A new legislative draft by a Senate Republican could significantly reduce federal investments in broadband expansion. The proposal aims to cut approximately half of the existing $42 billion allocated for broadband deployment programs.

This move aligns with recent changes introduced during the Trump administration, which revamped the Broadband Equity, Access, and Deployment (BEAD) program. These reforms prompted states to revise their grant plans, resulting in a shift of funds from fiber-optic projects to satellite-based solutions and a decrease in overall spending.

As a consequence, an estimated $21 billion in remaining funds may go unused. Currently, law allows some of these unspent resources to support initiatives like Wi-Fi access and providing internet-enabled devices. However, the draft bill proposed by Senator Joni Ernst (R-Iowa) seeks to redirect these surplus funds directly to the U.S. Treasury, aiming to reduce the national deficit.

Experts warn that such a move could slow broadband expansion efforts and limit access in underserved areas. According to industry analysts, sustained federal investment is crucial for closing the digital divide and ensuring equitable internet access across the country.

David Nield

Dave is a freelance tech journalist with over 20 years covering gadgets, apps, and the web. From Stockport, England, he covers news, features, and reviews for TechRadar, focusing on phones, tablets, and wearables. He ensures top weekend breaking news and has bylines at Gizmodo, T3, PopSci, and others. He edited PC Explorer and The Hardware Handbook for years. Read me on x.com or linkedin.