TNECD outlines BEAD timeline, says state ready to open broadband grant rounds once NTIA clears amendment

Braden Stover and Taylor Beatty of the Tennessee Department of Economic and Community Development (TNECD) briefed the Business and Utility Subcommittee Wednesday on the state’s Broadband Equity, Access and Deployment (BEAD) program, its timeline and recent state broadband investments.

TNECD told the committee Tennessee’s BEAD allocation is $813,000,000, awarded under the Infrastructure Investment and Jobs Act of 2021 and administered by the National Telecommunications and Information Administration (NTIA). State officials said they have submitted an amendment to NTIA related to affordability scoring and are awaiting NTIA approval; once NTIA clears that amendment, TNECD plans to open grant rounds for internet service providers.

Taylor Beatty, TNECD’s broadband director, described the expected schedule: TNECD hopes to launch the initial grant round in late February, hold a second round in May to address any unserved areas not captured in the first round, and submit a final proposal to NTIA by the August deadline. Officials emphasized the BEAD program requires a final proposal listing the locations to be served and the proposed award amounts; after NTIA’s approval, awardees would move to contracting and construction. TNECD said the program includes a 365‑day performance timeline that begins once an initial proposal is approved by NTIA.

Officials provided figures for historical and proposed investments. TNECD stated that in calendar year 2024 the state invested $264,000,000 in broadband programs; the department attributed about $131,000,000 of that to broadband infrastructure investment and said other funds supported digital‑opportunity programs (including connected community facilities and digital skills/workforce training). TNECD also said it has funded projects in 81 counties and impacted or served more than 700,000 Tennesseans through state programs administered with ARPA and other funding sources. The department identified roughly 430,000 Tennesseans without broadband and said there are tens of thousands of “broadband serviceable locations” that BEAD will target.

Committee members asked operational questions. Representatives asked whether a specific rural location could demand service; TNECD answered eligibility is determined by federal rules and BEAD‑eligibility mapping (the FCC’s broadband fabric) and that the department can investigate specific examples. Members asked whether BEAD awards are reimbursable; Beatty said the state’s standard practice is reimbursement (providers invoice and the state reimburses), and the department is exploring federal flexibilities but is planning a reimbursable model for now. Lawmakers asked about risk to small providers if federal funds are delayed or rescinded; TNECD said it does not anticipate opening a grant round until federal funding and guidance are sufficiently certain, and the department will monitor and consider options such as state gap funding if necessary.

The presentation also covered technology priorities in federal guidelines: BEAD is fiber‑preferential under current NTIA guidance; TNECD said it will review non‑fiber proposals only if viable fiber proposals are not available for an area or in a later round.

TNECD said it will distribute the slide deck to committee members and stand ready to respond to follow‑up questions, including providing cumulative state and federal broadband investment totals and more detailed maps of eligible locations.