BEAD V.2? — Senator Ted Cruz is urging the suspension of the $42.5 billion BEAD program, claiming “significant changes” are imminent with the incoming Trump administration.
Senator Ted Cruz (R-Texas), the ranking member of the Senate Commerce Committee and its incoming chairman, has issued a stern warning to the National Telecommunications and Information Administration (NTIA) regarding what he deems “unlawful” activities in administering the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program. Cruz announced plans to review and potentially revamp the program when the GOP assumes control of both congressional chambers in 2025, focusing on what he calls extraneous mandates and mismanagement that hinder broadband deployment to unserved communities.
In a letter addressed to NTIA Administrator Alan Davidson, Cruz criticized the agency’s handling of the BEAD initiative, accusing it of creating bureaucratic obstacles that inflate costs and delay the program’s primary objective: expanding internet access to underserved areas. He alleged that the NTIA has spent over $250 million of BEAD funds on administrative expenses, including hiring government employees and contractors, without connecting a single household to broadband.
“The NTIA has repeatedly ignored the Infrastructure Investment and Jobs Act’s intent, diverting nearly $1 billion to build a central planning bureaucracy and impose burdensome mandates on states,” Cruz wrote. “These unauthorized directives stall deployment and tie up critical resources.”
Key GOP Concerns with BEAD Program
Cruz’s criticism centers on several NTIA policies that he claims overstep statutory boundaries:
- Technology Bias: A focus on certain technologies over others deemed less “reliable” by NTIA.
- Rate Regulation: Imposing price controls prohibited by law.
- Unionized Workforce and DEI Requirements: Mandating diversity, equity, and inclusion measures, and union labor in projects.
- Climate Change Assessments: Requiring states to include environmental considerations in their broadband plans.
- Excessive Per-Location Costs: Burdensome cost metrics slowing project approvals.
The senator vowed to use his upcoming chairmanship to hold NTIA accountable, investigate its spending and regulatory practices, and ensure that states have more flexibility in tailoring broadband solutions to their communities.
Calls for Transparency and Accountability
Cruz’s letter follows his August inquiry into NTIA’s allocation of BEAD funds, where he demanded a breakdown of the $849 million earmarked for administrative purposes. According to Cruz, NTIA has yet to provide sufficient answers, further fueling GOP frustration.
“NTIA’s withholding of actionable information and misuse of taxpayer dollars must end,” Cruz stated. He called for the agency to pause any new BEAD activities that could lock states into “unlawful and burdensome” agreements until Congress reviews the program.
NTIA Pushes Back on Criticism
Drew Garner, policy engagement director for the Benton Institute for Broadband & Society, countered Cruz’s claims, defending NTIA’s administration of both the BEAD program and its related $1.25 billion Digital Equity Competitive Grant Program. Garner argued that NTIA’s initiatives are critical to closing the digital divide and achieving equitable broadband access nationwide.
Despite these defenses, GOP leaders appear poised to challenge many of the program’s foundational requirements, signaling potential changes ahead for the BEAD program in 2025.
Looking Ahead
As Republicans prepare to take control of Congress, Cruz’s actions underscore a broader partisan battle over the direction of federal broadband policy. The GOP has expressed growing concern over what it views as excessive regulation and inefficiencies in federally funded broadband initiatives. Whether NTIA will adjust its policies in response to the pressure remains to be seen, but Cruz has made it clear that changes are on the horizon.
Congressional reviews and potential legislative changes to the BEAD program could significantly impact state-level broadband deployment plans, making this an issue to watch closely in the coming year.