Consultants Urge BEAD ‘Rainy Day’ Fund To Cover Gaps
Infrastructure specialists urge administrators to reserve $7.6 billion from BEAD for unexpected shortfalls.
WASHINGTON, April 3, 2026 — Broadband consultants are urging federal officials to reserve billions from the Broadband Equity, Access and Deployment program to address funding gaps and rising deployment costs.
The Vernonburg Group, a consulting firm aimed at shaping the digital future, said a ‘rainy day’ fund could help ensure more eligible locations receive service as states begin implementing BEAD projects.
The firm initially proposed setting aside about $6 billion from remaining BEAD funds. In an updated analysis, Vernonburg increased its recommended reserve to $7.6 billion.
“Vernonburg Group has updated its analysis of unserved and underserved locations across the United States and now recommends that NTIA work with [states and territories] to create a rainy day fund of $7.6 billion,” wrote Paul Garnett, Vernonburg Group’s founder and CEO, and Greg Guice, its chief policy officer.
The group said such a reserve would help states manage risks over the next four to five years, including rising construction costs and unexpected project challenges.
The group's initial estimate included between $1.4 billion and $1.7 billion to cover unserved locations and new rural housing, plus an additional $4.3 billion to account for cost overruns and inflation.
The firm said the revised figure accounts for ongoing Rural Digital Opportunity Fund defaults, new housing growth, and the need to support additional last-mile deployments not covered in initial BEAD allocations.
Consultants at the group warned that without a reserve, states could face funding shortfalls if construction costs rise or projects prove more expensive than expected.
The proposal has drawn support from policy experts.
“The National Telecommunications and Information Administration should still ensure that some funding is available as a ‘rainy day’ set-aside,” Evan Swarztrauber, a senior fellow for broadband and telecommunications policy at the Foundation for American Innovation, wrote in an expert opinion for Broadband Breakfast.
“A rainy-day fund would give the agency needed flexibility to ensure that consumers aren’t left behind through no fault of their own,” Swarztrauber wrote.
Federal officials have not yet indicated whether they will adopt a rainy day fund or how $21 billion in remaining BEAD non-deployment funds may be used. A planned March 11 announcement regarding permissible uses for this $21 billion was delayed by NTIA.
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