Why Biden’s $42 Billion Broadband Program Has Not Connected One Single Household

Biden’s $42 Billion Broadband Program: Delays and Challenges

President Joe Biden’s ambitious Broadband Equity, Access, and Deployment (BEAD) program, aimed at connecting every American to reliable, affordable high-speed internet by the end of the decade, has faced significant delays and criticisms despite its substantial funding of $42 billion.

Funding and Objectives

The BEAD program, part of the Infrastructure Investment and Jobs Act of 2021, allocates $42 billion to states and territories based on the number of households lacking access to high-speed internet. The program defines high-speed internet as a download speed of at least 25 megabits per second and an upload speed of 3 megabits per second (25/3 Mbps), and “underserved” areas as those lacking access to 100/20 Mbps.

Delays and Bureaucratic Red Tape

Despite the lofty goals, the program has yet to connect a single household to the internet. The primary reason for this delay is attributed to bureaucratic red tape and stringent regulatory requirements. Republican FCC Commissioner Brendan Carr and several Republican senators have criticized the National Telecommunications and Information Administration (NTIA) for imposing a complex, nine-step approval process that has mired state broadband offices in excessive bureaucracy.

The NTIA’s requirements, including the need for providers to offer low-cost service options and prioritize certain segments of the workforce such as individuals with past criminal records, have been particularly contentious. These mandates have discouraged participation from broadband providers and increased the overall cost of building out broadband networks.

State-Level Frustrations

States like Virginia, which was among the first to complete its application for the federal broadband money, have faced significant delays. The issue in Virginia has been the federal affordability requirement, which telecommunications companies argue is too tight. This has led to lengthy negotiations over the terms of their plans, delaying the rollout. Virginia’s Governor Glenn Youngkin expressed concern that other states might hire Virginia’s workers if they received the funding first.

Private Sector Advances

While the BEAD program struggles to get off the ground, private broadband companies have been making significant strides in expanding internet access. According to a report by the America’s Communication Association (ACA), nearly 88 percent of households already have access to at least two competitors offering 25/3 Mbps service, and 85 percent have access to at least one operator offering 100/20 Mbps service and a competitor offering 25/3 Mbps service. By 2025, the ACA projects that 95 percent of households will have access to at least 100/20 Mbps service.

The U.S. Telecom Association reported that private companies invested $86 billion in 2021 alone to build out their broadband networks, resulting in faster and increasingly cheaper internet services. As of the first quarter of 2023, 90.5 percent of American households were already signed up for internet download speeds of 100 Mbps or more.

Political Implications

The delays in the BEAD program have political implications, particularly in swing states like Virginia. The program’s slow progress has turned what could have been a victory lap for the Biden-Harris administration into a focal point for criticism. Republican members of Virginia’s congressional delegation have blamed the Biden administration for the delays, which they see as an embarrassment for politicians trying to defend the program.

The success or failure of the program could also be influenced by the upcoming elections. If Republicans gain control, they may rewrite the program’s rules, potentially dialing back the affordability and labor requirements that have caused friction.

Ongoing Challenges

Despite the federal government’s efforts, the BEAD program faces ongoing challenges. Many rural areas may not need the fiber cable prioritized by the BEAD funding, and instead could benefit from more flexible and cost-effective solutions like high-speed satellite options such as Starlink. The rigidity of the government program, which prioritizes one technology over others, may not be the most efficient way to address the diverse needs of different regions.

As the program continues to navigate these complexities, it remains to be seen when, or if, it will achieve its goal of connecting every American to high-speed internet. For now, the private sector continues to lead the way in expanding broadband access, leaving the BEAD program to catch up.