Lutnick

Lutnick Hints at New Application Period for BEAD in Appropriations Testimony

Today, in testimony before the U.S. Senate Appropriations Committee, Secretary of Commerce Howard Lutnick suggested plans to issue a new Notice of Funding Opportunity (NOFO) for the Broadband Equity, Access, and Deployment (BEAD) Program.

Senator Gary Peters (D-MICH) said to Lutnick, “One of Congress’s biggest bipartisan achievements, I think, over the past few years, was the passage of the BEAD program, which gives funds to individual states to connect every citizen to the fastest, the most reliable internet that’s possible.”

Peters told Lutnick the Commerce Department was delaying the project via a 90-day extension for final BEAD proposals, even though “Broadband providers are standing by.”

Peters expressed his concern that with a short construction season in some states — like his home state of Michigan — the Commerce Department is “planning to release new rules that would force states to restart their bidding process and tell states that they can’t choose which are the best performing broadband technologies for their individual community.”

He went on, “Forcing states to start a process over would waste millions of dollars, add months, potentially years of delays to shovel-ready broadband projects that are ready to go this summer.”

Finally, Peters asked: “Do you agree that it would be a huge waste of money and a disservice to Americans who need reliable internet service to restart a bidding and proposal process?”

Lutnick responded by saying “the Biden administration had 30 months [for BEAD] and they did nothing.” He then suggested a new proposal process that would take 90 days.

“We are going to say: within the next 90 days, as long as you are technologically agnostic and you agree to provide the broadband at the cheapest price per user, then we will get it [done: within] 90 days for [the] application and out the door by the end of calendar year 2025.”

“30 months under Biden: no funding. 100% under [the] Trump administration by the end of 2025. That’s impressive.”

Peters responded, “We’d like to have it faster than a 90-day process — the states have been working on this for some time.” He reiterated that Michigan is technology neutral.

“Then it should be easy for them,” Lutnick said. “If they’re technologically neutral, it should go like that,” he added, snapping his fingers.

“Can I work with you to get that done for Michigan?” Peters asked.

“Sounds great, I’m happy to do that for you,” Lutnick responded.

“Great, thank you,” Peters said.

The BEAD Program and its possible changes are a developing story that Telecompetitor is following closely.

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