Fixing Biden’s Broadband Blunder

Environmental Permitting and Water InfrastructureHouse Energy and Commerce Subcommittee on Communications and Technology · March 5, 2025 · 119th Congress
The House Energy and Commerce Subcommittee on Communications and Technology held this hearing to examine why the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program had not yet connected a single home three years after passage of the Infrastructure Investment and Jobs Act, and to consider Chairman Hudson's "Speed to BEAD Act" reforming the program's rules. Begins at ▶ 0:07:34
Transcript
Highlights

Title

Reforming the BEAD broadband program amid Trump administration delays

Purpose

The House Energy and Commerce Subcommittee on Communications and Technology held this hearing to examine why the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program had not yet connected a single home three years after passage of the Infrastructure Investment and Jobs Act, and to consider Chairman Hudson's "Speed to BEAD Act" reforming the program's rules. Witnesses from industry associations, a rural cooperative, and a former NTIA official testified about regulatory burdens, permitting delays, the Universal Service Fund's pending Supreme Court case, and the Trump administration's newly announced review of BEAD. Begins at▶ 0:07:34

Who spoke

• Chairman Richard Hudson (R-NC)▶ 0:07:34: Said no BEAD-funded home has yet been connected after three years, blamed Biden-era labor, climate and rate-regulation requirements for delays▶ 0:08:34, and touted his Speed to BEAD Act and Secretary Lutnick's new program review▶ 0:09:35▶ 0:10:06.

• Rep. Doris Matsui (D-CA), Ranking Member▶ 0:12:07: Said the infrastructure law invested $65 billion including $42 billion for BEAD and nearly $3 billion for digital equity▶ 0:12:37, accused the Trump administration of "sabotaging" the program by freezing funds▶ 0:13:38, and warned against diverting money from fiber to Starlink▶ 0:15:10.

• Rep. Brett Guthrie (R-KY), Full Committee Chairman▶ 0:16:40: Said not one inch of fiber had been built in over 130 federal broadband programs across 15 agencies▶ 0:18:42, and urged Congress to affirm USF's constitutionality amid the Supreme Court case▶ 0:20:12.

• Rep. Frank Pallone (D-NJ), Full Committee Ranking Member▶ 0:21:12: Noted three states have approved final BEAD proposals and 30 more are in application rounds▶ 0:22:13, and cited a Wall Street Journal report that SpaceX/Starlink could receive up to $20 billion in BEAD funds▶ 0:22:43.

• Rep. Troy Carter (D-LA)▶ 0:24:14: Said Louisiana became the first state approved for its final BEAD proposal ($1.3 billion, ~140,000 locations, 20 ISPs)▶ 0:24:14, but said Commerce has since withheld final funding approval▶ 0:25:45.

• Grant Spellmeyer, ACA Connects▶ 0:27:47: Said his members' enthusiasm for BEAD waned due to NTIA's implementation▶ 0:29:49, cited a study estimating cumulative regulatory layering added roughly 60% in extra costs▶ 1:09:39, and said Pennsylvania prevailing-wage rules drove a 70% cost difference▶ 1:10:09.

• Tim Donovan, Competitive Carriers Association▶ 0:33:20: Called for sustaining and modernizing USF▶ 0:34:21, restoring FCC spectrum auction authority idle for nearly two years▶ 0:36:22, and warned the 5G Fund's outdated coverage maps could leave rural towers dark▶ 3:23:23.

• Greg Hale, LTC Connect (Auburn, KY)▶ 0:38:22: Said a negative USF ruling could push rural rates to an average $165/month▶ 0:40:24, and that his co-op would face devastating negative operating income without USF▶ 0:59:03.

• Sarah Morris, former Acting Deputy Administrator, NTIA▶ 0:43:26: Said three states have full BEAD approval and over half are reviewing ISP bids▶ 0:45:57, confirmed NTIA (not the White House) wrote the funding notice including labor and climate provisions▶ 0:48:59, and warned restarting state plans could set BEAD back years▶ 1:07:07.

• Rep. Rick Allen (R-GA)▶ 1:07:37: Cited project labor agreements disadvantaging low bidders▶ 1:09:08 and asked about workforce shortages, noting 7 million open U.S. jobs▶ 1:12:10.

• Rep. Darren Soto (D-FL)▶ 1:12:40: Read a constituent letter celebrating new Wi-Fi access▶ 1:13:10, and pressed Morris on how long a program "redo" would take, receiving the answer "years"▶ 1:16:41.

• Rep. Bill Long / Rep. Buddy Carter (R-GA)▶ 1:39:53: Promoted his American Broadband Deployment Act, projecting members could begin serving new customers by September 1 if enacted▶ 1:43:26.

• Rep. Debbie Dingle (D-MI)▶ 1:44:57: Said Michigan's plan risks restarting from square one, and cited Rural Digital Opportunity Fund's 37% default rate as a cautionary example▶ 1:48:29.

• Rep. Kathy Castor / Rep. Nanette Barragán (D-CA)▶ 1:56:03: Criticized Republicans for opposing the original infrastructure law while now claiming credit, and pressed on Elon Musk's potential conflicts of interest via Starlink▶ 1:59:05.

• Rep. Ryan Mackenzie (R-PA)▶ 2:01:36: Said Pennsylvania's prevailing-wage requirement forced a $90/hour electrician rate versus a traditional $16/hour telecom technician rate▶ 2:02:37.

• Rep. Troy Carter (D-LA), second round▶ 2:07:10: Reiterated Louisiana's bipartisan progress under Govs. Edwards and Landry and warned that reopening approved plans would cost more, not less▶ 2:10:12.

• Rep. August Pfluger (R-TX)▶ 2:12:43: Asked about Texas's ~20-30% prevailing wage cost increase and proposed a Broadband Buildout Accountability Act▶ 2:12:43.

• Rep. Kim Kamak / Rep. Kathy Castor (FL)▶ 3:08:15: Asked about standardizing requirements across 130+ broadband programs▶ 3:09:15.

• Rep. Robert Menendez (D-NJ)▶ 3:13:48: Defended the FCC's E-Rate hotspot lending expansion, noting 1,200 schools/libraries nationwide are applying for nearly 1 million hotspots▶ 3:15:19, and warned a Congressional Review Act resolution would repeal it▶ 3:15:49.

• Chairman Hudson, second round▶ 3:19:22: Described his own rural Indiana district's unserved status and confirmed zero BEAD funding had been distributed to providers as of the hearing▶ 3:20:52▶ 3:21:22.

• Rep. Jennifer McClellan (D-VA)▶ 3:24:53: Explained the multi-step BEAD mapping and challenge-process timeline, arguing delays to date reflect required planning steps, not permitting▶ 3:25:24.

• Rep. Russell Fry (R-SC)▶ 3:30:29: Highlighted Horry Telephone Cooperative's fiber buildout and asked about USF's role and Supreme Court risk▶ 3:31:29.

• Rep. Ritchie Torres (D-NY)▶ 3:35:32: Cited New York as one of 22 states through the BEAD challenge process and pressed on affordability provisions and workforce standards▶ 3:37:03.

Key moments

• Hudson stated that despite $42.5 billion appropriated over three years, not a single home has been connected through BEAD, and cited Secretary Lutnick's newly announced program review▶ 0:09:05▶ 0:10:06.

• Morris confirmed under chairman's questioning that NTIA itself, not the White House, drafted the funding notice including the disputed labor, climate, and low-cost-plan provisions▶ 0:48:59▶ 0:50:00.

• Pallone and Carter both cited a Wall Street Journal report that Commerce is considering diverting up to $20 billion in BEAD funds to Musk's Starlink▶ 0:22:43▶ 1:03:36.

• Spellmeyer's ACA Connects study found regulatory layering added roughly 60% in additional costs, with one Pennsylvania member reporting a 70% cost differential from prevailing wage rules▶ 1:09:39▶ 1:10:09.

• Mackenzie said Pennsylvania's BEAD wage rules require paying workers a $90/hour "electric lineman" rate versus the traditional $16/hour telecom technician rate, a roughly 50% premium▶ 2:02:37.

• Morris warned that a dramatic reset of state BEAD plans would take "years" to unwind and cited the Rural Digital Opportunity Fund's 37% default rate as a warning sign▶ 1:16:41▶ 1:48:29.

• Hale said a Supreme Court ruling striking down USF's funding mechanism could push rural rates to an average of $165 a month based on an NTCA member survey▶ 0:40:24.

• Carter of Louisiana said his state's approved $1.3 billion final proposal (140,000 locations, 20 ISPs) has been stalled since Trump took office, one week after approval▶ 0:24:14▶ 0:25:45.

• Menendez said 1,200 schools and libraries across 46 states are applying for nearly 1 million FCC E-Rate hotspots, a program Republicans have moved to repeal via Congressional Review Act▶ 3:15:19▶ 3:15:49.

• Donovan said the FCC's 5G Fund uses an "artificially low" speed threshold that could leave areas currently served via USF investment ineligible for new funding, causing existing towers to go dark▶ 3:23:23.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Communications and Technology
Chamber / CongressHouse · 119th Congress
DateMarch 5, 2025
TypeHearing
Witnesses
Grant Spellmeyer — President and CEO, ACA Connects
Greg Hale — CEO, LTC Connect
Tim Donovan — President and CEO, Competitive Carriers Association
Sarah Morris — Former Acting Deputy Administrator, National Telecommunications and Information Administration
Videoyoutube
Transcript329 caption blocks · 27,244 words · 3:41:40 runtime
EventCongress.gov 117982