House committee gives do‑pass to bill funding broadband affordability pilot
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Summary
A House committee voted to give House Bill 3 23 a do‑pass recommendation after hearing testimony that $5 million could fund a technology‑neutral pilot to subsidize broadband affordability for low‑income, rural and tribal communities; members questioned federal BEAD allocations and the role of satellite providers such as Starlink.
A House committee on Friday recommended a do‑pass for House Bill 3 23, which would appropriate $5,000,000 from the general fund to expand broadband access and affordability for low‑income residents, small towns and tribal trust lands.
Representative Pamela Herndon introduced the bill, saying it would target “low income persons, unincorporated communities, or in a city, town, or incorporated area with a population of 20,000 or less.” Jeff Lopez, director of the New Mexico Office of Broadband Access and Expansion, told the committee that “broadband affordability is the single largest barrier to broadband access in New Mexico.”
The bill’s $5 million would be intended to support subsidized rates or grants to improve affordability rather than directly fund large‑scale deployment. Lopez said the office would run a competitive process and that the program would be technology neutral: if Senate Bill 152 (an affordability registration/eligibility measure) passes, the office would work with the Public Regulation Commission to provide higher subsidies; if SB 152 does not pass, HB 3 23 would be treated as a pilot program with rules and structure determined by the Office of Broadband.
Committee members pressed for details on how the proposal fits with federal funding. Lopez said New Mexico has been allocated $675,000,000 through the federal broadband equity, access and deployment (BEAD) program and that the federal government approved a $382,000,000 final proposal for deployment. He said about 16% of BEAD‑covered locations in the state would be served by low‑Earth‑orbit satellite providers (naming Starlink and Amazon Project Kuiper as bidders for very rural locations). "So as part of our access, for that physical infrastructure, low earth orbit satellite would be included," he said.
Lopez also cited recent state award activity: a single BEAD project award to the Navajo Nation of $111,000,000 covering about 10,000 locations, awards to Acoma Pueblo and Jemez Pueblo, and $7,000,000 in additional announced awards for community Wi‑Fi projects from the Connect New Mexico and broadband strategic funds. He said $14,900,000 remained unobligated from a prior $124,000,000 appropriation and that some state funds were being held in reserve because federal guidance on other portions of the allocation was still pending.
Several lawmakers voiced concern about potential unfair competition if satellite providers dominated subsidy programs. One member asked whether supporting satellite service would undercut wired providers; Lopez said the office’s current policy is technology neutral and that the office is not advancing last session’s measure that would have advantaged a single satellite provider. "This would be a neutral program," he said.
After questions and discussion, Representative Jimmy Mason moved a do‑pass recommendation; Representative Martha Garcia seconded. The chair called for those present to show affirmative votes, and the committee recorded a do‑pass on House Bill 3 23.
The committee then completed short business items, thanked staff and adjourned.