Childcare and Transportation Get BEAD Attention

As states gear up to spend tens of billions on subsidizing broadband network expansions, some also plan on designating public funds for "wraparound services," such as transportation and childcare for the broadband deployment workforce. Our analysis of states' broadband equity, access and deployment (BEAD) program volume 2 plans found many states saying they will prioritize subgrant applicants that provide such services. Wireless Infrastructure Association President Patrick Halley told us states that anticipate or potentially could have funds remaining from BEAD deployment activities must begin thinking about using that money, including putting it toward workforce development needs.

Wraparound services originated when lawmakers recognized that childcare, transportation and other issues must be addressed for broadband workforce recruitment and retention, said Jade Piros de Carvalho, vice president-broadband advocacy for Bonfire Infrastructure Group. A challenge subgrantees face is that including such wraparound services can increase costs, potentially making their bids less competitive, she said. Childcare and transportation will likely be particularly key in BEAD projects as most will be in rural areas, which typically lack robust public transportation or childcare options, she said.

NTIA's BEAD contrasts with the Chips and Science Act, which required that manufacturers provide childcare services, said Piros de Carvalho. While that was a controversial provision, Chips Act participation drew a lot of interest, she said. With BEAD, states' concerns are that childcare and transportation come atop a variety of requirements, and taking a hard stance on such wraparound services could deter interest from providers, said Piros de Carvalho, who's also a former Kansas broadband director.

Michigan plans on partnerships with community-based and worker organizations for supportive services, such as child care and transportation, as well as mentorship programs. It might turn to the state's MI Tri-Share childcare program, where the state, employer and employee share childcare costs.

The Kentucky Office of Broadband Development (KOBD) plans to put $10 million toward workforce development and readiness. It said more money might be available from leftover BEAD funds after every unserved, underserved and community anchor institution is addressed. KOBD said it "believes that there will be sufficient funds to cover its deployment obligations." It said funding will be used for such workforce efforts as childcare and transportation stipends or reimbursements "to remove barriers to training attendance," as well as marketing and advertising workforce development and adult education programs, support of registered apprenticeship programs and "re-entry training for 'justice involved' individuals to create pathways to employment."

In most cases, states' wraparound plans involve making referrals to existing resources. For example, the Idaho Office of Broadband said it would try to satisfy the need for wraparound services and technical skill training through "sector-based partnerships" of employers, state agencies, community colleges, unions, community-based organizations and others. The Colorado Broadband Office said it will "provide support in securing and retaining a job, including assistance with transportation, work attire, and childcare services." It will rely on "sector-based partnerships among employers, education and training providers, the public workforce system, unions and worker organizations, and community-based organizations."

"Wrap-around services can bring into the workforce people who otherwise would be unable to participate," the Georgia Technology Authority said. The state "will work with the broadest definition of workforce readiness groups and will disseminate information about [wraparound service opportunities] as part of its continuing outreach and engagement."

In Washington, the state plans to expand "the inventory of wraparound services for trainees" by "identifying additional social infrastructure programs" that subgrantees will be encouraged to provide for trainees. Services include onsite childcare or stipends for childcare, education or transportation to training programs, according to the state's volume 2 proposal. The Washington Workforce Board also proposed a collaboration between a range of stakeholders to expand digital literacy and access to information technology careers by funding devices for jobseekers and "gaps in the state's education and training investment framework."

"Promoting wraparound services alongside training programs will be critical to enabling applicants from diverse backgrounds to participate and succeed in training programs and employment," New York's volume 2 proposal said. The state also plans to create and maintain a database for regional workforce partnerships between subgrantees and eligible workers. Tennessee broadband officials plan to partner with community organizations and subgrantees to ensure potential workers have access to wraparound services and flexible work arrangements. The state also plans to partner with the Tennessee Department of Corrections to "recruit from the justice system," noting that individuals "often have a hard time entering the workforce with a criminal record."

In North Carolina, the state plans spending about $2.2 million in BEAD planning funds to establish and operate three training hubs over five years. Funding will support startup equipment and curricular costs, project management, instructor costs, training consumables and tuition support for half the trainees, the state said in its proposal.

The Leftovers

Even if a state has 1% or 2% of its BEAD allocation remaining after deployment activities, that could represent millions of available dollars for nondeployment needs, WIA's Halley said. He said funding is needed for partnerships that address near- and long-term broadband workforce needs. Those would involve an intermediary -- like WIA -- working with industry and academia to ensure a workforce trained not just for deployment activities, like fiber installation, but also for broadband network operations. The partnership also would need to try addressing issues like attracting and retaining staff.

States already have workforce or economic development agencies, but those have often been focused on other industry sectors -- such as manufacturing -- rather than telecom, Halley said. A side effect of BEAD has been that state broadband offices are increasingly coordinating directly with workforce or economic development agencies. In turn, those agencies are focusing more on telecom's needs.

Beyond workforce needs, there should be consideration of investing leftover BEAD funds in network resiliency and redundancy via mobile connections operating alongside fixed ones, Halley said. Wireless networks can be reconnected quickly in disasters, he said. Wireless connectivity also can be an equity issue because many low-income families rely solely on mobile.

The likelihood a state has leftover BEAD funding will depend in part on previous spending for broadband deployment, such as via 2021 American Rescue Plan Act funding and state appropriations, said Jim Stritzinger, South Carolina Broadband Office director. For example, due to $400 million in ARPA funding that South Carolina already put toward broadband deployment, as well as state funding, it has roughly 32,000 BEAD-eligible locations and anticipates "quite a bit of money remaining" after deployment. He said $7 million is going toward workforce development in the form of an apprenticeship stipend for companies with broadband-related positions. With so few BEAD-eligible locations, South Carolina isn't anticipating that the workforce will be a limiting factor when it comes to deployment, though there could be challenges with sufficient county-level permitting staff, he said.