NEW ORLEANS -- Recent changes to NTIA's $42.5 billion BEAD program are creating uncertainty for states, some broadband experts said during the National Association of Telecommunications Officers and Advisors’ annual policy conference here Tuesday. Concerns were raised about federal funds potentially supporting satellite broadband in areas where residents have shown little interest in it and about NTIA’s decision to remove its preference for fiber.

The FCC’s top telecom priorities include the components of Chairman Brendan Carr’s “Build America Agenda,” stabilizing USF and deregulation, agency Chief of Staff Scott Delacourt said. NTIA Principal Deputy Assistant Secretary Adam Cassady said finishing BEAD "is job one," but other tasks include space policy revisions and identifying spectrum for commercialization. The two spoke Monday at Technology Policy Institute’s annual Aspen Forum.

An NTIA policy change to make it easier for internet service providers to obtain bank letters of credit so they can participate in the BEAD program will take effect Aug. 24, mimicking a similar policy change at the FCC. The FCC adopted an order in December (see 2412110050) dropping the requirement that banks qualified to issue such letters of credit have a minimum safety rating under the Weiss rating system, requiring only that they be “well capitalized.” An NTIA waiver update released late last month mirrors the FCC policy for the BEAD program, and takes effect at the same time as the FCC rule change. In addition, NTIA will allow financial institutions rated as safe by ratings organizations recognized by the SEC to issue letters of credit for the BEAD program, the update said.

While SpaceX is challenging at least one state, saying it was unfairly precluded from BEAD locations it should have won, a Vernonburg Group analysis points to low earth orbit (LEO) satellites being able to serve at most 26% of BEAD-eligible unserved and underserved locations nationwide. That lines up with the concerns of fiber advocates and others about LEO networks' ability to meet the legislative definition of a priority project -- such as delivering 100/20 Mbps service -- at BEAD scale, former BEAD Director Evan Feinman told us.

Starlink parent SpaceX urged Virginia to reconsider its final BEAD plans, saying the commonwealth failed to comply with NTIA's new program rules. "Simply put, Virginia has put its heavy thumb on the scale in favor of expensive, slow-to-build fiber bias over speedy, low cost, and technology neutral competition," the company said in a letter Thursday. SpaceX accused Virginia of failing to run a competitive process, not being technology neutral, and disregarding program rules.

Broadband experts applauded state officials for moving quickly to submit new BEAD proposals to NTIA following the agency's June 6 policy restructuring notice for the program (see 2507290070), but they warned that the delays are only furthering the digital divide.

NTIA should consider letting states have the final say about which locations count as community anchor institutions under the BEAD program, the Schools, Health & Libraries Broadband Coalition and Benton Institute for Broadband & Society said in a letter Monday. The groups raised issue with NTIA's new definition of "community support organizations" because the Infrastructure Investment and Jobs Act made the definition intentionally broad for states to meet local needs.

As states race to meet NTIA's Sept. 4 deadline to submit their revised final BEAD plans under the agency's new rules, the future of the program's non-deployment funding is in “uncharted territory,” wrote CCG Consulting President Doug Dawson in a blog Wednesday. Dawson raised questions about whether NTIA can ignore Congress’ directive to spend the full $42.5 billion on both broadband infrastructure and non-deployment initiatives (see 2507300011). Although NTIA didn't definitively eliminate non-deployment uses for BEAD funding, Dawson noted that some in the industry believe the agency might “kill all non-deployment funds as a way to take credit for ‘returning’ money to Treasury,” while others remain hopeful NTIA will allow certain projects. He warned that the shift could also lead to “significantly less BEAD funding for fiber and more for satellite and fixed wireless broadband” after the agency removed its fiber-first preference. "It’s one thing for the White House to issue executive orders that countermand Congressional spending," Dawson wrote: "It’s a whole lot fuzzier if an agency like NTIA can directly ignore Congress."

WISPA urged state broadband leaders to keep any BEAD funds not spent during deployment to invest in non-deployment needs, such as fixed-wireless access networks. Whether BEAD funding could be used for non-deployment initiatives was an initial concern when NTIA amended its BEAD rules (see 2506180077). However, WISPA State Advocacy Director Steven Schwerbel said in an email to state officials Tuesday night that eligible entities by statute may award BEAD subgrants for broadband adoption and other non-deployment purposes. He encouraged states to plan non-deployment programs, noting that investing in fixed-wireless networks and other technologies will "pay dividends" in getting communities online faster and developing targeted programs for broadband workforce and digital literacy efforts.

Oregon wrapped up the first of its two remaining phases in the BEAD grant process on Sunday. The Oregon Broadband Office closed its scoring phase that night, having reviewed and scored all submitted grant applications. The office now enters the negotiation phase, during which it will collaborate with applicants to finalize project locations and costs. It has until Sept. 4 to submit its final plan, including selected projects, to the NTIA.