The Trump administration announced major changes to the $42.45 billion Broadband Equity, Access and Deployment (BEAD) program, eliminating preferences for fiber optic internet infrastructure. The change is expected to shift significant funding toward non-fiber technologies such as Elon Musk's Starlink satellite service, potentially allocating $10 billion to $20 billion to such providers.
The move marks a departure from the approach of the Biden administration, which has emphasized fiber optic networks as the most reliable broadband deployment option for the future.
The BEAD program was authorized by Congress in November 2021, with rules set by the National Telecommunications and Information Administration (NTIA) under the Biden administration. These rules prioritize end-to-end fiber optic architecture because it can be easily upgraded by replacing equipment at both ends of the fiber optic facility.
This approach also supports the deployment of 5G and other advanced wireless services, which rely heavily on fiber for backhaul. However, the Trump administration has criticized the rules as being overly restrictive and ineffective.
U.S. Commerce Secretary Howard Lutnick, who has been emphasizing the need for change, said the program was not connecting anyone to the internet due to "eye-catching mandates, favoritism for certain technologies, and burdensome regulations."
The Trump administration is taking a "technology-neutral" approach to providing Internet access at the lowest cost to taxpayers. This shift includes exploring ways to efficiently and effectively deliver high-speed Internet access by reducing the administrative processes that slow down infrastructure development.
The decision to end the fiber-focused policy was criticized by Democrats and advocacy groups. House Commerce Committee ranking member Frank Pallone Jr. accused Republicans of undermining efforts to deploy reliable, affordable broadband and called Elon Musk a "liar."
The Benton Institute for Broadband & Society expressed concern that the shift could leave millions of people with slower and less reliable internet, as fiber-optic broadband has faster speeds, higher bandwidth, and symmetrical upload and download speeds, making it ideal for demanding applications such as telemedicine and gaming.
Despite these concerns, the Trump administration is pushing ahead with reforms aimed at reducing bureaucratic hurdles and speeding up infrastructure development. Republicans are also proposing changes to the legislation to remove what they see as onerous conditions imposed by the Biden administration.
Starlink, meanwhile, could benefit greatly from these changes, potentially receiving significant funding through the BEAD program and other federal programs. The Federal Communications Commission could also provide more funding to Starlink through the universal service program, although the commission is not directly involved in the BEAD program.
The shift in policy also raises questions of conflicts of interest, especially given Elon Musk's role in the Trump administration. Recent reports suggested Starlink could take over a $2 billion Federal Aviation Administration contract, but SpaceX has denied seeking to replace existing contracts. Brendan Carr, the newly appointed chairman of the Federal Communications Commission, has expressed support for Starlink, which could pave the way for future funding.