What's Happening?
Broadband consultants from the Vernonburg Group have proposed the creation of a 'rainy day fund' for the Broadband Equity, Access, and Deployment (BEAD) program. This fund would address potential cost overruns and ensure connectivity for unserved locations
not covered in the initial funding round. The recommendation comes as most states have received approval for their BEAD proposals, with deployments set to begin in the new year. The consultants suggest setting aside $6 billion of the remaining BEAD funds to cover unforeseen events and support additional broadband infrastructure projects.
Why It's Important?
The proposed 'rainy day fund' is crucial for ensuring the success of the BEAD program, which aims to expand broadband access to underserved areas. By allocating funds for potential cost overruns and additional projects, the initiative could prevent gaps in connectivity and ensure that more communities benefit from high-speed internet access. This is particularly important as digital connectivity becomes increasingly essential for economic development, education, and healthcare. The fund could also provide a safety net for states facing unexpected challenges in their broadband deployment efforts.
What's Next?
As the BEAD program moves forward, the NTIA will need to consider the consultants' recommendation and decide on the allocation of remaining funds. The creation of a 'rainy day fund' could involve collaboration with state governments and other stakeholders to identify priority areas and ensure efficient use of resources. The outcome of this decision will impact the program's ability to achieve its goals and address the digital divide in the U.S. Ongoing discussions and potential policy changes could shape the future of broadband expansion efforts.
