Springfield Standard

WASHINGTON — Today, Senator Eric Schmitt sent a letter to the National Telecommunications and Information Administration (NTIA) addressing what he describes as an unlawful pressure campaign by the Biden Administration to regulate broadband rates through the Broadband Equity Access and Deployment (BEAD) program. The letter criticizes NTIA’s strategy of mandating specific pricing in state proposals, arguing that it will lead to fewer connections and reduced competition.

"Revealingly, NTIA’s latest feedback in its so-called 'curing process' seems to provide that meeting statutory requirements is in fact not satisfactory and that the only low-cost option acceptable must be established as 'an exact price or formula' in order to receive funding. In requiring this, your agency is now conditioning BEAD funding on a set price, effectively rate regulating service providers and willfully violating the law," reads the letter.

The letter further states: "If you and Secretary Raimondo continue to pursue this strategy of double talk that NTIA is simply giving preference to states that agree to a specific price and not mandating a specific rate, please know that I along with fellow colleagues on the committee plan to use the fullest extent of our oversight authority to hold you accountable."

BACKGROUND:

All 50 states have applied through the BEAD program to expand broadband access in unserved and underserved areas. Congress explicitly prohibited NTIA from regulating broadband service rates in the authorizing language for the BEAD program. States are required to submit a low-cost service option as part of their initial proposal for funding but were given flexibility based on individual state factors.

However, recent communications between NTIA and Virginia reveal that NTIA has determined an exact price is necessary for funding approval. Currently, only eight states have been approved for BEAD funding by NTIA; all proposed fixed-price low-cost options. Missouri remains one of 42 states yet to be approved.

Senator Schmitt asserts that NTIA lacks authority for such policies and must be held accountable for actions he believes will harm consumers.

Read the letter here.