Sen. Cruz: NTIA's Wasting Money on Broadband ‘Slush Fund’

WASHINGTON, Aug 14, 2024 – A prominent Republican Senator has lashed out at the Biden administration, claiming the Commerce Department has wasted money meant to connect millions of Americans to high-speed internet for the first time.

Senator Ted Cruz, R-Texas, on Tuesday accused the National Telecommunications and Information Administration of mismanaging the $42.45 billion Broadband Equity, Access, and Deployment program. Cruz claimed the agency has not only caused significant delays but has also diverted funds to support unrelated social policies.

In a letter sent to NTIA Administrator Alan Davidson, Cruz demanded a detailed report and a full accounting of the program’s expenditures and progress.

Cruz’s letter accused the NTIA of withholding $849 million from the program’s funds to cover its own administrative costs, characterizing this as a “nearly billion-dollar slush fund.” 

Cruz, the ranking member on the Senate Commerce Committee, also alleged that NTIA has imposed burdensome requirements on states, including what he deemed “rate regulation” and “climate change” mandates, which he asserted were beyond the agency’s statutory authority.

The letter requested detailed information on BEAD program expenditures, the status of state proposals, and any changes requested by the NTIA. Cruz has asked for a response by August 27.

Cruz’s letter was the latest in a series of Republican attacks on the BEAD program, which some GOP members view as overly bureaucratic and misaligned with its original mission. 

The House Energy and Commerce Committee asked the NTIA for similar documents in July, when the committee’s Republican leaders opened an investigation into the NTIA’s handling of state plans for the BEAD program.

FCC Commissioner Brendan Carr, a Republican, has also voiced skepticism about the program, questioning its effectiveness in July, when he called it “the slowest moving federal broadband deployment program in recent history.”

In response to a request for comment, the NTIA confirmed that they received Cruz’s letter, stating, “We are in receipt of the letter and will respond.” The agency did not provide further details on the timeline or content of their response, nor did it comment on the several allegations made by Cruz.