Legislators press OSIT on broadband rollout as agency details $552 million BEAD last‑mile awards and middle‑mile permitting delays

At a joint hearing of the Nevada Legislature’s Senate Finance and Assembly Ways and Means committees, Brian Mitchell, director of the Office of Science, Innovation and Technology (OSIT), described a broadband deployment plan that combines federal BEAD funding with state ARPA and capital projects funds and said OSIT has awarded last‑mile grants to connect roughly 51,000 homes across Nevada.

Mitchell told lawmakers the BEAD (Broadband Equity, Access, and Deployment) last‑mile awards total about $416,000,000 for Nevada and, when combined with other federal and state contributions, total about $552,000,000. He said awarded providers included 19 internet service providers and that roughly 80% of awarded last‑mile projects bid to deliver fiber, with about 10% using fixed wireless and 10% using satellite. “We were able to receive bids for fiber optic Internet for about 80% of the bids,” Mitchell said.

Lawmakers focused on two related risks: (1) the state’s ability to spend ARPA and capital projects funds before the federal expenditure deadline and (2) federal permitting delays on a large middle‑mile route that crosses Bureau of Land Management (BLM) lands. Mitchell described a middle‑mile NTIA grant (roughly $43,000,000) plus a state capital projects allocation of approximately $73,600,000 to build a state‑owned I‑80 route from the Utah border to Reno. He said engineering and design work are complete and that construction will begin once outstanding federal permits from BLM are issued. “Permitting is the long pole in the tent,” Mitchell said. He told the committee he expects the remaining BLM permits to be issued this summer and that construction spending will accelerate after permitting is complete.

Several lawmakers said the pace of spending to date is concerning. Majority Leader Patricia Cannizzaro cited data showing only modest ARPA capital projects drawdowns to date and asked whether the state can realistically obligate and spend the funds before the federal deadlines. Mitchell explained that funds have been obligated in contract awards but are not disbursed until contractors hit invoice milestones; he said the engineering and permitting work explain the slow initial spend and that construction invoices will cause a “hockey stick” increase in spend rates once BLM permits arrive. He told the committee he expects a “significant increase in the amount of funding” drawn down starting in the second half of calendar 2025.

OSIT said it has assigned project managers who meet weekly with subrecipients, require daily location and weekly production reports, and will perform field inspections to track progress. Mitchell said contracts include completion milestones and remedies for missed deadlines and that the agency will continue close oversight. He also said OSIT had engaged in a broad public challenge process and received more than 500 BEAD applications during procurement.

When asked about price caps and award selection, Mitchell said Nevada did not adopt rigid price caps in the BEAD procurement and that the selection process examined applicants’ technical, financial and operational capabilities. He added OSIT intentionally prioritized awards to vendors with demonstrated ability to construct and operate networks and expects the state’s oversight and project management to reduce risk of contractor failure. The agency also plans digital skills and adoption programs to encourage subscription after networks are deployed.

Mitchell asked the committee for continued monitoring and said OSIT publishes a monthly public construction dashboard showing permitting, pre‑construction, construction and completion status for segments. Several legislators urged more frequent status reports to the Legislature and interim finance committee.

What lawmakers asked for: multiple members requested regular updates (monthly or quarterly) on permitting status, invoicing, and actual spend, and asked OSIT to return to provide those updates. OSIT agreed to provide regular cadence reporting and to continue direct coordination with BLM and federal partners.

Prognosis: OSIT projects first BEAD last‑mile connections this summer or fall in some areas and continuing deployments through 2029; major middle‑mile construction is expected to expand spending materially once federal permits are issued.

Ending: Lawmakers signaled continued interest and concern about the pace of permit approvals and the state’s ability to meet expenditure deadlines. OSIT emphasized it will keep the committee and the public updated through a published dashboard and direct briefings.