Just a Speed Bump or Is the Broadband Bus Running on Empty?

In June 2023, the National Telecommunications and Information Agency (NTIA) announced that Missouri had been allocated over $1.7 billion through the federal Broadband Equity, Access, and Deployment (BEAD) program, to expand high-speed internet access to more than 200,000 unserved and underserved locations across the state. This was the third highest amount of set aside for any state, with only California and Texas receiving larger allocations. The  BEAD funding was part of the Infrastructure Investment and Jobs Act (IIJA) enacted back in 2021, and the amount represented a historic opportunity to close Missouri’s digital divide and stimulate economic growth especially in rural unserved and underserved communities.

However “allocating” money isn’t the same thing as distributing it … either to the state or to the ISPs that will ultimately construct and operate new internet networks that ultimately will construct and operate new internet networks. Actually getting the money to where it could be used for an internet construction project has been painfully slow. At this point no money BEAD has been committed to a broadband project in Missouri, and it is looking less likely that any will be at this year.

This Blog describes why that’s happened, and suggests some steps communities might consider as we wait for the money.

BEAD Funding …. It’s a Process.

Even though BEAD was enacted in 2021 the “roll out” almost immediately encountered a substantial delay. It took a year and a half for the FCC to put together a set a map that NTIA could use to apportion the $44.24 billion Congress made available among the states. Much of that delay occurred because the FCC refused to begin working on the maps until Congress appropriate money specifically to fund the cost of preparing maps. Once the mapping process was completed, NTIA then required states to complete a multistage process that was roughly based on requirements outlined in the BEAD statute.

NTIA’s process required states to first determine locations eligible for funding and to create a procedure for selecting which ISPs would receive BEAD money. States were required to submit this procedure to NTIA for approval (Preliminary Plan Approval). Once Preliminary Plan Approval occurred, each state had one year to actually identify project locations eligible for funding and to conduct the  competitive process to select ISPs to build the broadband infrastructure using BEAD funds. The result of this work also had to be submitted to NTIA as the state’s Final Plan, and NTIA then would have an undetermined length of time to “approve it” (Final Plan Approval). Only after Final Plan Approval would ISPs selected in the state’s competitive grant process actually be assured they actually would receive the BEAD money, once the project was completed in accordance with the grant requirements.

Missouri Receives Preliminary Approval from NTIA and the Project Selection Process Begins

It took NTIA over a year (August 2, 2024) to give Missouri “Preliminary Plan Approval.” Thereafter, Missouri’s Office of Broadband Development (OBD) made significant progress moving toward a completion of a Final Plan for NTIA’s Final Plan Approval. Last year OBD conducted a rigorous challenge process to ensure that the locations designated as eligible for BEAD funding were accurate. It prequalified ISPs to streamline the process of reviewing ISP proposals to provide service in those areas, and it completed a first round of  BEAD funding applications, receiving 519 applications covering 192,284 locations-about 90% of the sites eligible for BEAD money.

A Short Pause…Or a Substantial Multi-Year Delay?

The acronym BEAD stands for Broadband Equity Access and Deployment, and for that reason alone, it’s not surprising that the incoming Trump administration would want some changes. NTIA is part of the Commerce Department, and  Commerce Secretary Howard Lutnick has consistently criticized the BEAD program for what he describes as “woke mandates,” including labor and climate-related requirements, and a “favoritism towards fiber-optic technology” that he believed needlessly inflated project costs and delayed infrastructure deployment.

During his January 2025 Senate confirmation hearing, Secretary Lutnick declined to commit to honoring NTIA’s existing Preliminary Plan Approvals, stating he would review plans for efficiency and alignment with “lowest cost” objectives. In March 2025, he announced a 90-day review focused on  Biden-era rules, prioritizing a tech-neutral approach (including satellite and fixed wireless) and streamlining infrastructure construction. The goal of this approach he argued was to accelerate deployment and reduce taxpayer costs. That has since been followed by an across the board 90 day extension in the date States must submit their Final Plan for NTIA approval.

Meanwhile, in March, congressional Republicans introduced the SPEED for BEAD Act to codify some of Secretary Lutnick’s priorities. Key provisions of this bill include:

               •Mandating technology neutrality, removing fiber-first preferences.

               •Eliminating labor (e.g., prevailing wage) and climate resilience requirements for broadband infrastructure.

               •Restricting BEAD funds to for infrastructure deployment only, blocking states from allocating funds for digital equity or workforce programs.

               •Requiring states to prioritize cost-effectiveness in subgrantee selection.

The legislation aligns with broader GOP efforts to redirect BEAD toward “shovel-ready” projects. Undoubtedly, it also puts fixed wireless providers and satellite providers in a much more competitive position as well, as they generally are less costly, at least in the short run, when compared to fiber to the premises broadband.

Of course, there are solid arguments supporting all of these proposals, and admittedly, the speed of implementing BEAD up to this point has been discouraging. However, the prospect of forcing states to throw out the work they’ve already done, and restart the planning and approval process under a new set of guidelines, is pretty disheartening, not only for the ISPs that proposed under Missouri’s approved Preliminary Plan, but to the communities hoping to finally get internet service as well. A recent opinion piece by Missouri Representative Louis Riggs, did a good job of expressing these concerns, and frustration with the delay and the change in approach.

Missouri stakeholders—including ISPs, local governments, and bipartisan state legislators-have expressed concern about mandatory federal changes forcing states to restart or revise their BEAD plans. A letter signed by 115 state legislators from 28 states urged Secretary Lutnick to make any changes to BEAD optional rather than mandatory to avoid undermining state authority and delaying broadband deployment, but even if changes are made optional at the state level, it seems likely that Missouri officials will want to carefully consider whether to go forward with the existing grant applications, or adopt the new standards.

While nothing can be said with certainty, it seems likely that even under comparatively optimistic timeframes, Missouri now will not be able submit a Final Plan for NTIA approval until late this year, and of course NTIA approval might take many months more. If the Trump administration chooses to focus efforts on passing the “Speed for BEAD Act” it seems likely that much of what OBD did this past year will need to be redone to allow new applications and proposals for funding that allow more wireless projects, and eliminate environmental and prevailing wage requirements.

Funding Under USDA Programs Seems Uncertain.

Although funding promised to Missouri under BEAD has dwarfed other federal programs, over the past several years the Department of Agriculture (USDA) has provided funding assistance through grants and loans for many rural communities as well. Two programs in particular administered by USDA are the Reconnect and the smaller, Telecommunications Loan Program. Unfortunately things don’t look promising here either. The Trump Administration’s Director of the Office of Management and Budget (OMB) has directed that funding under both of these eliminated, because they are duplicative.

Other Broadband Funding Options for Missouri Communities

Given the uncertainty around BEAD’s timeline and rules and the probable elimination of other federal programs, Missouri communities and ISPs may want to again explore other funding avenues to continue broadband expansion efforts. Missouri law authorizes several mechanisms to finance broadband infrastructure, including issuing tax-exempt bonds for Qualified Broadband Projects, Community Improvement Districts (CIDs), Neighborhood Improvement Districts (NIDs), Tax Increment Financing (TIF), and property and sales tax exemptions for broadband projects. These are outlined in a White Paper previously published on MoBroadband. You can find the White Paper [Here].

What’s next?

Well, the short answer is we don’t know. However, it is clear that many Missourians continue to lack a connection to reliable, affordable high speed internet, and the fact that Missouri received the third highest allocation of BEAD funding (even though the state ranks 19th in population), is compelling evidence that Missouri has a much larger connectivity problem than most other states. As long as this continues, it seems likely Missouri risks underperforming our peer states in the use of internet based applications that foster economic development, telehealth, and educational opportunity.