(The Center Square) – The federal government has pushed the reset button on a Nevada internet access program worth over $416 million, which could affect rural economies.
Part of a wider national broadband internet program, the Broadband, Equity, Access and Deployment was set to deliver higher internet speeds more affordably across Nevada’s least connected counties. But as the national government has revoked its approval of Nevada’s funds, fears by supporters of the original program persist that the new deal could make for a worse deal.
“Today we proudly announce a new direction for the BEAD program that will deliver high-speed internet access efficiently on a technology-neutral basis, and at the right price,” said U.S. Secretary of Commerce Howard Lutnick in a National Telecommunications and Information Administration press release. “The American people will get the benefit of the bargain, with connectivity delivered around the country at a fraction of the cost of the original program.”
The program began in 2021 under former President Joe Biden, but has widely been criticized for its slow and bureaucratic implementation. Heading into the 2024 presidential election, none of the $42 billion marked for the project had been spent. And over a dozen states had not had their spending plans approved.
The program’s slow upload was one point the Trump administration said it would solve with the reshuffle, but it is not clear how.
The updated program looks to get rid of requirements to keep internet costs low for poor areas, which could keep the Nevada communities most in need from affording access.
Drew Garner, director of policy at the Benton Institute for Broadband and Society, told CNET that changes in the program worried states that everything could slow down.
“They are extremely concerned, because as far as we can tell, that 90-day clock starts today,” said Garner. “All of them are mid-stride, and they just had the rug yanked out from under them. It’s hard to see how all that work doesn’t just collapse right now.”
The 90-day clock is the new timeline states have to re-submit applications, even though many, including Nevada, had already been approved.
“I’m beyond outraged that the Trump Administration has moved the goal post yet again and rescinded Nevada’s approval to get the BEAD funding I secured to connect the hardest-to-reach communities in our state to high-speed internet,” said Sen. Jacky Rosen, D-Nevada, in a press release. Rosen was part of the legislative group that helped get the program originally approved.
“This decision will put Nevada’s broadband funding in jeopardy, and it’s a slap in the face to rural communities that need access to high-speed internet,” said Rosen.
Nevada has a relatively low 6% rural state population. The Rural Broadband Association found that rural counties with over 80% broadband adoption rates saw 213% business growth, but areas with low connectivity on average lost three or more businesses per year.
The association’s study also found 44% higher GDP growth, 18% per capita income growth and a 10% higher self-employment growth, all associated with the ability to better connect with a global market and general e-commerce.
“Existing residents are the primary beneficiaries of these economic gains (rather than new arrivals),” said the study’s author, economist Amanda Weinstein in a statement. “Areas with the lowest levels of broadband utilization have lower income growth rates and are more likely to experience business closures and population decline.”
In May 2024, Nevada Gov. Joe Lombardo announced the $250 million Middle Mile Network. It was announced as an addition to the national BEAD program funds.
The Republican governor’s office did not respond to a request from The Center Square to comment on whether the state plans to make up lost investments from BEAD.
