Jul. 6—Two years after the federal government announced $675 million for high-speed internet in New Mexico, instead of celebrating grant awards, the companies vying to build broadband infrastructure will have to have their grant applications reviewed anew, thanks to new rules from the Trump administration.
For months, Sen. Ben Ray Luján, D-N.M., and some of his fellow senators and congresspeople have demanded the Trump administration release the $42.5 billion in Broadband Equity, Access, and Deployment (BEAD) funding meant to bring high-speed internet to communities without it nationwide. In June, the National Telecommunications and Information Administration (NTIA) issued a new rule requiring states to rescind any preliminary BEAD grant awards and rescore grant applications based on new criteria. The new requirements allow broadband providers to set their own price for a “low-cost option” and no longer prioritize fiber technology.
“As a locally owned New Mexico provider, we know firsthand how critical reliable broadband is for rural communities,” President of NMSurft Albert Catanach said in a statement. “The BEAD updates give providers like us the flexibility to deploy the best mix of technologies — including fixed wireless and fiber — to deliver fast, reliable internet where it’s needed most.”
The new guidelines caused a six-month delay in the grant process, since the Trump administration paused BEAD funds in January, according to Jeff Lopez, director of New Mexico’s Office of Broadband Access and Expansion. The broadband office originally expected the new policy guidance in March.
When the rule came down, the Office of Broadband Access and Expansion was in the final steps of reviewing the first round of grant applications and had pulled together five or six awards it wanted to recommend to the office’s interim director for approval, according to BEAD coordinator Andrew Wilder. After state approval, applications will be sent to the federal government for approval. Originally, final proposals were supposed to be submitted in late July.
States have until September to implement the new guidance and submit final proposals to the NTIA. The agency is supposed to review and approve final proposals within 90 days of receiving them. Previously accepted grant applicants don’t have to submit updated grant applications, but the broadband office recommends doing so, Wilder said.
No more fiber favoritism
The old grant criteria favored fiber internet for priority projects.
“Of currently available technologies, fiber-optic networks are faster and more reliable and can scale speeds much more easily,” reads a recent letter opposing the BEAD restructuring from 40 Democratic House and Senate members, including Luján, Sen. Martin Heinrich and Rep. Teresa Leger Fernández of New Mexico. “We made the decision to invest larger sums now in broadband infrastructure that would be resilient and capable of meeting Americans’ growing digital demands for decades.”
The new criteria includes “technology neutrality,” with no preference for fiber, fixed wireless or low orbit satellite service, as long as it meets performance benchmarks, because “the full force of the competitive marketplace must be utilized,” the policy notice says.
New Mexico’s topography means that in some areas, fiber is very difficult and expensive to implement, Lopez said.
“I think our previous proposal really provided a lot of clarity on which locations might need an alternate technology in order to provide connectivity quickly and at a low, sometimes substantially lower, cost than fiber would have allowed. Our team is being very good and pragmatic on complying with the new policy guidance from June 6,” Lopez said.
“I would say it will be beneficial for technologies other than fiber and connecting some households with a cheaper alternative, but again, it might impact the long-term costs, where some alternative technologies might require more in terms of operations and maintenance beyond just this capital investment that we are administering right now.”
The new criteria could benefit companies using satellites to deliver internet — like Starlink, owned by former Trump ally Elon Musk.
As of March, a low Earth orbit satellite project was one of the 66 project applications the New Mexico Broadband office received, but the majority of the project applications, 53, were full-fiber.
Looser low cost definition
Previously, the program also scored grants based on service affordability, labor, diversity, equity and inclusion, and open access. Those factors will no longer be weighted. Instead, the lowest cost of project per location will be the primary criteria. Climate planning, sustainability and environmental reporting were also removed from the proposal requirements.
The legislation that created BEAD required broadband providers who received the substantive taxpayer dollars to offer customers at least one low-cost option. Under the Biden administration interpretation of the bill, states were allowed to set that low-cost option. New Mexico set its low cost price plan at $50 per month. The new rule lets providers set their own rate for a low-cost option, as long as one is included in their proposal.
The new rule also required states to update their maps of unserved and underserved communities. When New Mexico updated its map, the number of unserved and underserved locations shrank. Combined, the locations went from 75,000 to an estimated 40,000. Unserved locations went from 31,000 to 24,000. Some of the locations were not actually homes or businesses, while other locations will get broadband coverage from different programs.
Originally, 35 applicants pre-qualified for BEAD in New Mexico, and 18 applied for projects. With the new rule, those original 35 entities are still eligible to apply and nine new applicants have applied to become pre-qualified, Wilder said.
Ground can’t be broken on the projects until after grants are awarded, grant agreements are signed and permits are acquired, which at the earliest could be in 2026.
“Though the broadband office has already opened up its benefit of the bargain round, this new guidance is just another way the Trump administration is delaying New Mexico’s ability to connect New Mexicans to high-speed internet,” Luján said in a statement.
Cathy Cook covers the federal government for the Albuquerque Journal. Reach her via email at ccook@abqjournal.com.