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Perspectives from FSF Scholars

October 7, 2026

 
 
 

Let the BEADs Settle: Congress Should Pause the Subsidy Pipeline

 

by

 

Andrew Long

[Below is the Introduction and Summary to this latest FSF Perspectives. A PDF version of the complete Perspectives, with Further Readings, is here.]

 

Introduction and Summary


When it comes to in-progress public and private efforts to achieve the policy goal of universal broadband access, the sheer number of moving parts is daunting. According to a Government Accountability Office (GAO) report, as of 2022 there were over 130 different funding programs, overseen by 15 different agencies, available to support broadband infrastructure with various subsidies. All the while, privately funded providers continue to invest heavily in their networks. A recent study by USTelecom - The Broadband Association revealed that broadband providers spent $96.2 billion in 2025 alone – and have spent nearly $2.3 trillion since 1996. (Those figures do not include investment by all providers, most notably low-Earth orbit (LEO) satellite operators.)

 

Meanwhile, the universe of unserved locations in need of government subsidies is in constant flux. Regular updates to the FCC's National Broadband Map improve its accuracy, adding locations to, and removing them from, the unserved total. The expanding reach of the aforementioned LEO satellite-based offerings effectively covers ever more locations, especially in rural areas. On the other side of the equation, some grant awardees are declining Broadband Equity, Access, and Deployment (BEAD) Program awards for various stated reasons, including rising costs and a range of pole-attachment roadblocks, while others have had their BEAD Program awards rescinded amid allegations of misuse of funds, including a high-profile example in Colorado involving over $100 million.

 

The federal government's flagship funding program, the $42.45 billion BEAD Program managed by the National Telecommunications and Information Administration (NTIA), is doing its best to respond in real time to changes on the ground. Assistant Secretary of Commerce for Communications and Information and NTIA Administrator Arielle Roth recently reported that the "Benefit of the Bargain" round of revisions to state proposals, which rejected the Biden Administration's fiber-at-all-costs approach and instead reembraced the principle of technological neutrality, generated roughly $21 billion in cost savings. The agency she leads intends to allow states to use that money to connect unserved locations that were identified after their proposals were approved or that were slated to be addressed by entities awarded grants from other programs that subsequently defaulted on those commitments.

Not surprisingly, policymakers are finding it challenging to keep up with all these developments. As but one stark example, the FCC, in its 2026 Section 706 Report released in August, noted that its Broadband Funding Map, a tool intended to facilitate interagency coordination, "does not yet include all of the funding commitments made as part of" the BEAD Program.

 

Have Congress and the various agencies responsible for distributing broadband infrastructure deployment subsidies allocated too much, allocated too little, and/or misallocated funding to locations already served? Today it is impossible to say – and that is precisely the concern. For as I cautioned in a November 2022 Perspectives from FSF Scholars, "the appropriation of more money than the objective requires invites waste, fraud, and abuse, along with private investment-suppressing overbuilds of existing broadband infrastructure."

 

Until the impact of subsidized construction projects already underway, many with multiyear buildout deadlines, is readily apparent, it would be prudent for Congress to pause the appropriation pipeline, lest more taxpayer dollars than necessary be spent. Pending legislative proposals – such as the Agricultural Act of 2026, which would authorize the appropriation of $100 million annually for fiscal years 2027 through 2031 – should move forward only if, at an appropriate point in the future, an evidence-driven determination is made that additional money in fact is required.

 

And, importantly, given the current level of uncertainty, including whether any more subsidies at all are needed to complete the largely achieved goal of universal broadband deployment, Congress should make no definitive judgments now regarding reform of the Universal Service regime. This is especially true with regard to the High-Cost Fund. This does not mean that the ongoing congressional efforts to reform the Universal Service regime should not continue. But it does mean it would be ill-advised to lock-in additional deployment subsidies before the impact of already committed federal spending becomes much clearer.

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