A recent report showing a severe decline in locations covered by Broadband Equity, Access and Deployment (BEAD) program funds shows the $42.5 billion stupidity of taxpayers allocated to the initiative.
An analysis by the Advanced Communications Law & Policy (ACLP) Institute at New York School found that since allocation was set in 2023, there has been a 57% decline in unused or underserved locations across the US. ACLP has determined the decline by comparing data from the challenge process in 46 states (New Jersey, North Carolina, Ohio and Texas are not yet published).
The state initially determined where it would be eligible for unserved or unserved bead funding (the latter, with an upload speed of 25 Mbps, with no speeds above 100 megabits per second, to determine the broadband definition set by the Federal Communications Commission (FCC) primarily from data from data from the FCC’s national broadband map). (NTIA) has created a challenge process that allows local governments, nonprofits and internet providers to question location eligibility because they manage Beads.
In just two years (and before a dollar was distributed), more than half of the places set up to receive funds from Beads are no longer eligible for money. The decline varies dramatically from state to state. South Carolina has experienced the biggest decline, with 84% of allotted locations currently ineligible.
“This decline highlights the significant advances made to close the digital disparities as state bead funding was announced in June 2023. These benefits come directly from continuing capital investments. [internet service providers] ACLP authors Michael Santorelli and Alex Karras said they would expand network and grant-funded projects through the American Rescue Plan Act and the Rural Digital Opportunity Fund, according to the authors of the ACLP report.
This study raises imminent taxpayer waste concerns. ACLP noted that after the state completed its Bead Plan, billions of taxpayer dollars were distributed in ARPA grants, implementing the challenge process, increasing “some Bead-funded projects could be significantly over-structured.”
ACLP pointed out that New York will use ARPA funds to subsidize critical overbuilding in the state’s city infrastructure program. This is the initiative that the Taxpayer Protection Union (TPA) was previously criticised for its dedicated sucking funds, owned by government-owned sucking funds (I, E, E, taxpayer funds).
As the TPA previously reported, Trump-administrated Secretary Howard Lutnick and NTIA administrator Ariel Ross show the possibility of a shift from the Biden administration policy of the Beads program.
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At the committee hearing on January 29th, Lutnick expressed his desire to delay the administration of beads and investigate in detail. “Beads programs need to be operated efficiently and effectively. Americans can benefit from the bargains that Congress intended,” he said.
Based on its report, ACLP recommends that NTIA develop mechanisms to reflect projects that are not funded by existing grants that have not yet been described in the state challenge process.
“To the extent that bids result in excess of building locations based on enforceable commitments, the state must have a process in place to strengthen these commitments in a timely manner,” writes Santorelli and Karas. “This will keep Bead Funds focused on lasers when closing digital disparities, preventing them from wasting these resources in areas already offered.”
Beads taxpayer waste is already growing their heads. From workforce training to digitalizing small businesses, Louisiana is shifting $500 million in surplus funds to a variety of digital projects that are unrelated to broadband deployments.
ACLP suggests that it will create a system that allows the NTIA to send the remaining funds to other states, creating non-deployment uses that are narrower defined by the states.
The massive decline in bead-friendly locations is eye-opening, and it proves that the initial allocation made for the program is too big, given the rise in private investment and countless other state and federal broadband funding initiatives. The NTIA must look closely at Bead reforms as taxpayers see the money wisely spent on their quest to close digital disparities.
Johnny Campis is the director of the Taxpayer Protection Union’s telecom policy
