United States: White House Announces $4.25 Billion In Broadband Funding Allocations

On June 26, 2023, the Biden Administration unveiled funding allocations for the $42.5 billion Broadband Equity, Access, and Deployment ("BEAD") program meant to rapidly expand affordable, high-speed broadband service across the country.

Texas was the largest funding recipient, with an award of $3.3 billion, followed by California ($1.86 billion), Missouri ($1.74 billion), Michigan ($1.56 billion), and North Carolina ($1.53 billion). In all, 18 states each were allotted more than $1 billion. And each state, plus the District of Columbia and Puerto Rico, received at least $100 million. The 10 states receiving the most broadband funding (see the table below) account for approximately $16.8 billion-or about 40% of the total amount to be distributed to the states, the District of Columbia, Puerto Rico, as well as the U.S. Virgin Islands, American Samoa, Guam and the Northern Mariana Islands.

Implemented by the Department of Commerce's National Telecommunications and Information Administration ("NTIA"), the BEAD program was established as part of the 2021 Infrastructure and Investment Act, which designated $65 billion for broadband infrastructure development. This week's funding allocations were informed in large part through data collection efforts by the Federal Communications Commission ("FCC") to map broadband service availability (and unavailability) across the United States and its territories ("eligible entities").

On June 30, 2023, NTIA will issue formal notices of the allocations that the White House announced yesterday. Eligible entities will then have 180 days (until December 27, 2023) to submit initial proposals describing how they propose to run their grant programs, but those initial proposals can be submitted essentially immediately-as of July 1, 2023. Once NTIA approves an eligible entity's initial proposal, it can request up to 20% of its entire BEAD allotment.

The Top 10 BEAD Allocations by State/Territory

A complete list of BEAD grants is available here.

***

Sheppard Mullin Communications Infrastructure Team to Hold Broadband Buildout Webinar on September 20, 2023

On September 30, 2023, the Sheppard Mullin communications infrastructure team will be hosting Building Better Broadband: A Practical Guide to Converting Federal and State Grants and Subsidies to Expand Broadband, a CLE that examines various issues surrounding implementation of federal and state funding for broadband expansion. This two-hour program will be a practical, hands-on and interactive session exploring the opportunities and challenges in building a more pervasive and inclusive national broadband infrastructure. CLE credits will be provided for California, New York, and Texas (Virginia is pending). More information on this seminar, including how to sign up, will be announced soon – but in the meantime feel free to contact us with any questions.