Cruz: Incoming GOP Congress Will Review 'Unlawful and Burdensome' BEAD Rules

Senate Commerce Committee ranking member Ted Cruz, R-Texas, is warning NTIA that Congress will “review the BEAD program early next year,” when Republicans will control both chambers, and plan to pay “specific attention to” program requirements that have drawn GOP ire. Congressional Republicans are likely to at least pursue a revamp of BEAD to rein in what they view as NTIA’s flawed implementation of the $42.5 billion initiative, while a clawback of program funds is less likely (see 2410210043). Drew Garner, Benton Institute for Broadband & Society director-policy engagement, pushed back Friday against criticisms Cruz separately leveled at NTIA's notice of funding opportunity (NOFO) for its $1.25 billion digital equity competitive grant program (see 2411210041).

Cruz, who is on track to become Senate Commerce chairman in January, urged NTIA Administrator Alan Davidson Thursday to “pause any unlawful, extraneous BEAD activities and avoid locking states into any final actions” ahead of the pending review. “Anticipated new leadership” at NTIA and the FCC once President-elect Donald Trump returns to office Jan. 20 means BEAD “will soon be ‘unburdened by what has been’ and states will no longer be subject to the unlawful and burdensome bureaucratic obstacles imposed by the Biden-Harris NTIA,” Cruz said in a letter to Davidson. As Senate Commerce chairman, “I will monitor this matter” closely.

Congress’ impending BEAD review will focus in part on “NTIA’s extreme technology bias in defining ‘priority broadband projects’ and ‘reliable broadband service;’ imposition of statutorily-prohibited rate regulation; unionized workforce and DEI labor requirements, climate change assessments; excessive per-location costs, and other central planning mandates,” Cruz said. He wants Davidson to pause BEAD activities “until you provide a detailed, transparent response to” his August request for an update on program implementation that faulted NTIA for allocating $849 million to its administration (see 2408130061). Cruz attached a copy of NTIA’s Oct. 18 response to his inquiry that he found inadequate.

NTIA “received the letter and [is] reviewing it,” a spokesperson said. The agency gave the same response to Cruz’s earlier letter criticizing the digital equity competitive grant program. Cruz wants NTIA to withdraw the program’s NOFO because he claims its use of “racial classifications” violates the Fifth Amendment's due process clause by not providing evidence of racial discrimination in internet access.

“It was Congress, in its wisdom, that defined the covered populations the Digital Equity Act programs are designed to address -- including ‘individuals who are members of a racial or ethnic minority group,’” Garner said. “In fact, the law goes further to define covered populations to include low-income people, seniors, veterans, people with disabilities, and rural Americans (among others) and outlines the critical steps that NTIA must follow to advance digital literacy and improve internet adoption. It’s the law – and NTIA is merely following the law as Congress intended.”

Cruz's “solution is to demand that NTIA ignore the will of Congress and the law, and, in so doing, deny digital literacy and adoption programming for ALL the covered populations that the law is designed to help,” Garner said. That would leave “military Veterans, seniors, rural Americans, people with disabilities, low-income people and others without access, the ability to use the Internet, or a voice online.”