Election Impact: BEAD and Digital Equity


The Trump administration does not officially begin until January 20th, but we are already
seeing proposed changes from administration allies. I write today to describe two of those
proposals — both from Senator Ted Cruz of Texas, the current ranking member and
(likely) soon-to-be chair of the United States Senate Committee on Commerce, Science,
and Transportation. Given his jurisdiction over NTIA, these proposals should be taken
seriously

Digital Equity Act

On November 21, Sen. Cruz sent a letter to the NTIA asking the agency to pause the
$1.25 billion Digital Equity Competitive Grant Program. Sen. Cruz argues that NTIA
has made the Competitive Grant Program unconstitutional because it will “consider the
race of the Program’s beneficiaries when issuing grant awards.” Sen. Cruz is referring to
the fact that, by law, the NTIA is required to evaluate grant applications based on how well
they serve certain “covered populations,” i.e. rural residents, veterans, aging individuals,
low-income individuals, incarcerated individuals, individuals with disabilities, individuals
with language barriers, and, indeed, racial and ethnic minorities. Because these covered
populations are disproportionately affected by the digital divide, the Bipartisan
Infrastructure Law directed the NTIA to consider them when implementing the Competitive
Grant Program.

Some context for Missouri:

  • In Missouri, roughly 80% of the state is considered a “covered population.” This is in line with the national average.
  • The Competitive Grant Program received over 700 applicants during its first round. Among them were some good applications from Missouri!
  • The program at issue—the Competitive Grant Program—is strictly a federal program and separate from Missouri’s Digital Opportunity Grant Program. While the two programs are similar, Sen. Cruz has not (yet) taken any action against such state-run programs.
BEAD

On November 21, Senator Cruz sent an additional letter to NTIA encouraging them
to pause the $42.45 billion BEAD program. To paraphrase the letter, Sen. Cruz argues
that the NTIA has saddled the BEAD program with an extreme technology bias toward
fiber, illegal rate regulation, unionized workforce and DEI labor requirements, climate
change assessments, excessive per-location costs, and central planning mandates.
However, these aspects of BEAD are rooted in the Bipartisan Infrastructure Law itself, not
NTIA regulation. As such, NTIA is legally required to implement them.

Some context for Missouri:

  • Missouri will soon open its BEAD application window. If the changes Sen. Cruz is suggesting are implemented, that could complicate (to say the least) the results of that process. However, given the progress in Missouri and across the country, it is unclear how or if the next administration would change course. At least one state has completed the BEAD application process and will soon have plan for “provisional awards,” and another four states have finished taking grant applications.
  • BEAD fund allocations have been “obligated” to Missouri and others states, and some have already been expended. This may make it difficult for the next administration to significantly change course.
  • FCC Commissioner Brendan Carr has agreed with Sen. Cruz about BEAD. To be clear, the FCC has no jurisdiction over BEAD, but Commissioner Carr is President-elect Trump choice to chair the FCC, and he is close to Elon Musk, who co-leads Trump’s D.O.G.E. advisory entity and whose company, Starlink, stands to benefit from a relaxation of BEAD’s fiber-preference.
Next Steps

In summary, we do not know what will happen, but we can continue to advocate for
“broadband for all.” What can we do? Here are my plans, and please let me know if you
have thoughts:

  • Show Me Broadband should send a letter to NTIA asking them to “Stay the Course Toward Digital Equity” and get the Competitive Grant applications reviewed and awarded expeditiously.
  • Show Me Broadband should send a letter to our Missouri federal legislators encouraging them to support the BEAD and Digital Equity Programs. If any of you are interested, Show Me Broadband can provide you with a sample letter that you may use to share with the legislators as well.