A group of Senate Democrats is raising red flags over the Trump administration’s delays in releasing $42 billion earmarked for expanding high-speed internet across America’s underserved regions. The funding, created under the bipartisan Broadband Equity, Access, and Deployment (BEAD) Program, was designed to close the digital divide and bring reliable broadband to rural and low-income communities. But since taking office, the Trump administration has halted progress, leaving states in limbo and broadband projects stuck at the starting line.
Senate Majority Leader Chuck Schumer (D-N.Y.), joined by Senators Maria Cantwell (D-Wash.) and Ben Ray Luján (D-N.M.), wrote a letter on May 30 to President Donald Trump and Commerce Secretary Howard Lutnick, urging them to release the funds without further delay. The letter stresses that states have already developed detailed deployment plans and are simply waiting for federal approval to begin construction.
Biden-Era Strategy Reversed
The Biden administration spent years developing BEAD program guidelines, which emphasized building out fiber-optic networks. Fiber is widely considered the gold standard in broadband infrastructure due to its speed, reliability, and ability to meet long-term data demands. However, the Trump administration has scrapped that strategy, replacing it with a “tech-neutral” policy that allows states to fund alternative technologies—including fixed wireless and satellites.
This shift has sparked controversy. Critics argue it waters down the original intent of the program by steering money away from future-proof solutions like fiber. Instead, a significant portion of the funds may now benefit providers such as Elon Musk’s Starlink, a satellite-based internet service. Though Starlink offers wide coverage, it doesn’t deliver the same performance as fiber, particularly in terms of bandwidth and network stability.
Favoring Cost Over Performance?
Commerce Secretary Lutnick defends the new direction as a way to stretch taxpayer dollars. Under his guidance, BEAD grants must now favor the “lowest cost” options, which often rules out fiber in remote areas where installation is expensive. As a result, satellite and wireless providers—who can often deploy infrastructure more quickly and cheaply—are poised to receive the bulk of funding.
Lutnick has also denounced several of the original program’s conditions as “woke mandates,” including a requirement that internet providers offer low-cost service plans to households with limited income. That requirement, however, was part of the law Congress passed to authorize the BEAD program. Nevertheless, Republicans like Senator Ted Cruz (R-Texas) have echoed the administration’s criticisms, calling these mandates burdensome to businesses.
States Risk Missing Multiple Construction Seasons
According to the Senate Democrats’ letter, the new approach may significantly delay broadband projects across the country. Many states finalized their plans months ago based on the original rules and are now being asked to go back to the drawing board. If those revisions take too long, states could miss both this year’s and next year’s construction windows.
“For six months, states have been ready to begin broadband deployment,” the letter states. “But Commerce’s bureaucratic delays have created unnecessary obstacles. If forced to rewrite plans again, states will lose two construction seasons—and communities will be left waiting even longer.”
High-Speed Fiber Seen as Key to Economic Future
Beyond improving home internet access, fiber networks are critical for powering economic growth. The senators argue that industrial facilities like data centers, chip fabrication plants, and automated warehouses require fast, scalable connections that satellite technology simply can’t deliver. If the U.S. hopes to attract advanced manufacturing jobs to rural areas, they say, it must invest in robust broadband infrastructure now.
“High-capacity networks are the backbone of modern industry,” the senators wrote. “If we want job-creating facilities in every corner of the country, we must build networks that can support their bandwidth demands.”
Trump Continues to Back Starlink
Despite recent criticism from Elon Musk over federal spending decisions, former President Trump remains an outspoken supporter of Starlink. At a press event, he credited Musk’s network with saving lives in North Carolina following Hurricane Helene by providing emergency internet access when other services went offline. This endorsement suggests that Starlink still holds favor within the administration, even as Democrats push for more investment in terrestrial infrastructure like fiber.
Another Broadband Program Gets the Axe
In a separate and equally contentious decision, the Trump administration has announced it will shut down a $2.75 billion broadband grant initiative created under the Digital Equity Act of 2021. That program was intended to help low-income households, seniors, veterans, incarcerated people, and other marginalized groups get connected to the internet.
President Trump labeled the initiative “racist and illegal,” claiming it improperly allocated resources based on race and socioeconomic status. His administration has stopped distributing grants under the program, a move that drew immediate backlash from civil rights organizations and digital access advocates.
