Non-Deployment BEAD Funds In Jeopardy, State Officials Say
BEAD’s recent policy notice narrowed qualifications for funding opportunities.
WASHINGTON, June 24, 2025 – With states facing a Sept. 4 deadline to submit their final plans for Broadband Equity, Access and Deployment funding, broadband experts met last week to discuss how BEAD’s new policy notice will change outcomes for the communities the program serves.
The Schools, Health and Libraries Broadband Coalition held a webinar Wednesday with two state broadband officials and two from the private sector. Executive director of Minnesota’s Office of Broadband Development Bree Maki worries how the narrowed program qualifications will affect community anchor institutions following the policy notice on BEAD sent out June 6.
“We’re certainly frustrated by this definition,” said Maki. “We in our states all have a definition, we know, hands on the ground, what that looks like and why.”
FROM SPEEDING BEAD SUMMIT
Panel 1: How Are States Thinking About Reasonable Costs Now?
Panel 2: Finding the State Versus Federal Balance in BEAD
Panel 3: Reacting to the New BEAD NOFO Guidance
Panel 4: Building, Maintaining and Adopting Digital Workforce Skills
Under the original BEAD Notice of Funding Opportunity, states were allowed to expand the definition of Community Anchor Institutions beyond the statutory list, which includes schools, libraries, and health centers, said Vernonburg Group Chief Policy Officer Greg Guice.
“[The policy notice] basically said the NOFO is null and void as to that extension, and therefore we have to revert back to only the statutory list, and so states are now going to be limited to funding what was in the statute,” said Vermont Community Broadband Board Chair Christine Hallquist. Hallquist said that Vermont would push back against guidelines that would prevent funding for homeless encampments, but planned on conceding to removing locations like the ranger station in a state park from the classification of CAI.
Even the limited list of CAIs may not get the funding they expected.
“Previously, BEAD funding was going to go through deployment, and if there was leftover money, you can get to the anchor institutions, which is part of your non-deployment activity,” said Hallquist.
Now, there is no clear guideline for how to proceed with funding non deployment projects. “This policy guidance says ‘No non-deployment funding until we say otherwise,’ but footnote two says ‘Follow the statute,’ and the statute says community anchor institutions are eligible for funding at the discretion of the state, not NTIA,” said Hallquist.
In spite of these roadblocks, the administrators say they will continue to work hard to provide internet access to their communities. “We just have to accept that ‘internet for all’ has a different definition now, so we're going to work really hard to maximize what we can,” said Maki.
