene a hearing to discuss government efficiency through technology support and services at 2:00 PM ET.
WED 04/30: The Energy and Commerce subcommittee on energy will convene a hearing to discuss legislative proposals to secure reliable U.S. energy and power future innovation at 10:15 AM ET.
TUE. 5/06: The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee will convene a hearing to discuss the rules and regulations affecting emerging fund managers, as well as the barriers small companies face under federal securities laws at 10:00 AM ET.
Startup Roundup:
#StartupsEverywhere: San Francisco, California. As AI continues to be at the forefront of innovation, Daniele Bernadi, the CEO of Toolhouse AI, is making the technology accessible for all. Using his background in computer science and developer relations, he is working to drive positive change in the AI space. We sat down with Daniele to discuss his company, the AI regulatory landscape, and more.
