Marshall Independent looks a local views on federal funding for local schools (E-Rate)

The Marshall Independent reports

Internet access has become a vital resource for public school districts and libraries. It’s something that goes beyond the classroom too, Marshall Public Schools staff said last week. Everything from communications and security systems to HVAC systems in schools also use internet connections.

“It’s not just about the internet. It’s the connectivity,” said MPS Director of Operations Tricia Stelter.

Education and technology workers said that’s a major reason why they’re concerned that the Federal Communications Commission is reviewing the federal E-Rate program, which gives schools discounts on internet service. Earlier this summer, the FCC said it will take comments on ways that the program can be updated – including whether it should be reformed or eliminated.

The article goes on to share comments from educators and others from Marshall and Lyons counties on their concerns about the future of the E-Rate program…

Sumption said about 32 school districts across southwest Minnesota, and most of the libraries in the Plum Creek regional library system, are affected by the E-Rate program. On average, they receive a total of about $2.24 million a year in E-Rate funding, he said.

Sumption said the E-Rate program has been “an equalizer” for schools and libraries around Minnesota.

“It’s just helped level the playing field, and gives everyone the chance to connect up,” he said.

Staff from both Marshall Public Schools and SWWC said E-Rate funding has a big impact on area schools.

State Broadband Offices, including in Minnesota, are waiting for guidance on BEAD funding

KOSU Public Radio reports...

State officials are waiting for guidance on how they can spend billions of federal dollars earmarked for rural broadband projects.

The federal Broadband Equity Access and Deployment, or BEAD, Program is meant to help states connect far-flung places to high speed internet. Congress allocated about $42 billion for BEAD in 2023 through the Infrastructure Investment and Jobs Act. It was the largest investment in federal broadband infrastructure in the nation’s history.

They spoke with the MN Office of Broadband Development…

Minnesota received $652 million through BEAD – which is not enough to connect the rest of the state, said Bree Maki, the Minnesota Office of Broadband Development’s executive director. She’s waiting for instructions for how she can spend about $270 million.

“We also know that weather in Minnesota is a big factor and so, just trying to maximize the construction season and when the non-deployment comes out, you know, we’ll deal with it,” Maki said. “We have always worked hard to meet deadlines and the requirements in front of us. I wish I could predict that, because then I would go hit the lottery up.”

She’s also unsure how an executive order on artificial intelligence signed by President Donald Trump last year might impact access to the leftover BEAD money. The order says that states with “onerous AI laws” are ineligible for the funds, but that definition remains unclear, Maki said.

There has been frustration with BEAD, but Maki said the mission of getting even one person connected to reliable broadband keeps her office motivated. Her state has other broadband projects in the works too, and she is confident they will keep moving forward.

“Sometimes, I think, in all the noise we forget how meaningful that is,” Maki said.

 

GAO recommends FCC and NTIA work more closely with underserved areas and focus on sustainability

The GAO (Government Accountability Office reports

Federal agencies target funding to underserved areas using FCC mapping data showing which locations do and do not have broadband access, as reported by providers. To improve data accuracy, FCC accepts challenges from the public and makes updates if needed. Some program participants and stakeholders said this challenge process was burdensome and unclear. For example, challenging a
large number of locations in an area could be difficult for smaller communities and providers with limited resources. Without targeted outreach to smaller communities and providers to address such difficulties, FCC may not be able to obtain the most accurate information about broadband availability and therefore may not be able to effectively identify and target funding to underserved areas.
As one of the largest programs focused on broadband deployment GAO reviewed, BEAD holds great potential to make broadband available to areas that have been underserved. GAO has previously reported on issues providers face in high-cost areas, including financial sustainability. In October 2025, NTIA announced a requirement that BEAD providers certify that they will not accept federal funding from other sources for broadband deployment and operations costs for locations funded by BEAD for at least 10 years. This provision is intended to ensure that BEAD projects are financially self-sustainable without additional federal funding. NTIA’s BEAD documentation for states and territories states that there may be a basis for them to request certain data from providers. However, NTIA did not detail the circumstances that could warrant such a request. By providing more details, NTIA would help states anticipate potential
problems and prevent service lapses to underserved areas when providers cannot continue providing services due to financial issues.

Getting into specifics…

Recommendations for Executive Action
Agency Affected – Federal Communications Commission
Recommendation – The Chair of FCC should conduct targeted outreach to smaller participants (such as local and tribal governments and providers), to identify and address difficulties they have experienced completing the bulk Broadband Data Collection challenge process. (Recommendation 1)

Agency Affected – National Telecommunications and Information Administration
Recommendation – The NTIA Administrator should provide information to NTIA’s partner states and territories on when and why to request additional information from BEAD subrecipients, to monitor and support their ability to remain financially sustainable in offering affordable broadband during the 10-year federal interest period. (Recommendation 2)

MN eNews Sep 2026: News on MN data center, BEAD, and MN

MN Broadband Task Force August 2026: rural libraries and workforce training
The MN Broadband Task Force heard from national speakers on rural libraries and workforce training. Also, there was a big update from the Office of Broadband Development.

MN Letters to the editor on data centers (July 7-Aug 17 2026)
Careful readers will notice that data centers have become a bigger issue in Minnesota, the Midwest and beyond. I’m trying to track the upcoming events and news in real time. I decided to compile the letters ro editors and option pieces.

State News

National News

 Vendor/Technology News

Office of Broadband Development Updates and News:

Local Broadband News

Bemidji
Bemidji considers data center moratorium (Beltrami County)

Cambridge
Cambridge City Council unanimously approved the one-year moratorium on data centers (Isanti County)

Carlton County
Carlton County passed a one-year freeze on new data center developments

Chisago
Chisago County Commissioners vote to impose a one-year moratorium on applications

Elk River
Elk River adopts one-year data center moratorium (Sherburne County)

Ely
Minnesota Center for Environmental Advocacy spokesperson talks in Ely about data centers (St Louis County)

Faribault
Environmental Commission to present data center moratorium to Faribault city council (Rice County)

Farmington
Mayor of Farmington talks about situation with local data center (Dakota County)

Fergus Falls
Fergus Falls denies data center rumors tied to RTC nondisclosure agreement (Otter Tail County)

Freeborn County
Freeborn County extends data center moratorium for another year

Glencoe
The McLeod County Chronicle Editor raises questions about plans for Revolve Labs data center in Glencoe

Harmony
Harmony city leaders hear from residents at Public meeting on data centers – next meeting Sept 16, 2026
More details on Harmony City Council meeting (Aug 5) on data center (Fillmore County)
Residents and leaders meet to discuss data centers in Harmony – next public meeting in Aug 26, 2026 (Fillmore County)

Hastings
Hastings City Council to vote on data center moratorium on Aug 17, 2026 (Dakota County)

Hermantown
The “Stop the Hermantown Data Center” group met to talk about strategies (St Louis County)
Google has scaled back its plans for a proposed data center in Hermantown (St Louis County)

Google is visiting MN communities (Pine Island & Hermantown) where they are looking at data centers Goodhue & Olmstead and St Louis Counties)
Hermantown data center discussion takes some turns that result in proposed greater transparency (St Louis County)

Inver Grove Heights
Data center lawsuit could cost Inver Grove Heights taxpayers millions (Dakota County)

Isanti
City of Isanti data center moratorium is now one year (Isanti County)

Itasca
Looks like Itasca County Commissioners are learning about data centers

La Crosse (WI)
La Crosse (WI) City Plan Commission advances 18-month moratorium on data center development

Minneapolis
North Loop Neighborhood Association outlines likely timeline for the data center proposal (Hennepin County)
Minneapolis Mayor Jacob Frey speaks up about data centers
North Loop Mpls data center meetings raise questions in preparation for North Loop association on Aug 26, 2026 (Hennepin County)
Is it AI or is it art? And how do we differentiate? The Walker is looking into it
MPR speaks to Minnesota Design Center and their work leading discussion about data centers in Minneapolis (Hennepin County)
Outage at 511 Building in Mpls suspected cause of telecommunications disruptions last week
FOX9 tracks view on proposed data center locating to the former Star Tribune

Minnetrista
Minnetrista City Council approves a one-year moratorium on data centers (Hennepin County)

Monticello
Monticello gets more details on proposed data center (Wright County)

New Ulm
Congressional candidate Jake Johnson (CD1) talks about data centers at New Ulm Town Hall meeting (Brown County)

Nobles County
Lismore Cooperative Telephone updates Nobles County Board on FTTP network and line extension progress

North Mankato
North Mankato City Council prepares for data center moratorium vote (Nicollet and Blue Earth Counties)
North Mankato data center moratorium tabled for two weeks (Nicollet and Blue Earth Counties)

Northfield
Northfield moves to ban hyperscale data centers (Rice and Dakota Counties)

Pine County
Pine County extends data center moratorium to 12 months
Pine County adopts a 6-month moratorium on data centers will hold public meeting Aug 18, 2026

Ruthton
The Foundation for Rural Service tours policymakers to learn about rural broadband with a stop in Ruthton MN

St Paul
DIGIDAZE in St Paul aims to boost digital confidence for attendees

Southern MN
Fidium now serves 30,000 homes and businesses in southern Minnesota (Blue Earth, Nicollet and Le Sueur Counties)

Thief River Falls
EVENT Sep 15, 2026: Thief River Falls City Council holds public meeting on data centers

Wright County
Wright County Board to discuss “Satellite Ground Station” proposed for Rockford Township – apparently approved by the FCC

Upcoming Events, Opportunities and Resources

 

Doug Adams reports on final BEAD dollars and technology

Broadband.IO reports

Now that the last final proposal is approved, we’re finally able to tally just how much of the BEAD dollars will be deployed for direct connections and how much is non-deployment… or ‘savings’ as the NTIA continues to call them.

  • Total BSLs designated connectivity through BEAD: 3,739,925
  • BEAD funding approved by the NTIA using BOB guidance: $18B
  • Non-deployment dollars: $22.5B
  • Percentage of originally designated IIJA/BEAD dollars allocated: 44.25%

85% of subscribers would lose service entirely without the Lifeline benefit

The National Lifeline Association reports

The National Lifeline Association (NaLA) is proud to release the results of our 2026 Annual Subscriber Survey. With over 83,000 responses across 20 detailed questions, this year’s data confirms a critical reality: for low-income Americans, the Lifeline program is not merely a discount—it is essential access infrastructure.

Why Lifeline Matters

As regulators and lawmakers evaluate the future of the Universal Service Fund, our survey data provides a clear picture of how Lifeline empowers households by bridging the digital divide.

Key Findings: How Subscribers Use Lifeline

Lifeline provides the connectivity necessary to improve life outcomes and access vital services:

  • Healthcare Access: 66% of subscribers use their service for telehealth appointments (phone/video) and to order medication.
  • Staying Connected: 81% rely on the service to maintain connections with family and friends.
  • Employment: 37% utilize the service for work-related activities, including working from home, applying for jobs, and managing shifts.
  • Education: 30% leverage the connection for educational purposes, such as online classes, training, and schoolwork for children.

The Reality of Affordability

Affordability remains the primary barrier to sustainable internet access.

  • 96% of subscribers report that they cannot afford any monthly service fee.
  • 85% of subscribers would lose service entirely without the Lifeline benefit, as they cannot pay the full, undiscounted price.
  • For those without home internet, the monthly bill is the most frequently cited barrier—outranking both availability and awareness.

A Mobility-First Requirement

With 91% of subscribers preferring mobile wireless service with hotspot capability over fixed broadband, it is clear that mobility is a functional requirement, not a preference, for this population.

The Path Forward

The current benefit level supports incremental use but falls short of providing the sustained connectivity needed for full, consistent access to telehealth, remote work, and coursework. Sixty-nine percent (69%) of subscribers report limiting their data use every month to avoid exhausting their allotment.

NTIA takes steps to reopen the Digital Equity Competitive Grants

I’m borrowing from the Benton Institute for Broadband and Society’s recap of the NTIA’s notice of action on reopening the Digital Equity Competitive Grants...

The National Telecommunications and Information Administration (NTIA) published a public notice on August 25 seeking public comment on the application forms it will use for a revived Digital Equity Competitive Grant Program, the first public confirmation that work on the program’s relaunch is underway. The notice opens a 60-day comment period under the Paperwork Reduction Act, with comments due October 26, 2026, and is a revision of an existing clearance (OMB Control Number 0660–0055) rather than a new one. NTIA estimates 800 applicants will respond, each spending roughly 18 hours on an application. Eligible applicants track the statute: state political subdivisions and instrumentalities, Indian Tribes, Alaska Native entities and Native Hawaiian organizations, nonprofits that are not schools, community anchor institutions, local educational agencies, workforce development entities, and partnerships among them. The step follows a July 15 federal court ruling that the Digital Equity Act’s racial-minority “covered population” provision is unconstitutional but severable, after which the Department of Commerce told the court it would reinstate the program without that provision and target a December 2026 opening. Notably, the notice’s description of the program makes no mention of the statute’s covered populations, the severed provision, or the litigation. The comment deadline also leaves little room in the calendar: a second 30-day notice and OMB review would ordinarily follow, putting final clearance at early December at the earliest.

Lismore Cooperative Telephone updates Nobles County Board on FTTP network and line extension progress

The Globe reports

The Nobles County Board of Commissioners received an update on Lismore Cooperative Telephone’s Fiber to Home broadband project at their Tuesday meeting. Lismore Cooperative – the firm that will own and operate the broadband services involved – General Manager Travis Halbur and Finley Engineering associates presented.

Whitney Adler, the project manager with Finley, said there are two projects going at the same time: the Fiber-to-the-Premises (FTTP) project and a line extension project .

The FTTP project – which kicked off in August 2025 – will cover roughly 650 total route miles, with about 123 miles going specifically to people’s homes. Around 1,443 potential customers will be impacted.

As of right now, the project is in phase one.

“Most of the design, permitting, contracts is all complete; construction is going on,” Adler said. “We’re about 71% through phase one construction, 28% through the overall, all four phases. Phase two will be starting real soon in the near future.”

According to Adler, the project has exhausted a quarter of its $13 million grant so far. About $9.85 million remains in the budget.

“We have three mainline (plow) crews going, one drop crew, a few splicing crews, and the goal ultimately is to get about three to four miles plowed per day just to get the customers of Nobles County basically in line with fiber,” Adler said.

The line extension project covers 16.5 route miles and 4.5 total drop miles, serving an estimated 56 potential customers. With two mainline plow crews, the project’s expected completion is no later than Dec. 31, 2026.

MN Office of Broadband Development suggests using BEAD surplus funds to address rising costs 

Broadband Breakfast reports…

This week at Mountain Connect, one topic keeps coming up in hallways, panel discussions, and private conversations: Broadband providers are increasingly discovering that building to the last unserved locations is significantly more difficult and expensive than many anticipated.

Bree Maki, executive director of Minnesota’s broadband office, said her office would support waivers to increase grant support if they made sense, suggesting NTIA use BEAD surplus funds to address rising costs and meet the goal of connecting the unserved.

Broadband Breakfast looks at the Farm Bill, economic impact and BEAD in Minnesota

The Daily Yonder posts an article from Broadband Breakfast’s Drew Clark about broadband in rural areas. It starts with a look at the impact of the Farm Bill on Reconnect funding…

The current fight [related to the Farm Bill] between the House and Senate over SNAP funding levels has been the loudest obstacle to passage, and proved to be the case on Thursday. But tucked inside the Farm Bill’s rural development title is a provision that governs the future of the U.S. Department of Agriculture’s ReConnect broadband program.
eConnect has provided more than $4.4 billion in loans and grants for rural broadband deployment since 2018, reaching some of America’s most remote and expensive-to-serve communities. The House Farm Bill, passed in April by a narrow 224-200 margin, would make ReConnect permanent.

But the House version sets minimum project speeds at just 50 Megabits per second (Mbps) for downloads and 25 Mbps for uploads. And it restricts eligibility to areas lacking 25 Mbps for downloads and 3 Mbps for uploads for service. Critics say that – as with previous broadband programs such as the Connect America Fund deploying broadband at 10 Mbps for downloads and 1 Mbps for uploads, such low thresholds would doom Rural America to a lower tier of service.

The proposed Senate version takes a more ambitious approach. In addition to making ReConnect permanent, it would use higher required speeds and broader eligibility. At a previous hearing on the topic before the Senate Agriculture Committee, Jesse Shekleton, director of Broadband Operations at Jo-Carroll Energy pushed for the higher speed standard. “Demands for bandwidth on farms will continue to grow,” he said

The Farm Bill also matters for broadband beyond ReConnect. Both the House and Senate versions would codify technical assistance for rural broadband planning and include provisions preventing ReConnect from overlapping with the Broadband Equity, Access and Deployment (BEAD) grant program of the U.S. Commerce Department.

Looks at economic impact…

Broadband and rural economic development was the subject of Wednesday’s Broadband Breakfast Live Online discussion. In it, panelists said that broadband has become the price of admission for a rural community rather than a growth strategy on its own.

Well-connected rural counties post 18% higher per capita income and roughly 210% higher business growth than underserved peers, according to a Center for Rural Innovation study cited by Bartlett Cleland, executive director of the Innovation Economy Alliance.

And there’s a look at BEAD in Minnesota…

But being approved [for BEAD] is not the same as being built. Minnesota’s projects will reach 74,739 locations with $378.9 million in federal money and nearly $190 million in matching funds. The state must place its remaining initial projects under contract by Oct. 8. Getting the first one signed took more than 18 rounds of revisions with federal reviewers.

And often, the fights are over poles. Electric cooperatives, which own much of the existing pole infrastructure in rural America and are well-positioned to build broadband alongside it, are finding BEAD’s pole attachment rules onerous. Two co-ops said they turned down tentative BEAD awards entirely because compliance costs made the projects unworkable. 

NTIA, however, has defended this pole-attachment policy as necessary for deployment.

MN OBD’s Bree Maki talks about impact of inflation on BEAD at the Mountain Connect conference

Broadband Breakfast reports...

As Broadband Equity, Access, and Deployment program projects begin to get underway, rising project costs could be a potential pain point.

“We are seeing this across the board with providers,” said Bree Maki, executive director of Minnesota’s broadband office. She spoke at the Mountain Connect conference here in Denver.

Applicants bid for grants under the $42.45 billion BEAD program nearly one year ago, and under new Trump administration rules that prioritized cost-efficient builds. In the meantime, inflation has continued apace and AI companies’ demand for American-made fiber has grown.

The Farm Bill doesn’t advance from Senate Agriculture Committee, which means no advance for broadband provisions

Broadband Breakfast reports

The fate of millions of dollars in rural broadband funding remains unresolved as Congress heads into its August recess.

The Senate Agriculture Committee failed Thursday to advance the Agricultural Act of 2026, the chamber’s version of a long-delayed farm bill. The stalled bill includes language that would codify and consolidate the U.S. Department of Agriculture’s ReConnect broadband program, which has distributed $5.5 billion in rural broadband funding since 2018, but has never operated on a permanent statutory basis.

The Senate draft, released in June by the office of Committee Chairman John Boozman, R-Ark., and revised again in late July, would authorize up to $100 million a year for ReConnect through 2031, targeting underserved areas where 90 percent of households lack access to broadband service offering speeds of 25 Megabits per second (Mbps) download and 3 Mbps upload.

There’s hope for some iteration of the Digital Equity Competitive Grant Program

Benton Institute for Broadband and Society reports on the federal funding that supported the adoption side of the BEAD access goal…

Cities, counties, nonprofits, libraries, community colleges, and workforce organizations waiting to learn whether the Digital Equity Competitive Grant Program is coming back now have a glimmer of hope, albeit a soft one. In a joint status report filed in a federal court on August 3, 2026, the Department of Commerce said it “presently targets a December 2026 opening date for the Competitive Grant Program application.” The National Telecommunications and Information Administration (NTIA), the Commerce agency that runs the program, is “currently preparing a new Notice of Funding Opportunity (NOFO),” the document that announces a federal grant competition, sets the rules, and opens the application window.

Three things in that sentence matter to anyone who applied in 2024 or plans to apply next time. The date is a target, not a court-ordered deadline. The NOFO will be new, not a revival of the 2024 process. And nothing in the filing addresses what happens to the more than 700 applications NTIA already has in hand.

The article goes on to give a brief history of the funds and suggest the next chapter…

In the days and weeks ahead, stakeholders might want to keep the following in mind.

August 17, 2026. The next joint status report, which should reveal whether NDIA accepts a stay, and whether the parties will brief mootness.

The Federal Register. The Department of Commerce attributes part of its timeline to Paperwork Reduction Act notice periods. A notice from NTIA seeking comment on the application package would be public confirmation that the NOFO is moving. The law also allows for emergency processing and reliance on existing clearances, so the absence of a notice would not by itself mean the December target has slipped, but its appearance would be the first independent evidence that it hasn’t.

The four-year clock. Grants under this program must be expended within four years of award, with a fifth year available only for measurement and evaluation. An application window opening in December 2026 means awards land, at the earliest, well into 20272—more than five years after the Digital Equity Act became law.

Some electric cooperatives lose interest in BEAD due to pole attachment rule changes

Telecompetitor reports

Pole attachment requirements added late in the Broadband Equity, Access, and Deployment (BEAD) program rollout have become a sticking point for electric cooperatives, already pushing some out of the program. In an interview with Telecompetitor, NRECA CEO Jim Matheson said the BEAD provision marks a sharp break from decades of federal policy and is one reason several cooperatives have decided the program is no longer worth pursuing.

Under the National Telecommunications and Information Administration’s (NTIA’s) revised terms, an electric cooperative that accepts BEAD funding for any part of its territory becomes subject to Federal Communications Commission (FCC) pole attachment rates across its entire service area, not only the funded portion.

Electric cooperatives have long been exempt from FCC pole attachment regulation under Section 224 of the Communications Act, which caps the rates pole owners may charge companies that string broadband lines and sets deadlines for processing attachment requests. Cooperatives set their rates locally, and Congress preserved the exemption in recognition of the sparsely populated, hard-to-serve areas co-ops typically cover.

MN Office of Broadband Development announces first signed BEAD deal

I mentioned this yesterday in the OBD Updates, but I’m glad to highlight it again today, because it’s pretty big news. Broadband Breakfast reports

Minnesota has notched a milestone: the state’s first signed BEAD deal.

The state’s Office of Broadband Development announced an executed contract and approved environmental review for East Central Energy’s fiber project expected to connect 3,750 locations between Minneapolis and Duluth.