Skip to content

Ted Cruz wants to overhaul a $42 billion broadband program without low costs

    The law also says that the NTIA “may not regulate rates for broadband services,” and Republicans argue that the NTIA violates this restriction. A July 23 letter sent by more than 30 broadband industry trade groups also alleged that the government is illegally regulating broadband prices. ISPs pointed to NTIA guidelines that “strongly encouraged” states to set a flat rate of $30 per month for the low-cost service option.

    “The statute requires that there be a low-cost service option,” Davidson reportedly said at a congressional hearing in May. “We do not believe the states regulate rates here. We believe this is a prerequisite to receiving a federal subsidy. No one is requiring a service provider to follow these rates, people do not have to participate in the program .”

    Now that Republicans gain full control of Congress, they can amend the law to require changes. The Trump administration could also make changes on its own after new leadership is installed at the NTIA.

    Cruz's letter referred to plans to eliminate “tariff regulation” and other demands of the Biden administration. That includes what Cruz called “extreme technology bias,” referring to the NTIA's preference for fiber-optic broadband projects over other types of networks such as cable, wireless or satellite.

    Cruz wrote:

    Congress will review the BEAD program early next year, with specific attention to NTIA's extreme technology bias in defining “priority broadband projects” and “reliable broadband services”; the imposition of legally prohibited tariff regulation; union workforce and DEI employment requirements; climate change assessments; excessive costs per location; and other central planning mandates. In turn, states will be able to expand connectivity on terms that meet the real needs of their communities, without irrelevant requirements that take up resources, create confusion and delay implementation.

    Cruz claims “discrimination based on race”

    Although the FCC does not manage the BEAD program, Carr addressed it today in a post on that yield nothing. about connecting Americans quickly,” Carr wrote.