As conversation heats up around Broadband Equity, Access and Deployment (BEAD) non-deployment funding, two U.S. senators proposed a bill that would allow states to use their leftover allocations for network resiliency and workforce development.
The Supporting U.S. Critical Connectivity and Economic Strategy and Security (SUCCESS) for BEAD Act, introduced by Sens. Roger Wicker (R-Miss.) and Shelley Moore Capito (R-W.V.), outlines certain eligible uses for non-deployment money, which could total at least $20 billion.
Wholesale fiber, mobile wireless infrastructure, subsea cables and 911 upgrades are among the listed eligible uses. States would also be allowed to use the funds for “workforce development targeting initiatives related to broadband deployment, emerging technologies/AI, cybersecurity and electrical sectors.” Data centers notably are “explicitly prohibited” as a use of funds.
But these provisions could be especially beneficial for states that awarded more BEAD money to alternative technologies like satellite, said Shannan Williams, VP of Public-Private Partnerships at Ready.net.
“Strengthening backbone, backhaul, and other wholesale infrastructure can materially improve performance without relitigating who won the first round,” she wrote in a LinkedIn post.
Tension with Trump’s AI order
Interestingly, the bill doesn’t restrict non-deployment money on the basis of state AI regulations, despite the Trump administration’s new Executive Order (EO) doing just that.
Priority would be given to projects that improve infrastructure in rural areas, enhance public safety, “strengthen network resiliency and cybersecurity, support federal or military facilities, reduce network latency, or advance AI-related technology.”
Trump’s EO calls for NTIA to issue non-deployment guidance for states with “onerous” AI laws, but there’s a chance Congress could overturn what NTIA is currently planning, said New Street Research Policy Analyst Blair Levin in a note Friday.
“We note that there is significant polling data suggesting bi-partisan concern about AI and opposition to the AI state legislative preemption,” Levin wrote. One study for instance shows 75% of the public opposes federal preemption of state AI legislation.
Prior to the introduction of SUCCESS for BEAD, a bipartisan group of senators sent a letter to NTIA urging the agency to let states use their non-deployment funds “consistent with congressional intent and the bipartisan infrastructure law.”
Levin further added Trump did not mention the AI EO in his speech last week, suggesting the administration is aware the order is not so popular.
Will GAO delay BEAD funds?
The fate of all BEAD funds – non-deployment or otherwise – is precarious as the Government Accountability Office (GAO) last week ruled the restructured BEAD notice is subject to the Congressional Review Act (CRA).
But Levin doubts the GAO report will significantly delay BEAD disbursement, “if at all.” If BEAD does go through the CRA, it’s “highly unlikely” Congress will vote to overturn the policy notice. NTIA could also choose to ignore the GAO and proceed as planned.
“That path creates some potential legal liability, but we are not sure there are any stakeholders who would object to NTIA simply moving forward and funding the states as soon as possible,” he said.