Broadband grants $42B broadband grant program may scrap Biden admins preference for fiber NTIA nominee to rework Broadband Equity, Access, and Deployment program. Jon Brodkin Feb 4, 2025 2:25 pm | 40 Credit: Getty Images | Yuichiro Chino Credit: Getty Images | Yuichiro Chino Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreUS Senator Ted Cruz (R-Texas) has been demanding an overhaul of a $42.45 billion broadband deployment program, and now his telecom policy director has been chosen to lead the federal agency in charge of the grant money."Congratulations to my Telecom Policy Director, Arielle Roth, for being nominated to lead NTIA," Cruz wrote last night, referring to President Trump's pick to lead the National Telecommunications and Information Administration. Roth's nomination is pending Senate approval.Roth works for the Senate Commerce Committee, which is chaired by Cruz. "Arielle led my legislative and oversight efforts on communications and broadband policy with integrity, creativity, and dedication," Cruz wrote.Shortly after Trump's election win, Cruz called for an overhaul of the Broadband Equity, Access, and Deployment (BEAD) program, which was created by Congress in November 2021 and is being implemented by the NTIA. Biden-era leaders of the NTIA developed rules for the program and approved initial funding plans submitted by every state and territory, but a major change in approach could delay the distribution of funds.Cruz previously accused the NTIA of "technology bias" because the agency prioritized fiber over other types of technology. He said Congress would review BEAD for "imposition of statutorily-prohibited rate regulation; unionized workforce and DEI labor requirements; climate change assessments; excessive per-location costs; and other central planning mandates."Roth criticized the BEAD implementation at a Federalist Society event in June 2024. "Instead of prioritizing connecting all Americans who are currently unserved to broadband, the NTIA has been preoccupied with attaching all kinds of extralegal requirements on BEAD and, to be honest, a woke social agenda, loading up all kinds of burdens that deter participation in the program and drive up costs," she said.Impact on fiber, public broadband, and low-cost plansMunicipal broadband networks and fiber networks in general could get less funding under the new plans. Roth is "expected to change the funding conditions that currently include priority access for government-owned networks" and "could revisit decisions like the current preference for fiber," Bloomberg reported, citing people familiar with the matter.Reducing the emphasis on fiber could direct more grant money to cable, fixed wireless, and satellite services like Starlink. SpaceX's attempt to obtain an $886 million broadband grant for Starlink from a different government program was rejected during the Biden administration.Republicans and ISPs have objected to the NTIA's enforcement of the legal mandate that Internet providers receiving federal funds offer at least one "low-cost broadband service option for eligible subscribers." Although this requirement is part of the law that created BEAD, Republicans and ISPs say the Biden NTIA went too far when it urged states to set a fixed rate of $30 per month for the low-cost service option.At the Federalist Society event, Roth said that "requiring states to choose a state-wide, low-income rate is just one of the ways they've imposed extralegal requirements. There's also climate change regs, union mandates, wholesale access requirements... all kinds of left-wing priorities on the program that divert resources away from the overall goal of closing broadband gaps. This is going to make the program less cost effective and it's going to undermine its goals."Federal Communications Commission Chairman Brendan Carr, who repeatedly criticized the Biden NTIA's handling of BEAD, said that Roth "will be a terrific leader at NTIA." Roth worked for the FCC during the first Trump administration as a legal adviser in the Wireline Competition Bureau, and later a wireline adviser for Republican FCC Commissioner Michael O'Rielly.Industry lobby groups want different rulesIn the law that created BEAD, Congress defined priority broadband projects as those that "ensure that the network built by the project can easily scale speeds over time to meet the evolving connectivity needs of households and businesses; and support the deployment of 5G, successor wireless technologies, and other advanced services."The Biden NTIA concluded that end-to-end fiber-optic architecture is the only technology that achieves those goals. "End-to-end fiber networks can be updated by replacing equipment attached to the ends of the fiber-optic facilities, allowing for quick and relatively inexpensive network scaling as compared to other technologies. Moreover, new fiber deployments will facilitate the deployment and growth of 5G and other advanced wireless services, which rely extensively on fiber for essential backhaul," the Biden NTIA said.Lobby groups for non-fiber ISPs hope that decision will be reversed, and they welcomed Roth's nomination. "We look forward to working with Arielle as she takes the reins at NTIA, especially to help put the BEAD program on a better and more successful course," said America's Communications Association, a cable lobby group.The Wireless Internet Service Providers Association said that "Roth's work with Senator Ted Cruz on BEAD is especially encouraging, illuminating a path to correct that off-track program." The group said the program's funding decisions should be "tech-neutral" so that fixed wireless ISPs have a better chance of obtaining grants.Jon BrodkinSenior IT ReporterJon BrodkinSenior IT Reporter Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry. 40 Comments