Despite numerous signs that big changes are ahead for BEAD, states will likely stay the course on their programs and should, broadband consultants and others told us. The only smart play is for states to stay in close contact with NTIA and try to figure out what to expect, several said. Commerce Secretary Howard Lutnick said earlier this month that a review of BEAD rules was underway (see 2503050067), and the former head of the program, Evan Feinman, predicted rules changes were coming from the Trump administration (see 2503170045). Commerce didn't comment.
The Commerce Department’s long-awaited proposed rule on routed exports is essentially ready to be published, but it’s unclear how long it may take the new Trump administration to give the agency the green light, officials said last week.
The Bureau of Industry and Security hasn't yet lifted all the licensing holds that began for export applications in early February, a Commerce Department official said this week, although the agency is hoping to make progress on the holds soon.
The Federal Emergency Management Agency denied that it has frozen reimbursement payments to public broadcasters in response to CPB’s request that the U.S. District Court for the District of Columbia (docket 1:25-cv-00740-TJK) intervene (see 2503140060). A docket entry Monday said that the court had denied CPB's motion for a temporary restraining order. “The Agency is taking no such action -- there has been no withholding of funding,” said FEMA in a filing opposing CPB's request Saturday. “Rather, the Agency has modified its process for the review of payment requests.” The “hold toggle” lets the agency manually review reimbursement requests before sending them out, FEMA said. “The Agency will process payment requests and approve them for payment as appropriate, simply with an added level of internal controls to ensure that payment requests are reviewed prior to payment being released.”
NTIA's outgoing BEAD director warned of the "significant risk" of program changes that would saddle rural America with subpar broadband access but benefit SpaceX CEO Elon Musk. In a 1,100-word letter sent over the weekend to colleagues and friends after his last day on Friday as head of BEAD, Evan Feinman said changes coming down the pike from Commerce include a limit on per-location BEAD spending and some kind of pause, as well as an increase in low earth orbit (LEO) satellites and a reduction in fiber use. States already face BEAD uncertainty in light of Commerce this month dropping the fiber preference and saying it was undertaking a review of other program rules (see 2503060047).
The Treasury Department included its Office of Terrorism and Financial Intelligence (TFI) in the Trump administration’s hiring freeze but is now considering giving it relief from the pause due to its national security role, the department told lawmakers.
Sen. Tim Scott, R-S.C., and Rep. August Pfluger, R-Texas, reintroduced a bill March 6 that would eliminate a requirement that the Energy Department authorize liquefied natural gas (LNG) exports, leaving the independent Federal Energy Regulatory Commission as the sole authority for the approval process.
States face less certainty and clarity about the BEAD program in light of Commerce axing its fiber focus and indicating more rules changes could be forthcoming, according to broadband policy experts. Earlier in the week, Commerce Secretary Howard Lutnick said the agency is launching a review of BEAD rules and dropping its emphasis on fiber (see 2503050067).
Although the Bureau of Industry and Security recently resumed processing certain license applications that it had paused in early February as part of a broader export control policy review, the agency is still holding applications for a range of items destined to countries outside a group of about 40 U.S. allies and other trading partners, two people with knowledge of the holds said.
Commerce Secretary Howard Lutnick said Wednesday he’s launching a “rigorous review” of NTIA's $42.5 billion BEAD program and will be “ripping out … pointless requirements” that the Biden administration included in the initiative’s original notice of funding opportunity, which Republicans repeatedly criticized last year. House Communications Subcommittee members divided sharply along party lines during a Wednesday hearing over Republicans’ push to revamp BEAD, including the newly filed Streamlining Program Efficiency and Expanding Deployment (Speed) for BEAD Act from subpanel Chairman Richard Hudson of North Carolina and other GOP lawmakers.