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JLARC finds 392,000 Virginia locations lack broadband; make‑ready and contract enforcement slow progress

Joint Legislative Audit & Review Commission · December 9, 2024
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Summary

JLARC told commissioners that about 392,000 locations in Virginia remain unserved and that pole make‑ready work, permitting delays and weak local contracts are the main bottlenecks; staff urged quicker contract enforcement and state support ahead of federal BEAD/BEED awards.

A JLARC briefing on broadband deployment warned that Virginia is unlikely to reach near‑universal broadband access by 2028 and that roughly 392,000 locations still lack broadband that meets the state's definition.

"Approximately 392,000 locations in Virginia currently do not have broadband access," JLARC project leader Lauren Excell told the commission, adding that about two‑thirds of those locations have deployment projects underway but that many projects are delayed or at risk.

JLARC identified the pole make‑ready process—work to prepare utility poles for broadband attachments—as a major cause of delays and cost overruns. Panelists showed examples where make‑ready costs per mile were far higher than original estimates, forcing projects to drop locations or seek contract extensions.

The review also found permitting at VDOT can be fast in many residencies but that some permit approvals took several months; JLARC recommended clarifying permitting requirements and prioritizing time‑sensitive funding applications to reduce delays.

On program implementation, staff reported that VADI has awarded funds to connect about 370,000 locations but that many 2022 pandemic‑funded projects remain behind schedule; some local contracts lack enforcement provisions that would allow localities to hold ISPs accountable or to replace underperforming partners.

JLARC recommended steps to strengthen local contracts, require stronger performance metrics for projects seeking extensions, and direct DHCD to identify projects unlikely to finish by the federal deadline so localities can take corrective action. The presenters noted BEAD/BEED awards will likely come later than first anticipated, with DHCD expecting awards in early 2025 and project starts in 2026.

Brian Horn, director of the Virginia Department of Housing and Community Development, responded that DHCD is taking JLARC’s recommendations seriously and said the agency has built out roughly 136,000 locations in the last two years through state programs. DHCD said it does not anticipate returning federal money to NTIA if projects continue to progress.

JLARC urged prompt action on contract provisions and contingency planning ahead of BEAD/BEED spending deadlines to reduce the risk that federal pandemic relief and BEAD funds cannot be fully spent.