NTIA Issues Major BEAD Program Restructuring Policy Notice

NTIA Issues Major BEAD Program Restructuring Policy Notice

The National Telecommunications and Information Administration issued a comprehensive Policy Notice on June 6, 2025 that significantly restructures the $42.45 billion BEAD program by eliminating numerous requirements from the original Notice of Funding Opportunity and adopting a “technology-neutral” approach for broadband deployment. This restructuring removes various requirements and requires all states to conduct additional subgrantee selection rounds within 90 days.

Elimination of NOFO Requirements

NTIA has eliminated extensive requirements, including labor and workforce development obligations, climate resilience requirements, consumer protection provisions, and local coordination and stakeholder engagement mandates. The Policy Notice also removes the middle-class affordability plan requirement and modifies the low-cost service option framework to prohibit states from setting specific rates, allowing providers to propose their own, qualifying low-cost offerings.

NTIA has restructured the program’s technological approach by eliminating the fiber-only definition of “Priority Broadband Projects” and instead allowing any technology meeting established performance requirements to qualify. Under the revised framework, fiber-optic, cable modem/hybrid fiber-coaxial, low Earth orbit satellite, and terrestrial fixed wireless technologies may all be used in Priority Broadband Project applications.

Mandatory Subgrantee Selection Changes

All states must conduct at least one additional subgrantee selection round termed the “Benefit of the Bargain Round” that permits all applicants to compete under the technology-neutral framework. States must rescind all preliminary and provisional subaward selections and notify applicants that additional rounds will be conducted.

The revised scoring criteria prioritize minimal BEAD program outlay as the primary consideration, focusing on lowest overall cost to the program per location served. Secondary criteria include speed to deployment, technical capabilities, and consideration for previously selected subgrantees, but only when competing proposals are within 15% of the lowest-cost option.

Implementation Requirements and Timeline

States have 90 days from June 6, 2025, to comply with the Policy Notice requirements and submit Final Proposals reflecting Benefit of the Bargain Round results. NTIA will complete its review of each Final Proposal within 90 days of submission. NTIA has rescinded all previously approved Final Proposals, requiring all states to resubmit under the new framework.

NTIA has also suspended approval of all non-deployment activities and will not reimburse costs associated with eliminated requirements incurred after June 6, 2025. States must submit correction letters within 30 days requesting Initial Proposal modifications to incorporate the Policy Notice terms.

Location List Modifications Required

States must update their BEAD-eligible location lists to account for locations no longer requiring funding and to include locations that became eligible due to defaults on federal enforceable commitments. NTIA will provide lists of defaulted locations within 14 days of the Policy Notice publication. States must also account for existing unlicensed fixed wireless networks that meet technical specifications to prevent overbuilding.

Immediate Action Steps

JSI with continue to review the Policy Notice and its changes to the BEAD program and provide additional information in the coming days. Providers should evaluate whether the restructured program creates new participation opportunities. States must reopen prequalification processes, though existing qualified applicants need not resubmit documentation. Providers may submit new applications eliminating costs for removed requirements or opt to use existing applications that States will rescore under new criteria.

JSI can assist clients in navigating this BEAD restructuring, evaluating eligibility under revised requirements, and preparing applications for “Benefit of the Bargain Rounds.” For assistance with BEAD restructuring implications or application strategies, please contact Amanda Molina or Barbara Greger.