Only ISPs get to determine what constitutes 'affordable' broadband, says team Trump
(2025/08/06)
- Reference: 1754507240
- News link: https://www.theregister.co.uk/2025/08/06/us_states_affordable_broadband/
- Source link:
US states that want to make use of rural broadband deployment funds had better not require ISPs to offer what they consider affordable service. According to the Trump Administration, "affordable" is for the ISP alone to define.
The announcement wasn't a prominent one, or even a formal one, for that matter. A [1]FAQ updated on Tuesday by the National Telecommunications and Information Administration (NTIA) indicates that Broadband Equity, Access, and Deployment (BEAD) funds are contingent on states not imposing fee schedules on ISPs.
Laws capping the price of broadband for low-income customers are limited, so only one state is currently affected. New York has a law [2]on the books that requires large ISPs to offer cheap internet service.
[3]
According to the NTIA's latest BEAD FAQ, the Infrastructure Investment and Jobs Act (IIJA), which called for creating the BEAD program, explicitly prohibits the government from setting broadband rates that it considers affordable for low-income access.
[4]
[5]
That's true - the IIJA's section on BEAD's affordable internet program does [6]specifically say that NTIA cannot regulate broadband service rates. Whether the BEAD notice of funding [7]opportunity (NOFO) mentions such price restrictions, as alleged in the FAQ update, is an open question.
According to a June BEAD program restructuring [8]announcement , the Trump administration criticized the BEAD NOFO for setting rates only by displaying examples that included the various disclosure requirements, like all-inclusive pricing and basic service characteristics.
[9]
For example, on page 67 of the NOFO, it suggests that a proposed service option cost $30 a month or less and have download/upload speeds of 100 Mbps and 20 Mbps or "the fastest speeds the infrastructure is capable of."
"By offering a 'model' low-cost service option with specific dollar amounts … the Biden Administration engaged in improper rate regulation in the NOFO," the June BEAD restructuring document said.
[10]FCC Commissioner demands review of Starlink rural broadband subsidies
[11]Biden to bolster boondocks broadband with a billion bonus bucks (barely)
[12]Musk lashes out at Biden administration over rural broadband
[13]Trump's budget bill opens wide swath of spectrum for sale
For that reason, the administration said in June that it was scrapping the entire affordability portion of the NOFO and returning to the statutory requirements of the program. Per Tuesday's FAQ update, those rates can only be set by the ISPs.
"The [BEAD restructure] eliminated BEAD NOFO requirements dictating price and other terms for the required low-cost service option," the FAQ says, noting that the restructure proposal specifically "prohibits Eligible Entities from explicitly or implicitly setting the LCSO rate a subgrantee must offer."
That's what you get for trying to provide examples.
[14]
As something popular from the Biden era, the BEAD program has been a frequent target of the Trump administration. Trump's budget reconciliation bill, for example, included a [15]provision that banned states from accessing BEAD funds if they were to enforce any state-level AI regulations. The Senate [16]killed that measure , despite committee attempts to make it more palatable by reducing the state-level moratorium.
The NTIA didn't respond to questions for this story. ®
Get our [17]Tech Resources
[1] https://broadbandusa.ntia.gov/technical-assistance/BEAD_FAQs
[2] https://access.nyc.gov/programs/affordable-broadband-act/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.congress.gov/bill/117th-congress/house-bill/3684/text#:~:text=(D)%20No%20regulation,for%20broadband%20service.
[7] https://broadbandusa.ntia.gov/sites/default/files/2022-05/BEAD%20NOFO.pdf
[8] https://www.ntia.gov/other-publication/2025/bead-restructuring-policy-notice
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/09/13/fcc_starlink_subsidies_review/
[11] https://www.theregister.com/2023/08/22/biden_rural_broadband/
[12] https://www.theregister.com/2024/01/23/musk_starlink_fcc/
[13] https://www.theregister.com/2025/07/08/trump_budget_bill_spectrum_auctions/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/07/03/trump_budget_bill_tech_impact/
[16] https://www.theregister.com/2025/07/01/senate_passes_trumps_big_beastly/
[17] https://whitepapers.theregister.com/
The announcement wasn't a prominent one, or even a formal one, for that matter. A [1]FAQ updated on Tuesday by the National Telecommunications and Information Administration (NTIA) indicates that Broadband Equity, Access, and Deployment (BEAD) funds are contingent on states not imposing fee schedules on ISPs.
Laws capping the price of broadband for low-income customers are limited, so only one state is currently affected. New York has a law [2]on the books that requires large ISPs to offer cheap internet service.
[3]
According to the NTIA's latest BEAD FAQ, the Infrastructure Investment and Jobs Act (IIJA), which called for creating the BEAD program, explicitly prohibits the government from setting broadband rates that it considers affordable for low-income access.
[4]
[5]
That's true - the IIJA's section on BEAD's affordable internet program does [6]specifically say that NTIA cannot regulate broadband service rates. Whether the BEAD notice of funding [7]opportunity (NOFO) mentions such price restrictions, as alleged in the FAQ update, is an open question.
According to a June BEAD program restructuring [8]announcement , the Trump administration criticized the BEAD NOFO for setting rates only by displaying examples that included the various disclosure requirements, like all-inclusive pricing and basic service characteristics.
[9]
For example, on page 67 of the NOFO, it suggests that a proposed service option cost $30 a month or less and have download/upload speeds of 100 Mbps and 20 Mbps or "the fastest speeds the infrastructure is capable of."
"By offering a 'model' low-cost service option with specific dollar amounts … the Biden Administration engaged in improper rate regulation in the NOFO," the June BEAD restructuring document said.
[10]FCC Commissioner demands review of Starlink rural broadband subsidies
[11]Biden to bolster boondocks broadband with a billion bonus bucks (barely)
[12]Musk lashes out at Biden administration over rural broadband
[13]Trump's budget bill opens wide swath of spectrum for sale
For that reason, the administration said in June that it was scrapping the entire affordability portion of the NOFO and returning to the statutory requirements of the program. Per Tuesday's FAQ update, those rates can only be set by the ISPs.
"The [BEAD restructure] eliminated BEAD NOFO requirements dictating price and other terms for the required low-cost service option," the FAQ says, noting that the restructure proposal specifically "prohibits Eligible Entities from explicitly or implicitly setting the LCSO rate a subgrantee must offer."
That's what you get for trying to provide examples.
[14]
As something popular from the Biden era, the BEAD program has been a frequent target of the Trump administration. Trump's budget reconciliation bill, for example, included a [15]provision that banned states from accessing BEAD funds if they were to enforce any state-level AI regulations. The Senate [16]killed that measure , despite committee attempts to make it more palatable by reducing the state-level moratorium.
The NTIA didn't respond to questions for this story. ®
Get our [17]Tech Resources
[1] https://broadbandusa.ntia.gov/technical-assistance/BEAD_FAQs
[2] https://access.nyc.gov/programs/affordable-broadband-act/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.congress.gov/bill/117th-congress/house-bill/3684/text#:~:text=(D)%20No%20regulation,for%20broadband%20service.
[7] https://broadbandusa.ntia.gov/sites/default/files/2022-05/BEAD%20NOFO.pdf
[8] https://www.ntia.gov/other-publication/2025/bead-restructuring-policy-notice
[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[10] https://www.theregister.com/2022/09/13/fcc_starlink_subsidies_review/
[11] https://www.theregister.com/2023/08/22/biden_rural_broadband/
[12] https://www.theregister.com/2024/01/23/musk_starlink_fcc/
[13] https://www.theregister.com/2025/07/08/trump_budget_bill_spectrum_auctions/
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aJPQgDAeBIxAZGLNCQQhngAAAEk&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2025/07/03/trump_budget_bill_tech_impact/
[16] https://www.theregister.com/2025/07/01/senate_passes_trumps_big_beastly/
[17] https://whitepapers.theregister.com/