Federal Changes Stall Pennsylvania’s $1.16B BEAD Plan

Pennsylvania’s Broadband Expansion Delayed by Political Uncertainty

Hopes for expanding high-speed internet access across Pennsylvania have been put on hold as the federal government reworks guidelines for the nation’s landmark broadband infrastructure program — a delay that’s causing confusion, frustration, and rising costs in rural communities still waiting to get online.

Originally unveiled in 2022 as part of the Biden Administration’s sweeping $42.45 billion “Internet for All” initiative, the Broadband Equity, Access, and Deployment (BEAD) program aimed to bridge the digital divide by 2030. Pennsylvania was set to receive $1.16 billion to help connect 160,000 homes and businesses that lack adequate service, with contract awards expected before the end of 2025.

Now, those plans are delayed at least a year.

The U.S. Department of Commerce is rewriting the program’s rules, effectively forcing states and contractors to restart bidding processes already underway — a move that could add months, if not more, to an already slow rollout.

Trump Threatens Program Amid Political Tensions

Adding to the uncertainty, former President Donald Trump, in a social media post last week, threatened to scrap the program entirely if reelected, calling it “racist” and “totally unconstitutional.” While his remarks carry no immediate policy implications, they have fueled concerns that political pressure could derail or further delay implementation.

“This program was designed to close the digital divide once and for all,” said Evan Feinman, former director of the BEAD initiative. “Now, everything is being rebid and reconsidered. That’s going to mean serious delays for states that have already spent time and resources building their plans.”

Pennsylvania, with its rugged terrain and wide rural stretches, has long faced challenges in building out broadband infrastructure. In areas like Fayette County — where roughly 8,000 locations have no or poor service — local officials are eager to move forward.

State Waits as New Rules Take Shape

“We’ve got a solid plan, and we’re ready to go,” said Commissioner Vince Vicites. “We’re going to make this happen one way or another.”

But that momentum has stalled. The Pennsylvania Broadband Development Authority (PBDA) has paused its final funding request while awaiting updated federal guidance, saying it wants to avoid further setbacks that could come with a rejected proposal.

The PBDA said it’s prepared to adjust as needed to comply with new rules, including a significant policy shift announced in January. The Commerce Department has dropped the Biden-era preference for fiber optic networks in favor of including more satellite connections — particularly in remote areas where fiber installation is impractical.

That change could benefit companies like Elon Musk’s Starlink, which offers low-earth orbit satellite service. In Pennsylvania, the PBDA estimates about 15,000 locations are too remote for fiber installation. But experts caution that satellite internet is typically slower, more expensive, and less durable than fiber — with average costs more than double and equipment needing replacement every few years.

Experts Warn of Slower, Costlier Internet

“It’s a major step backward,” Feinman warned. “Fiber is faster, more reliable, and longer-lasting. Replacing that with satellite undermines the quality of service people can expect.”

Meanwhile, cost pressures are mounting. Pennsylvania’s prevailing wage laws, which date back to the 1960s, require contractors on publicly funded projects to pay fiber optic installers at rates equivalent to electric linemen — a classification the industry argues is outdated and inflated. Trade groups say a more accurate job classification could slash installation costs by over 50%, stretching limited state and federal dollars further.

Companies large and small are now left waiting to see whether it’s worth reapplying. Hickory Telephone Co., a century-old provider in Washington County, was one of many that submitted bids under the old guidelines.

Industry Frustration and Community Impact

“Putting together the application was a big investment,” said CEO Brian Jeffers. “And now, we don’t know if we’ll have to start all over again. But it’s not about us — it’s about the people who still don’t have internet access. They need it now.”

As Pennsylvania waits for federal clarity, advocates say both the state and the country risk falling further behind in the race to bring reliable internet to every household.

“We’re in a holding pattern,” said Sascha Meinrath, a telecommunications policy expert at Penn State. “At both the state and federal level, we’ve lost momentum — and we don’t have the time to waste.”