The era of unchecked broadband bailouts may be over.
National Telecommunications and Information Administration (NTIA) head Arielle Roth has made it clear that Broadband Equity, Access and Deployment (BEAD) funds come with strings attached — no double-dipping allowed on the taxpayers’ dime. It’s a small step that could save taxpayers billions and prevent a repeat of past disasters.
Speaking at a telecom event at the Hudson Institute recently, Roth said that providers must certify to NTIA in writing that they will not require any other federal subsidies to complete or operate their BEAD-funded projects.
“Those unwilling to make that commitment will not get an award,” she said. “Their proposed service areas will instead go to entities that can and will deliver.”
The federal government is dumping $42.5 billion in taxpayer money into the Broadband Equity, Access and Deployment program to bring service to every American, but only if providers play by the rules. When Roth took over, she scrapped many mandates, including the rigid push for fiber, and put the hammer down on double-dipping. Providers chasing these funds now have to ensure they won’t rely on hypothetical future subsidies to get the job done. If they can’t make that simple promise, they don’t get the money. It’s about time someone held these companies accountable.
NTIA clarified that this new rule only applies to projects funded by the Broadband Equity, Access and Deployment program. Companies can still receive existing federal support in other areas, but for BEAD projects, providers must commit not to rely on uncertain future subsidies to get the job done. If they can’t make that guarantee, they won’t see a dime.
The Universal Service Fund, administered by the Federal Communications Commission, is one of the major drivers of federal broadband subsidies, providing up to $9 billion annually to support infrastructure projects. The Enhances Alternative Connect America Cost Model (A-CAM) funds more than $18 billion for 368 operators over 15 years through the FCC.
Roth said she is trying to avoid a repeat of the disastrous Rural Digital Opportunity Fund, which saw more than $3.3 billion in projects going into default, with 2 million locations not receiving the expected broadband.
An analysis by the Benton Institute found that every RDOF-funded location in New Jersey went into default, with California and Massachusetts seeing 94 percent and 88 percent of their awards fail. These failures left millions of Americans without the broadband they were promised. Because the law bars RDOF-funded areas from receiving Broadband Equity, Access and Deployment funds, those communities remain high and dry while taxpayer dollars continue to be wasted. It’s a stark reminder of what happens when accountability takes a back seat.
Roth noted at the Tech Expo in September that such concerns are part of why the NTIA is asking states to lower costs, which will help reduce the risk of defaults. Requiring that BEAD projects not require supplemental funding goes hand-in-hand with that philosophy.
Trump administration policies will save at least $18 billion on broadband infrastructure projects under BEAD. That money will stay with the program unless Congress amends the law. Roth has indicated that states may be able to retain leftover funds and use them to support the program in other ways.
An effort in Congress would require federal agencies that distribute broadband funds to work more closely together. This could help prevent the double-dipping about which Roth has expressed concern.
The PROTOCOL Act, which the Taxpayers Protection Alliance helped craft, would harmonize broadband mapping across federal agencies to ensure each agency has a complete and accurate picture of broadband coverage and funding distribution nationwide. Unfortunately, no action has been taken on the legislation since its introduction.
RDOF showed the immense squandering of taxpayer money that can occur without proper checks and balances. It is a positive development that Roth is attempting to tweak the BEAD program to avoid a recurrence of such waste.
But the work doesn’t stop here. Taxpayer dollars are still on the line, and it will take constant oversight to ensure that these reforms deliver broadband to the millions who need it. Lawmakers, regulators and state officials must hold providers accountable at every stage, from application to deployment, and be ready to cut off funding when projects stall. Otherwise, we risk repeating the same cycle of waste, failed promises and stranded communities.
