Federal delays are holding up $21 billion for rural internet projects, as states wait for guidance

State officials can’t spend billions in federal funding to connect remote areas to the internet until the Trump administration provides information on how to use the money. Broadband offices are hopeful guidance is on the way – but when remains unclear.

NCUR – NPR Kansas City | September 1, 2026

State officials are waiting for guidance on how they can spend billions of federal dollars earmarked for rural broadband projects.

The federal Broadband Equity Access and Deployment, or BEAD, Program is meant to help states connect far-flung places to high speed internet. Congress allocated about $42 billion for BEAD in 2023 through the Infrastructure Investment and Jobs Act. It was the largest investment in federal broadband infrastructure in the nation's history.

States had to rework project proposals last year to lower the cost of the program under new rules from the Trump administration, which spurred worries about long-term connectivity.

In March, the National Telecommunications and Information Administration (NTIA), announced the program’s cost for infrastructure deployment lowered because of the new rules, leaving about $21 billion in remaining funding.

But so far, the agency has left states in the dark about how they can use the money.

“To date, they've missed a number of deadlines that they had previously given themselves to release that guidance,” said Drew Garner, director of policy engagement at nonprofit Benton Institute of Broadband and Society.

Garner said the money is meant for non-infrastructure needs, like digital skills training. The NTIA held listening sessions to determine the best uses of the money earlier this year. But Garner said there isn’t a clear idea of when specific instructions will be released – and when states can spend the money.

Last week, the NTIA finished approving all of the program’s final project proposals. As states work on installing cables and towers, lawmakers are watching the leftover funds. 

The Western Governors' Association, which includes Texas, Oklahoma, Kansas, Nebraska and South Dakota, sent a letter to U.S. Commerce Secretary Howard Lutnick, asking for guidance in March. 

When U.S. Sen. Deb Fischer, R- Nebraska, asked Lutnick when federal guidance will be released in April, he said the plan would be issued in the next two months. Neither Fischer nor NTIA officials responded to Harvest Public Media’s requests for an interview.

As of late August, state offices have not received the information.

“These non-deployment funds will just sort of allow us to get the best return on investment out of our broadband networks, whether BEAD or otherwise,” Garner said. “It's sort of like the gas in the tank of the BEAD program."

Read the entire NPR article here.