- NTIA’s Roth said BEAD providers must agree not to take additional federal subsidies
- The agency clarified this rule won’t apply to providers that already receive support for non-BEAD areas
- But it still gives ISPs fewer options to fund costly rural builds
Just when we thought the Broadband Equity, Access and Deployment (BEAD) program has seen enough adjustments, NTIA Administrator Arielle Roth indicated BEAD participants would have to forego other federal funding or else lose out on their money.
Providers must certify to the NTIA “in writing” that they will not require or take additional federal subsidies – including operational subsidies – to complete or operate their BEAD projects, said Roth at a Hudson Institute event last week.
“Those unwilling to make that commitment will not get an award,” she said. “Their proposed service areas will instead go to entities that can and will deliver.”
Prime examples of operational broadband subsidies include the Universal Service Fund (USF) and the Enhanced Alternative Connect America Cost Model (A-CAM) program. The latter provides roughly $18.5 billion in support to a total of 368 operators.
Roth’s comments first implied NTIA’s new rule would impact providers that already use federal subsidies to support broadband operations. However, the agency this week issued a follow-up statement clarifying the restriction only applies to BEAD project areas.
“As Administrator Roth made clear in recent remarks, BEAD subgrantees must certify that they will not rely on speculative or uncertain future subsidies to serve their BEAD project areas. This requirement applies only to BEAD-funded projects and does not affect existing subsidies in non-BEAD areas to which a provider is already entitled,” an NTIA spokesperson told Fierce.
Shirley Bloomfield, CEO at NTCA – The Rural Broadband Association, told Fierce she was concerned an opex subsidy restriction might “disrupt existing ongoing support” if an operator planned to leverage BEAD along with other funding – including private capital – to upgrade their already-built network.
While existing support will be left alone, NTIA appears to be closing the door for ISPs to apply for future funding to keep broadband networks running in high-cost rural locations.
As the Community Broadband Action Network noted, the cost of maintaining a connection that runs about 50 miles away from the nearest town “will always exceed the revenue from one or two subscribers,” which is just “the inherent economics of rural infrastructure.”
Bloomfield pointed out the Federal Communications Commission (FCC) a couple of years ago opened a proceeding to examine how much operational support operators might need even after a “full-service network” is built.
The FCC nowadays is more focused on reducing rather than adding regulatory requirements. But she argued the subject of operating subsidies is still worth talking about.
“As a matter of good public policy, a broader, thoughtful conversation is needed about the interplay of initial deployment objectives and the separate statutory mission of universal service,” Bloomfield said.
Risk of RDOF repeat
The reason behind the new NTIA requirement, according to NTIA, is to reduce the chance of providers backing out of BEAD.
Defaults have particularly plagued programs like the $9.2 billion Rural Digital Opportunity Fund (RDOF), which as of 2025 has seen $3.3 billion worth of projects go into default.
"This is essential to protect the program, since a subgrantee that depends on hypothetical future funding to fulfill its BEAD obligations is, by definition, exposing the program to default risk," said the NTIA spokesperson.
Roth touched upon the importance of avoiding BEAD defaults at September’s Tech Expo, where she confirmed NTIA is asking states to lower costs for certain BEAD projects (likely ones that prioritized fiber) and request those providers to submit a “best and final offer.”
New requirements around cost caps and the use of other federal support emerge as most states states wrap up their second round of BEAD bidding.
As of November 3, 53 out of 56 states and territories have submitted their final proposals to NTIA. The remaining three – California, Puerto Rico and the Virgin Islands – have extensions and will submit their proposals “in the coming weeks,” noted NTIA.
Still hope for BEAD non-deployment money
Another pressing BEAD question is whether states will be able to keep the leftover money post-deployment and use it for other efforts to close the digital divide.
According to Roth, non-deployment funds could still be in the cards.
“NTIA is also considering how states can use some of the BEAD savings—what has commonly been referred to as nondeployment money—on key outcomes like permitting reform,” she said. “No final decisions have been made, but this could be a powerful way to advance BEAD’s goals.”
Drew Garner, director of policy engagement at the Benton Institute, told Fierce he’s encouraged by Roth’s remarks. “Congress explicitly created non-deployment to ensure BEAD networks are deployed efficiently and deliver maximum value,” he added.