BEAD Supplemental Deployment Policy Notice
On September 3, NTIA released the BEAD Supplemental Deployment Policy Notice, establishing a second “Benefit of the Bargain” round. This is a “clean‑up” process to address remaining gaps in broadband coverage caused by provider defaults, past mapping inaccuracies, and changes in the FCC Broadband DATA Maps.
This update introduces a Supplemental BEAD Eligible Location List, built from Fabric Version 8, and requires states to run a challenge process and submit awards through a Supplemental Deployment Plan. It is our understanding that this list is only locations NTIA provides us and does not allow for states to add locations we have data to show to be eligible.
NTIA notes that this action is limited to this round; additional uses of BEAD funding (labeled as Non-deployment) will be addressed in future guidance.
Funding Impact
NTIA will set an upper funding limit for each state based on: Average BEAD cost per location (Final Proposal) × number of newly identified unserved locations. Our average for our approved final approval was $5,200 per location. At this time, we are at around 40% of the BEAD locations will be getting less that state statutory broadband (LEO’s and Fixed Wireless).
States may request a waiver for additional funds under “extraordinary circumstances,” and may need to submit budget modifications depending on the outcome of the challenge and award process. We have already put in waiver requests for BABA compliant products and cost increases due to supply chain issues, however, NTIA has not provided any responses at this time.
Next Required Steps for States
The Supplemental Notice sets out a strict sequence:
- NTIA issues the Supplemental Eligible Location List (Fabric v8).
- 30 days for state review and validation.
- Abbreviated 30‑day challenge window, posted within 7 days of review completion.
- 30 days to adjudicate challenges.
- 90‑day second Benefit of the Bargain round for procurement.
- Submission of a Supplemental Deployment Plan and any waiver requests, followed by NTIA’s 90‑day review window.
Current state of BEAD in Minnesota
- 1 contract signed (electric cooperative) and have an estimated total to date of around 90 contracts with 20-24 providers for NOW ONLY 63,000 locations. (A solid additional 8% was removed per NTIA requirements because they are considered served via wireless or cellular or even DSL.)
- Several more in NTIA curing or pre‑contract negotiations.
- Minnesota has active NEPA submissions, with some projects already under review.
- Construction cannot begin until NEPA Decision Documents + OBD Notice to Proceed.
- Deadline for contracts + tribal consent: October 8, 2026 (90 day extension is currently requested)
- Cost increases and supply chain; minimal benefit from NTIA’s supplemental BEAD location round, frustrations with the program, locations eligible are not within “NTIA’s cost approval model .
Minnesota Implications and Assessment
The ongoing uncertainty and frequent changes in NTIA guidelines have led numerous preliminary awardees to withdraw from the program, citing mounting worries about rising costs, supply chain issues, and stringent program requirements. These cumulative challenges have significantly impeded Minnesota’s progress in broadband expansion efforts.
Meanwhile, the OBD team continues to work tirelessly, providing support to active providers and maintaining communication with constituents still awaiting broadband deployment. Despite our efforts, the federal nature of the program—administered through the state with limited decision-making authority—poses significant obstacles.
