What happens to BEAD dollars after the last location is connected?

For years, the national broadband conversation has focused on one question: when will the Broadband Equity, Access and Deployment program finally get networks built? That remains essential.

BEAD is a historic $42+ billion federal investment designed to connect unserved and underserved communities. All 56 states and territories are now approved to build, and state broadband offices are working through the complex process of turning plans into projects. 

Recently, the National Telecommunications and Information Administration announced guidance that directed states to use remaining BEAD funds to connect additional eligible locations before pursuing other activities, ensuring that as much funding as possible is dedicated to expanding broadband deployment.

But an important question remains for governors, state broadband offices and local leaders: what happens if states still have BEAD funds left after those additional deployment obligations are met? That question centers on the program's remaining "non-deployment" funds. Even after NTIA's new guidance prioritizes broadband construction, billions of dollars could remain available for other eligible investments, making the future use of those funds a significant policy and implementation issue.

The answer will help shape the next phase of broadband implementation. NTIA's newly released guidance provides greater clarity by prioritizing the use of remaining funds to reach more unserved locations. At the same time, it underscores the importance of determining how any funds left over after deployment can be used to maximize the long-term value of the federal broadband investment.

For states, the decisions surrounding those remaining resources could influence everything from workforce development and adoption efforts to the resilience and sustainability of newly built networks. The key point is simple: non-deployment funding cannot be an afterthought if the BEAD program is to achieve its goals and truly close the digital divide.

BEAD non-deployment funds generally refer to broadband-related uses beyond directly subsidizing the construction of last-mile networks. While future NTIA guidance will define the boundaries, Congress provided that these funds can be used to support additional efforts that further the BEAD Act's goals. Supporting the practical systems and capabilities that make broadband deployment more successful would help communities turn infrastructure funding into lasting results: planning, permitting, workforce development, digital adoption, technical assistance, public safety connectivity, mapping, coordination and other activities.

It’s easy to think of broadband deployment as a purely financial endeavor, that once funds are given to states and then grantees, communities will surely be connected immediately, but that isn’t the case.  Even well-funded projects can be delayed by outdated permitting processes, labor shortages, lack of coordination among agencies, or gaps between new infrastructure and the residents, businesses and public institutions that need to use it.

One high-value use should be expanding the impact of BEAD-funded fiber deployment to improve mobile broadband coverage. Many rural and remote communities still face frustrating mobile dead zones that affect public safety, emergency response, tourism, agriculture, small businesses and daily life. This is because deploying the infrastructure necessary to fill the dead zones remains uneconomic. 

As fiber reaches farther into underserved areas, states should consider how that capacity can also support wireless facilities, backhaul, resiliency and future network upgrades that will now be more feasible due to the fiber investment.

As everyone with a smartphone knows, connectivity today is not only about whether a home can receive fixed broadband service; it is also about whether residents, first responders, workers and visitors can stay connected wherever they live, travel and work. Simply put, enhancing mobile connectivity is a win for everyone in modern America.

A second priority should be workforce development. Broadband projects require skilled workers to build, maintain and upgrade networks. Without enough trained technicians, tower crews, fiber installers, project managers and safety-certified workers, deployment timelines will slip. Non-deployment funds can help states build durable training pipelines through community colleges, apprenticeships, workforce boards, veterans programs and industry partnerships. Done well, these investments can support BEAD implementation while also creating long-term career pathways in local communities that last far beyond BEAD.

Permitting modernization should also be a focus for these funds. This may be one of the most practical and highest-return uses of non-deployment funding for governments. State and local leaders know that infrastructure projects often move only as fast as the approval systems behind them. And one recent report suggested that BEAD projects across the nation will require as many as 86,000 permits. 

Digital permit portals, standardized application requirements, clearer timelines, better interagency coordination, staff training and transparent tracking tools can reduce delays for BEAD projects and improve the way governments manage future infrastructure work. Further, these process improvements can support communities well past BEAD projects to make permitting all around more efficient for the future.

These three priorities share one more advantage: their impact is easy to measure. NTIA has been clear that it expects real, measurable outcomes from every BEAD dollar, and non-deployment investments should be built to prove their impact from day one: dead zones closed and coverage verified; technicians trained, credentialed and placed into jobs; permits processed in days instead of months.

Mobile coverage, workforce development and permitting modernization are the uses where progress is easiest to count, compare across states and show to taxpayers. Stakeholders should build upon the compliance processes learned through deployment programs and ensure tracking and reporting from non-deployment programs build the evidence base that makes the case for this kind of investment long after BEAD.

Future federal guidance will matter, but state and local leaders do not need to wait to prepare. Counties and municipalities should be identifying permitting bottlenecks, workforce gaps, public safety connectivity needs and mobile coverage challenges now. They should also work with state broadband offices to ensure that eligible non-deployment proposals are practical, measurable and tied to the success of the overall BEAD program. 

Just like NTIA, states and local governments should work with stakeholders to find out where the most acute needs are and how non-deployment funds can be used to address the issue. Targeted investment will improve deployment timelines and government operation, support the local economy and provide maximum “Benefit of the Bargain” for taxpayers, who will see their communities connected faster and cheaper without unnecessary roadblocks.

BEAD will ultimately be judged not only by how many miles of fiber are built or how many locations are connected, but by whether communities are better able to communicate, work, learn, respond to emergencies and grow. Non-deployment funds can help make that happen. Used wisely, they can build not only broadband capacity, but community capacity — the systems, people and partnerships that make public investment last.

Mike Saperstein is senior vice president of government affairs at the Wireless Infrastructure Association.