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DEED broadband office outlines BEAD, state grants and remaining coverage gaps
Summary
DEED's Office of Broadband Development briefed the House Ag Finance Committee on state and federal broadband programs, reporting tens of thousands of unserved and underserved locations and describing the BEAD application process, Border-to-Border grants, line-extension rounds and digital equity plans.
Bridging remaining gaps in rural broadband was the Office of Broadband Development's focus as the agency briefed the House Agriculture Finance and Policy Committee on federal BEAD funding, state grant programs and the Digital Equity Act.
"My name is Bridal Mackey and I serve as the Executive Director at the Office of Broadband Development at DEED," Mackey told the committee. She said state mapping from December 2024 showed roughly 143,000 households and businesses without access to 25/3 Mbps and about 189,000 without 100/20 Mbps; approximately 81,000 locations were BEAD-eligible under federal definitions.
Mackey described the state's suite of programs: the Border-to-Border Broadband Development Grant (competitive cost-share grants, up to 50% of eligible costs), a Low Population Density program (up to 75% cost share), and a Line Extension Program that awards up to $25,000 per location via reverse auction to extend existing infrastructure. She said the state has invested more than $400,000,000 in broadband grants to date and reported over $503,000,000 in local provider investments alongside state grants.
On BEAD (the Broadband Equity, Access and Deployment Program), Mackey said Minnesota's allocation is $652,000,000. The state completed the federal challenge process and produced a final list of eligible locations; DEED is running a prequalification portal for providers through Feb. 27 and plans multiple subgrantee selection rounds, beginning with a fiber-only round. She said NTIA-approved BEAD volumes and the state's plan require priority be given first to unserved locations, then underserved, then community anchor institutions.
Mackey said state staff carried out 81 site visits for infrastructure grants to verify builds and speeds, and that the Line Extension program has seen more than 5,700 registrations with roughly 2,200 awarded in three rounds so far. She told members state grants are reimbursement-based and that DEED monitors builds and conducts speed tests at closeout.
On Digital Equity, Mackey described Minnesota's planning and capacity grants. The state's digital opportunity plan and a $12,000,000 capacity grant were approved by NTIA; DEED said it will issue noncompetitive and competitive subgrants for adoption and inclusion work and is partnering with local organizations, tribes, libraries, area agencies on aging and community-action groups.
Committee members asked about metro-area gaps, federal funding impacts, administrative dollars for program delivery, and provider concerns about BEAD requirements. Mackey said some metro multi-dwelling-unit reports can mask in-unit access issues, DEED has access to $5,000,000 for planning under BEAD and can seek reimbursement for administrative costs, and that DEED is advocating with NTIA to reduce program burdens for participating providers. She said DEED will follow up with committee members on the approved federal plan and grant details.
