Nebraska Risks $350M Broadband Setback Without Fiber

Nebraska had a chance to deliver future-proof internet to thousands of rural homes, farms, and businesses. Instead, state officials have proposed spending just $43.8 million out of $405 million in federal BEAD funding, leaving more than $350 million unused and rural residents worried about being left behind.

Fiber vs. Satellite: The Core Debate

The Nebraska Broadband Office awarded millions to satellite providers like Starlink and Amazon’s Project Kuiper, along with fixed wireless operators. Fiber — the only infrastructure considered scalable for decades to come — was funded in just 9% of eligible locations.

Neighboring states took a different approach:

• Iowa: 50% of BEAD funds directed toward fiber
• Kansas: 46% toward fiber

The comparison has fueled frustration in Nebraska. Advocates say the state is settling for “second-class” technologies that cannot match fiber’s reliability or speed.

Policy Shifts Drove Nebraska’s Decision

Officials point to recent NTIA rule changes that ended fiber’s preferential status and instead prioritized the lowest-cost technologies. In Nebraska’s flat landscape, satellite and wireless appeared cheaper:

• Fiber: ~$14,600 per location

• Fixed wireless: ~$2,200

• Satellite: ~$1,000

Patrick Haggerty, who leads the Nebraska Broadband Office, defended the choices, saying a mix of technologies is necessary to reach every corner of the state.

But critics argue that cost savings today will mean lost opportunities tomorrow. Fiber is an asset that can be upgraded as bandwidth demands rise, while satellite and wireless have inherent limits.

$350M Question: What Happens Next?

The most contentious issue is the $350 million Nebraska has left unallocated. If the funds are returned to Washington, the state risks missing out on a once-in-a-generation broadband expansion.

Some governors, including Louisiana’s Jeff Landry, argue states should be allowed to redirect excess BEAD funds into digital workforce programs, training, or infrastructure like data centers. Nebraska plans to make that case, but the final decision lies with federal agencies.

Why It Matters

For Nebraska’s rural communities, broadband is more than convenience — it powers precision agriculture, remote work, telehealth, and small business growth. Without fiber, advocates warn, the state risks locking its economy into slower, less reliable connections for decades.

As one county commissioner put it: “Fiber is the gold standard. Anything less is a betrayal of the families and businesses left behind.”