David Nelson: Act Now to Protect American Jobs, Keep Promise of Broadband Grants

President Trump’s America First agenda is built on the promise of opportunity for American families, communities, and businesses. In the 21st century, opportunity depends on access to high-speed fiber optic internet. Broadband is no longer a luxury. It is essential for education, healthcare, agriculture, small business, first responder and more. The promise of bringing this critical technology to every American has unfortunately been a tough one to keep.  It's time we got it done. 

That’s why Congress created the $42.45 billion Broadband Equity, Access, and Deployment Program under the Infrastructure Investment and Jobs Act. This program was designed to connect every American, especially our nation’s rural communities, to high-speed broadband. In June 2023, the National Telecommunications and Information Administration announced funding allocations to all 56 states and territories. 

The goal was clear: bridge the digital divide, create jobs, and build stronger communities. 

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President Trump has already set to work growing on the promise of the BEAD Program with the administration’s release of new broadband policies and a Notice of Funding Opportunity (NOFO) for BEAD funds in June 2025.

Unintended consequences makes broadband grants taxable

But this promise is now in jeopardy. Unintended consequences resulting from changes in the federal tax law made broadband grants treated as taxable income. That means Washington is trying to claw back 20 to 30 percent of the grant funding that has been allocated to rural and last-mile broadband providers. 

Instead of investing every dollar into finally connecting those who need access to broadband the most, providers will be forced to send money back to Washington, unless the president and Congress step in to help.

This is not just bad policy, it is devastating for American workers, rural communities, and taxpayers who deserve this connectivity. It will halt thousands of broadband projects across the country and cost tens-of-thousands of hardworking Americans their jobs. 

Broadband providers will be forced to scale back, leaving hundreds of thousands of Americans, many in rural communities that strongly support President Trump without affordable internet access. 

In areas already hit hard by inflation, supply chain shortages, and natural disasters, the impact will be even greater. 

Trump should issue an executive order delaying tax payments

Leadership is urgently needed again. President Trump must issue an Executive Order by September 15, 2025, delaying these tax payments for at least one year, and giving Congress time to pass the bipartisan Broadband Grant Tax Treatment Act (S. 674 / H.R. 1873). 

These two actions will ensure that every federal dollar is invested directly in broadband deployment, sent back to Washington.

Passing the Broadband Grant Tax Treatment Act or including similar language in the forthcoming government spending bill would restore common sense and protect thousands of American jobs and help small rural broadband providers to recover investment costs in the hardest-to-reach areas.

Failing to act will heighten the digital divide between rural and urban Americans. Without a robust middle-mile backbone, last-mile broadband projects simply won’t be feasible. Schools, hospitals, family farms, and public safety agencies will be left behind. That is the opposite of fiscal responsibility and the opposite of America First.

Broadband is the infrastructure of the future, allowing many more jobs to be created and it will generate an increase in GDP. To squander this opportunity because of an unintended tax law is short-sighted and destructive. President Trump and Congress must act quickly protect the effectiveness of federal broadband grants.

Ensuring that we have broadband infrastructure that allows the American economy to flourish is essential to the President reaching his bold economic goals. Acting now will be good for the American economy, protect American jobs, and ensure the promise of bringing high-speed broadband to every American community can finally be kept.

David Nelson began his work experience in 1997 as the CEO of Via Wireless until 2001. In 2004, he became the President of Aztech Telephone, Aztech Communications, and Aztech Cable until 2007. In 2010, he became the President and CEO of CVIN, LLC dba Vast Networks. Additionally, David Nelson also has experience as the owner of Instant Phone LLC. David Nelson attended California State University, Long Beach from 1970 to 1974. This Expert Opinion is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.