States Run 'Marathon' to Spend Federal Broadband Cash

States face a time crunch preparing to spend billions of federal dollars on broadband, said state and federal panelists at NARUC’s winter conference Monday. A possible change in broadband responsibilities is causing uncertainty in Nebraska about who will administer funds from NTIA’s broadband, equity, access and deployment (BEAD) program.

“This is a marathon, not a sprint,” said NTIA Senior Adviser Sarah Morris. The federal agency is pressing forward on each incremental deadline for BEAD because the agency knows "these timelines are all part of a longer timeline,” she said. "We are trying to get the money out the door as quickly but as carefully as possible to meet that critical need."

States in the early stages of their broadband work should get started coordinating agencies, advised Morris: Deadlines “are going to start to hit fast and furiously, and the more that states can start building that connective tissue … now, the better.” NTIA is targeting June 30 to announce states’ allocations, she said.

Nebraska is already two-and-a-half months into a nine-month timeline to complete its five-year BEAD plan, said Nebraska Public Service Commission Telecom Director Cullen Robbins. “That clock moves really fast.” BEAD is a big program with many requirements for states to have to manage, he said. Much is riding on mapping, but the federal time frame “hasn’t allowed a ton of input from states” on making the map as good as possible, he said.

Maryland is trying to get out $400 million in American Rescue Plan Act money at the same time as it’s preparing to spend at least another $100 million from BEAD, said Kenrick Gordon, director of that state’s broadband office.

“I’m extremely sympathetic … and apologetic about the timelines, which are what they are,” said Morris. “I know it’s been a real burden for folks to navigate.” But NTIA thinks “the maps are pretty good and … continuing to get better.” The broadband fabric, now in version two, “is in decent shape,” she added.

Despite BEAD work underway at the Nebraska PSC, the state’s new Gov. Jim Pillen (R) and the legislature are considering shifting those responsibilities to a new state broadband office (see 2302070039). “There’s going to be a little ambiguity” on what the roles will look like, Robbins said. The PSC has more than 20 years of experience managing broadband, noted the official: It was one of the few state commissions in the country given BEAD responsibility.

“We’ll know by June” at the end of a long legislative session who will administer BEAD, said Nebraska PSC Commissioner Tim Schram (R). Robbins said, “I don’t know when we’ll know.” The PSC is “moving forward because right now we’re the entity that’s in charge of administering it,” he said. “Until that’s not the case, we’ll continue.”

Before the COVID-19 pandemic, only half the states had a broadband office or other initiative, said Pew Broadband Access Initiative Senior Officer Anna Read: Since the virus and an influx of federal funding, every state has a broadband office or similar entity. State broadband offices are getting bigger with more specialized staff positions in areas like digital equity, mapping and data collection, she said.

State broadband budgets increased significantly, with some offices that once managed $20 million at most now considering what to do with up to $1 billion, Read said. In four years, Maryland’s budget went from $2 million to $400 million, noted Gordon, and that was before the federal infrastructure law.