Majority of BEAD money may not hit until 2026

Oct 1, 2024 at 6:07 PM

Navigating the BEAD Funding Maze: When Will the Money Start Flowing?

The upcoming Broadband Nation Expo will feature a panel discussion on the highly anticipated Broadband Equity, Access, and Deployment (BEAD) program, shedding light on the timeline for when the much-needed funding will start reaching subgrantees. With states at varying stages of the process, industry experts aim to provide clarity on the complex milestones and potential roadblocks ahead.

Unlocking the BEAD Funding Puzzle: Insights from Industry Experts

Mapping the BEAD Approval Process: Navigating the Complexities

While many states have successfully completed the initial BEAD approval processes, the wait for the actual funds to start flowing continues. Jade Piros de Carvalho, VP of Broadband Advocacy and Partnerships at Bonfire, and a moderator of the upcoming Broadband Nation Expo panel, emphasizes the importance of understanding the hidden milestones that the NTIA dashboard does not fully capture. Even though all Volume 1 plans have been approved, some states are still awaiting validation of their challenge results, a crucial step before moving forward.The panel will delve into the nuances of the BEAD implementation process, shedding light on the varying timelines across different states. Some states, such as Louisiana, Montana, West Virginia, Nevada, and Colorado, have already made significant progress, working on their subgrantee processes as part of Volume 2, which they will then submit to the NTIA for approval. However, this approval process is expected to take an additional three months, further delaying the flow of funds.

Realistic Timelines: When Can We Expect the BEAD Money to Hit the Ground?

Despite the eagerness to see the BEAD funds in action, Piros de Carvalho cautions that the majority of the funding is unlikely to hit the streets until 2026. While some early-moving states, like Louisiana, may see shovels in the ground by late spring 2025, the reality is that most other states may not issue money to subgrantees until fall 2025.This timeline is a disappointment for many who had hoped for a more expedited rollout of the BEAD program. However, Piros de Carvalho emphasizes that the NTIA is working diligently to move the process forward as quickly as possible, navigating the complexities and ensuring the proper safeguards are in place.

Exploring Alternative Technologies: Broadening the BEAD Toolkit

In a recent development, the NTIA has issued draft guidance on the use of alternative technologies, including unlicensed wireless spectrum and satellite broadband, for BEAD projects. While this opens up new possibilities, Piros de Carvalho cautions that there is still a clear preference for fiber broadband as the primary technology.The new guidance establishes a cascading order of preference, with fiber being the top choice, followed by hybrid fiber-coax or licensed fixed wireless access in high-cost areas, and only then considering satellite and unlicensed fixed wireless as a last resort. This approach aims to ensure that the BEAD program maintains a focus on delivering the most robust and future-proof broadband infrastructure possible.However, Piros de Carvalho notes that the draft guidance is still subject to potential modifications in the final version, and there are questions around how states that did not initially include satellite and unlicensed technologies in their Volume 2 plans will be able to incorporate them moving forward.

Navigating Non-Deployment Funds: Maximizing the BEAD Dividend

Another topic that the Broadband Nation Expo panel will explore is the management of non-deployment funds – the surplus funds that some states may have after completing their BEAD buildouts. Due to the formula used to allocate the $42.5 billion in BEAD funding, some states, particularly in the South, are expected to have significant surpluses.These non-deployment funds can be used for a variety of purposes, such as digital equity initiatives, affordability programs, workforce development, and device assistance. However, Piros de Carvalho emphasizes that states will need to develop a comprehensive plan to ensure these funds are utilized effectively and in alignment with the broader goals of the BEAD program.The panel's discussion on non-deployment funds will provide valuable insights into how states can leverage these additional resources to further enhance their broadband infrastructure and address the digital divide in their communities.As the Broadband Nation Expo approaches, the BEAD funding landscape continues to evolve, with states navigating a complex web of approval processes, technology choices, and funding allocation decisions. The upcoming panel discussion promises to offer a unique opportunity for industry stakeholders to gain a deeper understanding of the challenges and opportunities that lie ahead, ultimately shaping the future of broadband connectivity across the nation.