NTIA rewrites BEAD rules: “the broadband Groundhog Day no one asked for”

The National Telecommunications and Information Administration (NTIA) has overhauled the rules for the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, requiring states to scrap earlier plans and reapply, reigniting uncertainty across the broadband sector, as reported by Fierce Wireless.

The updated notice of funding opportunity (NOFO) eliminates a longstanding preference for fiber networks. Now, any technology capable of delivering speeds of at least 100/20 Mbps with latency below 100 milliseconds qualifies as a “priority broadband project.” The NTIA rescinded prior approvals, affecting states like Louisiana, Nevada, and Delaware, and imposed a new 90-day compliance clock.

The changes expand eligibility to internet service providers deploying fully unlicensed wireless spectrum—previously excluded under Biden-era rules—opening the door for fixed wireless access and low-earth orbit (LEO) satellite players. Blair Levin, Policy Analyst at New Street Research, warns this shift may force traditional wireline providers out of BEAD bidding, empowering LEO firms like Starlink and Amazon’s Kuiper to “cherry pick” deployment areas.

“This is the broadband Groundhog Day no one asked for,” said Alexis Schrubbe, director at the Internet Innovation Initiative. Schrubbe noted states with extensive outreach and community-driven planning now face wasted resources and increased delays.

New guidance also rolls back requirements related to workforce development, affordable pricing, and climate resiliency. While subgrantees must offer at least one low-cost service, NTIA has now prohibited states from dictating specific rates. The Communications Workers of America union criticized the change, saying it undermines states’ ability to build sustainable, well-trained workforces.

States must now prepare for a mandatory second round of subgrantee selection—dubbed “Benefit of the Bargain”—aimed at ensuring the lowest-cost broadband, regardless of technology. Legal challenges from rural carriers and other stakeholders are possible, but with deployments pushed to 2026 or later, delays are likely to continue.