Thune, Other Republicans Seek Revisions, New Version of NTIA's BEAD NOFO

Senate Communications Subcommittee ranking member John Thune of South Dakota, Commerce Committee ranking member Ted Cruz of Texas and nine other panel Republicans pressed NTIA Thursday to “revise or issue a new” notice of funding opportunity for the $42.5 billion broadband, equity, access and deployment (BEAD) program “to address” a range of GOP concerns. They want the agency to respond by May 4. NTIA’s existing BEAD NOFO previously drew Senate Commerce Republicans’ ire during a June hearing.

“To fulfill Congress’ goal of providing broadband connectivity to unserved Americans, NTIA must address concerns” about the NOFO, Thune and other Republicans said in a letter to agency Administrator Alan Davidson we obtained ahead of its Thursday morning release. “As numerous states and stakeholders have articulated, current BEAD rules divert resources away from bringing broadband service to rural America and are inconsistent with NTIA’s statutory authority in the Infrastructure Investment and Jobs Act.” NTIA’s “failure to resolve these concerns will prolong the digital divide and put billions of scarce taxpayer dollars at risk,” the Republicans said.

The GOP senators want NTIA to “make it clear that states do not have the authority to regulate rates, and NTIA should refrain from introducing any new rules relating to rate regulation or wholesale access requirements that are inconsistent with its direction from Congress.” They cited current NOFO language that “requires states to ‘ensure that high-quality broadband services are available to all middle-class families in the BEAD-funded network’s service area at reasonable prices.’” The notice also includes “an additional form of rate regulation by giving preference to providers that agree to interconnect with their competitors at wholesale rates,” the lawmakers said.

Thune and other Republicans seek removal of NOFO language that “gives favorable treatment to government-owned networks over private investment,” including a requirement that states “include ‘an explanation for awards to traditional broadband providers when one or more non-traditional providers submitted competing proposals.’” They’re concerned the notice “generally prohibits non-fiber projects from receiving BEAD funding” even though IIJA “permitted all technologies, including wireless service, to be eligible for funding as long as they meet” the law’s “network requirements. Further, under the NOFO’s rules, a state that does not use fiber must submit an overly complex and burdensome waiver request, inconsistent with Congress’ intent.”

The Republicans urged NTIA to “work alongside stakeholders to develop a consistent” process for waiving a requirement for purchasing “broadband products and supplies from American workers and businesses” for “certain components of a broadband network” if an entity meets “a number of strict thresholds.” They want NTIA to excise NOFO provisions that went “far beyond” IIJA’s directive to “give priority to eligible broadband providers that have a ‘demonstrated record of and plans to be in compliance with Federal labor and employment laws,’” the senators said: They cited notice language requiring “subgrantees to prioritize certain segments of the workforce, such as ‘individuals with past criminal records’ and ‘justice-impacted [...] participants,’ when building out broadband networks.” They’re also concerned the NOFO “makes several references to and includes a policy that was not included in the IIJA relating to climate change.”

NTIA didn’t immediately comment.