Trump Federal Communication Commission Chairman Brendan Carr has announced vague potential changes to the FCC’s E-Rate program that could harm program funding, effectiveness, and the overarching goal of bringing affordable Internet access to long-neglected schools and rural communities trapped on the wrong side of the digital divide.

The reforms come as Carr also looks to make changes to the FCC’s broadband mapping efforts, something consumer groups say could harm the government’s ability to measure which communities need improved, affordable access, or suffer from a pronounced lack of broadband competition.

In an announcement to the FCC website, Carr stated the 30-year-old bipartisan E-Rate program, which costs $3 billion annually, was in dire need of reforms. The program is primarily funded by a small surcharge affixed to phone lines. With the steady erosion of copper-based phone lines, debates have arisen about how to best sustain the program.

But instead of focusing on issues like subsidy fraud by large telecoms, Carr’s announcement oddly focuses heavily on concerns about student “screen time” and what content students are allowed to view. It’s a problematic foray for an FCC boss recently under fire for unconstitutional censorship efforts targeting comedians and journalists.

In the marathon to bring universal high-speed Internet service to the most rural state in the nation, Vermont is heading into the last-mile stretch of the race with the finish line in sight.

In February, the Vermont Community Broadband Board (VCBB) announced that the National Telecommunications and Information Administration (NTIA) overseeing the federal Broadband Equity, Access, and Deployment (BEAD) program, had approved Vermont’s Final Proposal, unlocking $93 million of the state's nearly $229 million federal allocation.

After years of painstaking planning, public input, and navigating bureaucratic hurdles, it marked a pivotal moment – with the state's selected grant recipients cleared to begin deploying mostly fiber to the communities that have long been waiting for high-speed connectivity after decades of neglect from the Big Cable and Telecom providers.

“This is a major milestone for many of our rural towns and a once-in-a-generation opportunity to strengthen and revitalize communities,” Gov. Phil Scott said in a statement, crediting NTIA, Vermont's congressional delegation, and the VCBB for shepherding the state's plan.

Image

U.S. Sen. Bernie Sanders, never one to mince words, spoke to both the significance and the frustration of the moment. “Affordable, high-speed [I]nternet is a vitally important resource in every corner of the country. It is foundational to modern life,” he said. 

The Trump administration continues to give muddled guidance in terms of the whopping $21 billion in “non-deployment” funds states should have at their disposal from the “savings” created by unwelcome changes to the federal BEAD (Broadband Equity, Access and Deployment) program.

As we noted last month, dramatic, unpopular, and unlawful changes to BEAD by the National Telecommunication and Information Administration (NTIA) have resulted in infighting and delays, after the Trump administration tried to steer billions in taxpayer funds to slower and more congested satellite broadband networks owned by the President’s biggest donors.

The broadly-criticized shift was sold as a new “benefit of the bargain” program necessary to “cut costs.” The change required that all 56 BEAD eligible states and territories complete a “benefit of the bargain” round of subgrantee selection and completely retool their broadband deployment plans – often at significant cost to states.

The Bois Forte Band of Chippewa (also referred to as Ojibwe) has officially begun construction on a foundational fiber optic broadband expansion project in northern Minnesota that is poised to bridge the digital divide for thousands of Tribal residents.

The ambitious undertaking is supported by a significant $20 million grant awarded under the 2021 Tribal Broadband Connectivity Program, marking a major step forward in modernizing infrastructure for the sovereign nation.

The massive project aims to overhaul the existing connectivity landscape across the Bois Forte Reservation.

Image

Once completed, the new network will deliver a high-speed, future-proof up to 10 gigabit per second (Gbps) fiber-to-the-home network to over 2,097 largely-underserved Native American households, businesses, and community anchor institutions.

Many Tribal nations were skipped over by past fiber deployments either due to outright hostility to Tribal interests, or a disinterest in the work required to align for-profit deployments with the needs and wishes of what is often multiple Tribal territories.

For Bois Forte, this new fiber network is expected to have a transformative impact across several key sectors, fundamentally improving community access to vital services:

Close to a 1,000 broadband-minded registrants attended yesterday’s listening session on how to spend an estimated $21 billion in “non-deployment” funds states should have at their disposal from the federal BEAD (Broadband Equity, Access and Deployment) program.

Hosted by the National Telecommunication and Information Administration (NTIA), the Commerce Department agency administering the program, the online listening session featured about 50 selected speakers. Most of those who spoke advocated using the money to tackle the array of non-infrastructure barriers to expand broadband (affordability, device distribution, and digital skills programs) – made all the more urgent in light of the Trump administration’s sudden “termination” of the Digital Equity Act last year.

Though it runs counter to the bipartisan infrastructure law that established the program, a handful of speakers actually suggested the funds simply be returned to the U.S. Treasury, presumably to “save taxpayer dollars.”

One speaker even tried to make the case that money Congress explicitly intended to address the nation’s massive digital divide should instead be given to Air Traffic Controllers.

Elon Musk’s Starlink is making new demands of states with an eye on eroding accountability and oversight, reheating concerns about whether spending big money on the Low Earth Orbit (LEO) network is the best possible use of taxpayer resources.

Last year, the Trump administration made revisions to NTIA rules surrounding the $42.5 billion Broadband, Equity, Access, And Deployment (BEAD) program, demanding that states de-prioritize fiber and dole out significantly more money to LEO satellite providers – a move broadly seen as a personal gift to one of the President’s biggest financial donors.

This subsidy reward, slated to be at least $733 million to start, is money that in some cases is being redirected away from higher-capacity, more affordable local options like open access community-owned fiber networks.

The NTIA changes introduced significant new delays in a program already rife with them. The Trump administration’s threat to withhold grant awards from states that focus on affordability – and the high consumer costs, environmental impact, and capacity constraints of the LEO network – risks undermining BEAD’s promise of faster, more affordable access.

Standoff Orbits 'LEO participation' 

Last week, Broadband.io and the Benton Institute for Broadband & Society obtained a copy of a letter Starlink parent company SpaceX sent to individual states, demanding freedom from state oversight and monitoring should they bungle installs or fail to deliver acceptable bandwidth.

Despite a memo issued by the NTIA last summer that sought to discourage states from passing affordable broadband legislation similar to New York State’s Affordable Broadband Act, two dozen state lawmakers in Maryland have signed on to the Broadband Opportunity and Fairness Act, state legislation that seeks to address the single biggest barrier to Internet access anywhere: affordability.

HB-382, if passed, would require Internet Service Providers (ISPs) operating in Maryland to offer low-cost Internet service plans to eligible low-income households.

Introduced by Delegate Kris Fair (D-3A, Frederick Co.), the bill now has 25 co-sponsors and is slated for a Feb. 12 legislative hearing before the House Economic Matters Committee. Companion legislation has yet to be filed in the Senate, though Delegate Fair’s office says they are in discussions with state Senators about advancing a bill through that chamber as well.

Stepping Up and 'Doing Something'