State officials outline BEAD timeline and Tennessee broadband investments; grant round expected soon

Braden Stover and Taylor Beatty of the Tennessee Department of Economic and Community Development (ECD) briefed the House Business and Utility Subcommittee on the state’s federal BEAD (Broadband Equity, Access, and Deployment) allocation and the timeline for grant rounds.

Braden Stover said ECD submitted an amendment to its BEAD plan to the National Telecommunications and Information Administration (NTIA) addressing affordability criteria and is awaiting NTIA approval. Stover said ECD has not been directed to pause work and expects to open grant rounds and accept applications once the amendment is approved.

Taylor Beatty, ECD’s broadband director, summarized the program and timeline. She said Tennessee’s BEAD allocation is $813,000,000, derived from a federal formula, and is administered by NTIA. Beatty said there are about 430,000 Tennesseans without broadband access and roughly 70,000 locations classified as unserved or underserved that BEAD funding will target. ECD expects to launch the first grant round in late February if the amendment is approved, with a likely second round in May and a final proposal to NTIA due in August.

Beatty said BEAD is fiber-preferential under current federal guidance: fiber applications will be reviewed first and alternate technologies considered only if fiber proposals are not viable. She explained the timeline constraints: once a state’s initial proposal is approved, the department has 365 days to submit a final proposal specifying coverage and award amounts.

ECD officials recapped 2024 state broadband activity: $264,000,000 invested in broadband programs during the calendar year, including about $131,000,000 for infrastructure and $133,000,000 for digital opportunity programs (connected community facilities, interim solutions, digital skills and workforce development). They said $43,000,000 was spent on digital skills and workforce development and $5,000,000 targeted a TCAT broadband program; projects were funded in 81 counties and efforts have impacted roughly 700,000 Tennesseans. Beatty said BEAD-funded projects must generally be completed by 2030, with Tennessee aiming to finish by 2028.

Committee members asked about reimbursement versus upfront payments for providers; ECD said current state practice is reimbursable invoicing and the department is exploring federal flexibilities but is proceeding on a reimbursable basis pending federal guidance. Members also asked about risks if federal funding were rescinded; ECD said it is proceeding under the assumption funding stands but will monitor federal guidance and would not launch a grant round until funding and approvals were confirmed.

ECD said it will share slides and provide cumulative funding figures on request; officials noted that the state has moved from FCC estimates of more than 20% of Tennesseans lacking access down to under 5% today, citing the department’s programs and investments.