NTIA Changes BEAD Rules: How It Affects ISPs

10 June 2025 | BEAD News , IPv4 Blog

NTIA Overhauls $42.5 Billion BEAD Funding Program

New rules strip fiber preference, broaden eligibility, & spark backlash over economic & legal consequences.

The National Telecommunications and Information Administration (NTIA) has officially upended the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. NTIA released sweeping changes, rescinding all previously approved state proposals and forcing every state and territory to resubmit plans within 90 days.

The move was outlined in a newly released Notice of Funding Opportunity (NOFO). This eliminates the program’s longstanding preference for end-to-end fiber networks. Instead, a “priority broadband project” is now defined by performance — offering at least 100/20 Mbps speeds with latency at or below 100 milliseconds — regardless of the underlying technology.

In a sweeping reset, NTIA invalidated previously approved proposals from Louisiana, Nevada, and Delaware, requiring states to conduct another round of subgrantee selections aimed at identifying the lowest-cost providers. The updated guidance also allows broadband providers using fully unlicensed wireless spectrum — previously disqualified under Biden-era rules — to compete for BEAD funding.

The changes have been met with fierce criticism from policy experts, industry stakeholders, and labor advocates, who say the new rules abandon key goals around economic equity, workforce development, and digital infrastructure resilience.

“The deed is done,” said New Street Research analyst Blair Levin. “There is a distinct possibility that in many places wireline enterprises simply will not bid.”

Levin also warned that satellite operators like Starlink and Amazon’s Kuiper may “cherry pick locations,” disrupting terrestrial broadband buildouts. Meanwhile, tensions between Elon Musk and former President Trump could complicate federal support for Starlink deployments, depending on White House signals.

Starlink, and Concerns About Favoritism

The new BEAD rules could significantly benefit satellite providers like Starlink by allowing broader eligibility for low-earth orbit (LEO) systems, including those using unlicensed spectrum. With the fiber preference removed, Starlink can now compete more aggressively for public broadband funds—especially in rural areas where wired infrastructure is cost-prohibitive. However, this shift raises concerns about fairness and potential favoritism. Critics warn that LEO providers could “cherry-pick” lucrative, easy-to-serve locations, leaving harder-to-reach areas underserved. Additionally, given Elon Musk’s high-profile political entanglements and relationships with federal officials, this raises concerns about conflicts of interest in funding decisions.

Lawsuits and Legal Uncertainty

Some stakeholders are considering legal action to block the changes. Levin suggested rural wireline carriers may view the new rules as an “existential threat” and seek to delay or stop implementation in court. Still, he acknowledged that states eager to launch their broadband rollouts may resist further holdups, especially as most BEAD-funded projects are unlikely to break ground until 2026.

“The broadband Groundhog Day no one asked for.”
– Alexis Schrubbe, Internet Innovation Initiative

Alexis Schrubbe, director at the Internet Innovation Initiative, described the NTIA’s about-face as “the broadband Groundhog Day no one asked for.” “States that prioritized community-driven networks, built local partnerships, and ran extensive outreach now face immense sunk costs,” she wrote.

NTIA Changes BEAD Rules: What It Means for ISPs

Labor and Policy Rollbacks

Among the biggest reversals: the NOFO eliminates requirements related to workforce development, climate resiliency, and affordable broadband pricing — hallmarks of the Biden administration’s initial broadband strategy.

Although subgrantees must still offer a low-cost option, NTIA now bars states from setting specific pricing levels for those plans. The Communications Workers of America (CWA) called the rollback of labor requirements a step backward for both workforce development and quality job creation.

“This will hinder states’ ability to appropriately manage local workforce needs,”
– The Communications Workers of America (CWA) union said in a statement.

Drew Garner of the Benton Institute warned that the NTIA’s “shortsighted” guidance could hurt rural economic development and weaken U.S. global competitiveness. “China and Europe are going all in on fiber,” he noted, “while we’re choosing the cheapest option.”

Fixed Wireless Gains Ground

The revised NOFO dramatically expands eligibility for fixed wireless access (FWA) providers, including Wireless Internet Service Providers (WISPs) operating entirely on unlicensed spectrum — a class of deployment the Biden administration previously deemed unreliable.

While the new rules may expand competition, they could also complicate state broadband mapping. States will need to consult FCC data to determine if any unlicensed FWA providers already serve BEAD-eligible areas, potentially redrawing coverage maps and shrinking the pool of locations available for grants.

In Levin’s view, “this will reduce the potential market size for all bidders.”

With every state back at the starting line, the NTIA’s BEAD reboot marks a dramatic and controversial inflection point in the nation’s broadband strategy — one that could define digital infrastructure for years to come.