Funding Freeze Makes More Uncertainty for BEAD

WASHINGTON, Jan. 28, 2025 – Most observers reviewing the White House memo directing executive agencies to pause federal grant spending for 13 days, or until Feb. 10, believe that the $42.5 billion Broadband Equity, Access and Deployment grant program is covered by the pause.

The American people elected Donald J. Trump to be President ofthe United States and gave him a mandate to increase the impact of every federal taxpayer dollar. In Fiscal Year 2024, ofthe nearly $ 10 trillion that the Federal Government spent, more than $3 trillion was Federal financial assistance, such as grants and loans.

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But one analyst said that states with already approved broadband spending plans – Louisiana, Nevada and Delaware – should be safe to spend without a pause.

On Monday night, the White House circulated a memo directing executive agencies to pause federal grant spending until Feb. 10. “To the extent permissible under applicable law, Federal agencies must temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” read the memo, authored by Matthew Vaeth, acting director of the Office of Management and Budget.

Democratic lawmakers condemned the memo, arguing the White House can’t unilaterally pause funding Congress approved. Groups including the National Council of Nonprofits, the American Public Health Association and the Main Street Alliance on Monday morning filed a lawsuit seeking to block the freeze.