In the June 11, 2025 issue of the ICORE Blog we reported on a NTIA Policy Notice related to the BEAD Program. The Notice announced that NTIA had completed a comprehensive review of the BEAD Program designed to remove unnecessary rules and mandates in order to improve the efficiency of the Program and to introduce a more technology neutral approach to the process. Extensive changes to the original BEAD Notice of Funding Opportunity in the areas of technology, labor and work force development, climate change requirements, net neutrality requirements, and other areas were outlined in the NTIA Policy Notice. The NTIA Policy Notice required all Eligible Entities (States and Territories) to conduct at least one additional subgrantee selection round referred to as the Benefit of the Bargain Round consistent with the BEAD Program changes outlined in the Policy Notice. In addition, Eligible Entities were required to rescind all previous awards of funding and to notify applicants that a further round of applications will be held. Eligible Entities were given 90 days from the June 6, 2025 date of the Policy Notice to comply with the Policy Notice’s obligations and to submit a Final Proposal that reflects the results of the Benefit of the Bargain Round.
On July 21, 2025, NTIA announced that all Eligible Entities in 56 States and Territories have received approval to their updated Initial BEAD Proposals consistent with the Policy Notice and can now begin conducting the Benefit of the Bargain round of subgrantee selection. Eligible Entities now have until September 4, 2025 to submit a Final Proposal that reflects the results of at least one Benefit of the Bargain Round. NTIA will complete its review of each Final Proposal within 90 days of submission.
In a related development, on July 22, 2025, 22 Democratic members of the U.S. House of Representatives sent a letter to Secretary of Commerce Howard Lutnick expressing their concerns to the significant changes to the BEAD Program reflected in the June 6, 2025 NTIA Policy Notice. The members opined that despite the stated goal of the Policy Notice to remove burdensome requirements from the BEAD Program, the Public Notice further complicates and delays the program for all stakeholders violating Congressional intent. Further the letter states that forcing Eligible Entities to rewrite entire program criteria and re-run subgrantee selection rounds in less than 90 days is an unfair and unrealistic expectation. The letter is particularly critical of the Policy Notice’s changes in the area of broadband technology. The members voice support for the original BEAD Program’s preference for fiber optic technology as the only technology that is consistent with the definition of “priority broadband project” which gives precedence to technologies that are the most reliable, scalable, and capable of meeting evolving connectivity needs. Instead, they suggest that the Policy Notice forces Eligible Entities to award grants to the cheapest applicant, not the best applicant. The letter also alleges that the Policy Notice contradicts Congress’ mandate for the states to determine the low-cost broadband service option but based on the Policy Notice only a subgrantee can propose a low-cost broadband service option.
It’s difficult to determine what effect the House Members letter will have on the BEAD Program Process. This especially true given the NTIA announcement discussed above that all 56 Eligible Entities have in fact received NTIA approval of their updated BEAD Proposals and can now proceed to the Benefit of the Bargain Round. We will continue to monitor this issue and will provide updates as mor information becomes available.
