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Lawmakers and witnesses warn BEAD changes could slow fiber and widen the digital divide
Summary
Senators and witnesses at the Commerce Committee hearing said recent BEAD rule changes and program delays risk steering funds away from fiber and urged USF modernization and prompt NTIA guidance on non‑deployment funds.
Multiple senators raised concerns that the BEAD program’s restructuring and guidance have injected delays and, in some cases, steered funds away from fiber buildouts that proponents say are essential for AI‑ready networks. A member of the panel summarized the funding figure used in testimony: "The $42,500,000,000 BEAD funding appropriated by Congress has been called a once in a lifetime, investment in connectivity." (Senator Lujan)
Witnesses described immediate effects on applicant behavior: projects that incurred engineering costs were sometimes required to reapply after program changes and some providers declined to reapply. Jonathan Spalter said industry is "mindful of and dutiful to the rules" but asked Congress and agencies to accelerate guidance and ensure dollars prioritize durable, future‑proof infrastructure.
On the role of the Universal Service Fund, witnesses called for modernization. "A reformed, thoughtful USF program that can keep pace with the changes that we're seeing in our network" was described as an accelerator for delivering fiber to communities, and Commissioner Watermeyer emphasized Nebraska’s use of state and federal USF dollars to reach high‑quality speeds.
Senators asked about specific uses for leftover BEAD allocations (so‑called non‑deployment funds). Spalter said states are awaiting NTIA guidance (testimony referenced an expected September guidance), and suggested those dollars could be used for resiliency, cybersecurity training, permitting acceleration, and NG‑911 modernization.
