On April 23, 2025 the National Telecommunications and Information Administration (NTIA) announced that it was undertaking a comprehensive review of the BEAD Program (see ICORE Blog dated 4/30/25). The goal of the review was to remove unnecessary rules and mandates in order to improve the efficiency of the BEAD Program and to introduce a more technology-neutral approach to the process. In anticipation of changes to the Program, NTIA announced at that time a 90-day extension of the Program’s deadline for State’s and Territories to submit their Final Proposal. NTIA has now completed its review and on June 6, 2025 NTIA issued a Policy Notice outlining extensive changes to the Program as originally defined in the BEAD Notice of Funding Opportunity (NOFO). The following are the major changes to the NOFO requirements as detailed in the Policy Notice:
* Technology Neutrality – The NOFO limited priority broadband projects to those using end-to-end fiber technology. The Policy Notice eliminates that preference and allows Eligible Entities (States, Territories) to select from all qualifying technologies including fiber, cable modem/hybrid fiber-coaxial technology, LEO satellite services, and terrestrial fixed wireless technology.
* Labor, Employment, and Workforce Development – NTIA eliminates many requirements in the NOFO related to labor, employment and workforce development stating that these diversity, equity, and inclusion requirements disadvantage both workers and providers, drive up costs, and undermine broadband buildout, especially in rural communities that the BEAD Program is intended to help.
* Climate Change Requirements – NTIA eliminates the burdensome obligations to conduct climate analyses. Instead, NTIA guidance will focus on broadband infrastructure by requiring subgrantees to establish risk management plans that account for technology infrastructure reliability and resilience including from natural disasters (e.g. wildfires, flooding, tornadoes, hurricanes, etc.), as well as cybersecurity best practices.
* Net Neutrality Requirements – The requirements detailed in the NOFO related to open access and net neutrality are eliminated. Specifically, NTIA eliminates the Consumer Protections section of the NOFO that required Eligible Entities to ensure that subgrantees do not impose data caps or impose unjust or unreasonable network management practices.
* Local Coordination and Stakeholder Engagement – NTIA eliminates the requirement on Eligible Entities to consult with special interest groups, including representatives of demographic and identity-based organizations.
* Municipal Broadband Providers – NTIA eliminates the requirement that Eligible Entities favor participation of non-traditional broadband providers such as municipalities or political subdivisions, which NTIA believes risks directing funding to less capable providers.
* Backdoor Rate Regulation – The Policy Notice states that NTIA will not accept a Final Proposal from an Eligible Entity that proposes a low-cost service option with a specific defined rate level and instead requires Eligible Entities to permit providers to propose their existing, market driven low-cost plans to meet the statutory low-cost requirement. The requirement that Eligible Entities have a middle-class affordability plan is eliminated.
* Environmental Reviews – NTIA will require the use of an NTIA developed tool to streamline the broadband permitting process. The Environmental Screening and Permitting Tracking Tool (ESAPTT) is designed to accelerate the permitting process timelines by several months and will be utilized by all Eligible Entities participating in the BEAD Program.
The above provides a summary of the extensive changes to the BEAD program as a result of NTIA’s comprehensive review and as detailed in the June 6, 2025 Policy Notice. NTIA is requiring that Eligible Entities must conduct at least one additional subgrantee selection round for BEAD eligible location. The Policy Notice refers to this as the “Benefit of the Bargain Round”. The Benefit of the Bargain Round(s) must permit all applicants, regardless of the technology employed or prior participation in the program, to compete on a level playing field. All subgrantee selection processes in the future must comply with the terms of the Policy Notice. In addition, Eligible Entities must rescind all previous awards of funding and notify applicants that a further round of applications will be considered before final awards are made. Eligible Entities have 90 days from the date of the Policy Notice to comply with the Notice’s obligations and to submit a Final Proposal that reflects the results of the Benefit of the Bargain Round. NTIA will complete its review of each Final Proposal within 90 days of submission.
The BEAD Program application and approval process has been ongoing for some time and many Eligible Entities were well down the road toward Final Approval of their BEAD Plans based on previous guidance contained in the NOFO. The extensive changes required by the Policy Notice will require significant efforts on the part of Eligible Entities to review and modify their BEAD Plans to comply with the new guidance in the Policy Notice including conducting an additional subgrantee selection round all within the next 90 days. It would not be at all surprising to see requests from Eligible Entities for additional time beyond 90 days to complete this task. In the meantime, the yet to be delivered benefits envisioned from the BEAD Program are on hold.
