Senate Democrats are pleading with the Trump administration to stop delaying distribution of $42 billion in grants for construction of broadband networks in areas with poor Internet access.
The Biden administration spent about three years developing rules and procedures for the Broadband Equity, Access and Deployment (BEAD) fund and then evaluating plans submitted by each US state and territory. Republicans repeatedly alleged that Democrats should have distributed the grants more quickly, but the Trump administration halted progress after taking over.
"States are ready to put shovels in the ground and have been waiting for months to get started... Additional delays and onerous changes to the program at this stage threaten to further stall urgently needed deployment and leave communities behind," Senate Democrats wrote in a May 30 letter to President Trump and Commerce Secretary Howard Lutnick. The letter was sent by Senate Democratic Leader Chuck Schumer (D-N.Y.), Sen. Maria Cantwell (D-Wash.), and Sen. Ben Ray Luján (D-N.M.).
Trump's Commerce Department reversed the Biden-era decision to prioritize the building of fiber networks in the BEAD program. The move to a "tech-neutral approach" is expected to result in much of the funding being distributed to Elon Musk's Starlink satellite program, even though fiber networks are faster and more reliable.
"States have already developed plans to address these needs, and restarting or slowing down the process will only hold back progress," the Democrats' letter said. "States must maintain the flexibility to choose the highest quality broadband options, rather than be forced by bureaucrats in Washington to funnel funds to Elon Musk's Starlink, which lacks the scalability, reliability, and speed of fiber or other terrestrial broadband solutions."
Lutnick has said a tech-neutral approach will require states to provide Internet access "at the lowest cost to taxpayers," ruling out fiber in many areas that might otherwise have been eligible for that type of network. SpaceX's Starlink satellite system is being deployed nationwide regardless of whether it gets BEAD funding, although subsidies could be used to lower the cost to consumers. Cable and fixed wireless ISPs could also get more funding to expand their networks due to the Trump administration's overhaul of the program.
Lutnick's announcement of the BEAD overhaul also criticized what he called the program's "woke mandates" and "burdensome regulations." Republicans like Sen. Ted Cruz (R-Texas) have criticized a requirement for ISPs that accept subsidies to offer low-cost Internet plans to people with low incomes, though the low-cost rule was originally imposed by Congress in the law that created the BEAD program.
Letter: Projects could be delayed two years
Although Musk last week announced his departure from the government and criticized a Trump spending bill for allegedly "undermining" DOGE's cost-cutting work, Trump still seems favorably inclined toward Starlink. Trump said in a press conference on Friday that with Starlink, Musk "saved a lot of lives, probably hundreds of lives in North Carolina," referring to Starlink offering emergency connectivity after Hurricane Helene.
Democrats' letter to Trump and Lutnick said that fiber and other terrestrial broadband technologies will be better than satellite both for residential connectivity and business networks that support US-based manufacturing.
"Data centers, smart warehouses, robotic assembly lines, and chip fabrication plants all depend on fast, stable, and scalable bandwidth. If we want these job-creating facilities built throughout the United States, including rural areas... we must act now—and we must build the high-speed, high-capacity networks those technologies demand," the letter said.
Democrats also said the Trump administration rewrite of program rules could delay projects by two years.
"For six months, states have been waiting to break ground on scores of projects, held back only by the Commerce Department's bureaucratic delays," the letter said. "If states are forced to redo or rework their plans, they will not only miss this year's construction season but next year's as well, delaying broadband deployment by years. That's why we urge the Administration to move swiftly to approve state plans, and release the $42 billion allocated to the states by the BEAD Program."
Separately from BEAD, Trump said last month that he is killing a $2.75 billion broadband grant program authorized by Congress. The Digital Equity Act of 2021 allows for several types of grants benefitting low-income households, people who are at least 60 years old, people incarcerated in state or local prisons and jails, veterans, people with disabilities, people with language barriers, people who live in rural areas, and people who are members of a racial or ethnic minority group. Trump called the program "racist and illegal," saying his administration would stop distributing Digital Equity Act grants.
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