Federal Broadband Funding Is Expanding Coverage and Competition
New CostQuest analysis found federally funded areas are increasingly served by multiple providers
WASHINGTON, August 3, 2026 – Nearly 3.5 million more U.S. homes and businesses that don't have broadband internet have been tentatively promised funding to get it as of June 2026, under a federal infrastructure program.
The forward-looking signal is one of many from a new report on how internet access is changing across the U.S., released Thursday by CostQuest Associates. The report found that the number of locations lacking full broadband access fell by roughly 1 million between June and December 2025, with millions more locations now positioned for service through preliminary awards issued under the federal Broadband Equity, Access and Deployment program.
At the same time, the report found federally funded areas are becoming increasingly competitive, with more providers entering markets that once had few broadband options.
Twice a year, internet providers tell the Federal Communications Commission where they offer service, down to the individual address. CostQuest, which maintains the federal government’s official broadband availability map, analyzed changes between the FCC's Broadband Data Collection Version 7, released June 2025, and Version 8, released December 2025. The analysis covers 116.5 million broadband serviceable locations, or BSLs, nationwide using data submitted by 2,129 internet service providers.
Unserved fell to 3.27 million, underserved fell to 1.99 million
Over that six month window, the number of locations considered to be served by broadband grew from 110.2 million to 111.2 million, unserved locations fell from 3.44 million to 3.27 million, and underserved addresses declined from 2.76 million to 1.99 million.
Interestingly, more underserved BSLs moved into unserved rather than served status, as some areas were reclassified as lacking adequate service rather than improving. Still, roughly half of U.S. counties cut their unserved BSL counts during the period.
The report shows that federal broadband funding is translating into measurable progress, as several federal programs are near completion, including the FCC’s Rural Digital Opportunity Fund and other legacy federal awards.
The report finds 82.5 percent of BSLs funded by federal initiatives outside of BEAD are now built out with service of at least 100 * 20 Megabits per second (Mbps). Among 9.9 million non-BEAD addresses, unserved counts fell 7.8 percent in the latest data. Even so, 1.7 million addresses are still waiting on buildout from awarded providers.
The report finds federally funded areas are seeing a rise in competition among providers.
Nearly 43 percent of federally funded BSLs now have access to more than one provider, as licensed fixed wireless and fiber access continue to expand and raise the competitive baseline in regions that previously had few options.
Licensed fixed wireless access continued expansion
Licensed fixed wireless access continued its steady expansion during the second half of 2025. The technology added 3.2 million served broadband serviceable locations between FCC Broadband Data Collection Versions 7 and 8, a 5.8 percent increase that brought total coverage to 57.5 million locations and expanded service into roughly two-thirds of U.S. counties.
Fiber also continued to gain ground, adding 4.1 million served locations over the same period for a 6.1 percent increase. Its pace slowed from the previous six month period, when coverage grew 8.4 percent.
The report is explicit that the topline trend hides real divergence at the local level. Some counties posted meaningful gains, others actually saw unserved counts rise, driven by factors like new home construction outpacing buildout, providers pulling back their reported footprints, or shifts in how service is reported to the FCC.
With BEAD's newly added locations layered on top, the report frames federal funding as an ongoing, multi-year driver of coverage progress that should continue showing up in future editions of the report.
CostQuest says the report will be updated twice a year as new BDC data is released, with the next edition expected to reflect Version 9 data. An interactive map accompanying the report allows users to explore coverage changes at the county and BSL level.
