Minnesota Releases Draft Proposed Federal Broadband Funding Package

From the Department of Education and Employment Development

The Minnesota Department of Employment and Economic Development (DEED) today released the state’s draft final proposal for using federal Broadband Equity, Access, and Deployment (BEAD) Program funds to expand broadband availability.

The proposal would extend broadband access to 75,000 Minnesota homes and businesses, covering every location eligible for BEAD funding in the state. DEED is accepting public comment on the proposal for seven days, after which it will finalize and submit the plan to the National Telecommunications and Information Administration (NTIA) for approval before the end of the year. Construction could begin in late spring or early summer 2026.

“Fast broadband will be a welcome resource for the thousands of Minnesota residents and businesses who will soon have access,” said DEED Commissioner Matt Varilek. “This funding will help us connect thousands of Minnesota families and businesses to the internet in new, important ways.”

DEED’s proposal will use an estimated $381 million in federal BEAD grants and utilize a mixture of broadband technology, with more than half of covered locations utilizing fiber optic. Eligible locations are classified by the BEAD program as unserved (with broadband speeds slower than 25 megabits [Mbps] per second download and 3 Mbps upload) or underserved (with speeds slower than 100 Mbps download and 20 Mbps upload).

“We are excited that 75,000 Minnesotans will soon have faster broadband because of BEAD,” said Office of Broadband Development Executive Director Bree Maki. “We are grateful to our internet service provider partners for their hard work and commitment to the Minnesotans we all serve. We will continue working hard, together, to make smart, effective investments so every Minnesotan can access broadband.”

The Office of Broadband Development will host regional, in-person informational sessions on the draft final proposal over the next week. These sessions will provide an overview of the proposal, steps for public comment and next steps for BEAD in Minnesota.

NTIA Opens a Second Round of BEAD Funding

Benton Institute for Broadband and Society reports…

On September 3, 2026, the National Telecommunications and Information Administration (NTIA) released the Broadband Equity, Access, and Deployment (BEAD) Program Supplemental Deployment Policy Notice to allow states, territories, and the District of Columbia (known collectively as Eligible Entities) to access additional BEAD funding to address locations that may remain unserved due to defaults in other federal and/or state programs, misreporting by providers, and other changes to the Federal Communication Commission’s (FCC) broadband DATA maps since the completion of their federally approved deployment plans (called “Final Proposals”). Adhering to the requirements of this new guidance will likely add nine months or more to the BEAD process.

The policy notice matters to a wide range of stakeholders:

  • State broadband offices now have a defined, time-limited process and a hard funding ceiling for reaching locations that fell through the cracks since they finalized their Final Proposals.
  • Internet service providers gain a new, abbreviated opportunity to challenge which locations are added to this second round, but the evidentiary bar is explicit and higher than a provider’s mere claim of service.
  • Digital equity and rural advocates might note what this notice does not do: it does not touch the broader question of how states can use the roughly $21 billion in savings NTIA says the program generated for anything other than reaching unserved locations. NTIA says other (“non-deployment”) uses “will be addressed in subsequent guidance.”
  • Policymakers and researchers get a window into how NTIA is managing the gap between the FCC’s evolving broadband maps and the funding decisions NTIA already locked in with states.

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)

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%

Will the workforce be ready for building data centers and rural networks when BEAD projects hit the streets?

RCR Wireless News reports

The US has two infrastructure priorities converging on one scarce resource: people who know how to build networks. AI data centers are sucking skilled workers into a construction boom, just as the long-delayed BEAD initiative finally starts moving into deployment. And actually, it is not just about the fiber technicians; the same labor pool includes electricians, HVAC specialists, surveyors, trenchers, engineers, and other trades needed to build broadband networks. The numbers are already uncomfortable. The industry was estimated in 2024 to be short around 58,000 workers to meet BEAD’s goals. AT&T plans to add 3,000 technicians this year. Meta has its own fiber-training programme. Meanwhile, the US telco workforce has fallen from 1.4 million in 2001 to fewer than 598,000 in 2025.

There is a stark economic imbalance here, of course. A hyperscaler or major carrier building AI infrastructure can afford recruitment, training, and wages that smaller community-based broadband operators cannot. Every worker pulled toward a lucrative data-center project is potentially one less available for a rural fiber build. And this is before the AI construction boom really peaks. Economist Anirban Basu expects labor pressure to worsen in 2027 as AI infrastructure spending expands. So the irony is clear: America’s AI infrastructure boom could make it harder, slower, and more expensive to deliver the connectivity needed by Americans still waiting for broadband.

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.

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.

Office of Broadband Development Update July 29 2026: East Central Energy (ECE)

From the Office of Broadband Development…

Broadband Matters: Office of Broadband Development Updates

  • Broadband, Equity, Access and Deployment (BEAD) updates
  • Upcoming Tribal broadband summit + federal funding opportunities
  • Digital opportunity, community update
  • Line Extension Connection Program, registration open for residents and businesses

Broadband, Equity, Access and Deployment (BEAD) updates

Minnesota is excited to announce its very first fiber project for BEAD has an executed contract and approved National Environmental Protection Act (NEPA) decision memo. This East Central Energy (ECE) Fiber project in East Central Minnesota is expected to serve 3,750 locations:

Bringing broadband to unserved and underserved communities takes true partnership. We extend our sincere thanks to the Minnesota Office of Broadband Development and DEED for their collaborative approach, responsiveness, and shared commitment to connecting rural Minnesota. Their assistance in helping us finalize and execute our BEAD application was invaluable.” Ty Houglum, Vice President/Chief Information Officer, ECE 

Minnesota BEAD Map with ECE Central Minnesota project.

OBD is continuing to work through required project scope changes and preparing contracts for execution. These scope changes often include removing locations newly identified as already served or re‑awarding locations when providers decline an award. Updated information and resources can be found on the OBD BEAD webpage.

Because the National Telecommunications and Information Administration (NTIA) must approve these project scope changes, the review process can take several weeks. OBD will continue coordinating closely with partners to keep projects moving and to meet the federal contracting deadline of October 8, 2026.

Providers and community members can contact OBD (DEED.broadband@state.mn.us) with questions.

Upcoming Tribal broadband summit + federal funding opportunities

Early bird registration is open for the 2026 NTTA Tribal Broadband Regional Southern Plains Summit, September 21-23 at the Hard Rock Hotel & Casino in Tulsa, Oklahoma. The summit will look to advance broadband connectivity and digital sovereignty throughout Indian Country and cover topics like data sovereignty, AI & emerging technology, broadband equity & infrastructure, and cultural continuity. More information and registration is available online.

Additionally, NTIA Announced Two New Funding Opportunities to Expand Broadband Connectivity on Tribal Lands. Applications are due September 17, 2026. More information is available on NTIA’s BroadbandUSA webpage including:

Digital opportunity, community update

OBD is actively monitoring developments given the recent federal court ruling impacting the Digital Equity Competitive Grant Program. At this time, our office has not received updated guidance from NTIA regarding whether Digital Equity funds or related grants may be reinstated.

We understand how important this is to Minnesota. As new information becomes available, OBD will relay updates through this newsletter and on the OBD Digital Opportunity webpage.

As we navigate these ongoing developments together, please feel free to reach out to our office with questions at DEED.broadband@state.mn.us or by phone at 651-259-7610.

Line Extension Connection Program, registration open for residents and businesses

Registration remains open for residents and businesses for future rounds of the Line Extension Connection Program.

For assistance completing the application or to request a paper form to complete, please call 651-259-7610 or email DEED.broadband@state.mn.us.

More information and registration are available on the Line Extension Connection Program webpage.

State Broadband Chiefs, including Minnesota’s Bree Maki, talk about guidance on $21 Billion of remaining BEAD funds

Broadband Breakfast reports

Four state broadband directors [including Minnesota’s Bree Maki] said Wednesday they remain in the dark about how they can spend billions in leftover federal broadband dollars, uniting behind a single plea to Washington: Give states the flexibility to fund what their residents actually need.

Speaking during a Broadband Breakfast Live Online panel, the officials described a monthslong wait for guidance from the National Telecommunications and Information Administration on the remaining Non-Deployment funds, money remaining after states finish connecting unserved locations under the $42.5 billion Broadband Equity, Access and Deployment program.

OBD Broadband Update July 15: BEAD, Tribal Broadband funding opportunities & line extension

From the MN Office of Broadband Development…

Broadband Matters: Office of Broadband Development Updates

  • ICYMI, webinar from the U.S. Army Corps of Engineers Regulatory Program
  • Broadband, Equity, Access and Deployment (BEAD) updates
  • Reminder, NTIA funding opportunities on Tribal Lands
  • Line Extension Connection Program, registration open for residents and businesses

ICYMI, webinar from the U.S. Army Corps of Engineers Regulatory Program

The session from the U.S. Army Corps of Engineers Regulatory Program for the Broadband Development Training Series: Navigating PLUS (Permitting, Land Use, and State Systems) is posted on the OBD Webinars and Recorded Events webpage.

Click below to watch the overview from the U.S. Army Corps of Engineers (USACE) Regulatory Program as it relates to broadband infrastructure deployment under BEAD.

Broadband, Equity, Access and Deployment (BEAD) updates

Minnesota continues to make steady progress on the federal BEAD program. The Office of Broadband Development is currently working through required project updates and preparing contracts for execution. Typically, this means removing locations newly identified as already served, or re-awarding locations when providers decline an award.

Because NTIA must approve these project scope changes, the review process can take several weeks. OBD will continue coordinating closely with partners to keep projects moving and to meet the federal contracting deadline of October 8, 2026.

Providers and community members can contact OBD (DEED.broadband@state.mn.us) with questions.

Reminder, NTIA funding opportunities on Tribal Lands

On June 17, 2026, NTIA Announced Two New Funding Opportunities to Expand Broadband Connectivity on Tribal Lands. Applications are due September 17, 2026. More information is available on NTIA’s BroadbandUSA webpage including:

Line Extension Connection Program, registration open for residents and businesses

Registration remains open for residents and businesses for future rounds of the Line Extension Connection Program. For assistance completing the application or to request a paper form to complete, please call 651-259-7610 or email DEED.broadband@state.mn.us.

OBD expects to announce a sixth round of the program with standard timelines using state funds later in 2026.

More information and registration are available on the Line Extension Connection Program webpage.

EVENT July 8: Webinar for U.S. Army Corps of Engineers Regulatory Program

From the Office of Broadband Development…

Wednesday July 8 at 11 a.m. CT., a new session has been added for the Broadband Development Training Series: Navigating PLUS (Permitting, Land Use, and State Systems).

The session agenda will be posted on the OBD Webinars and Recorded Events webpage under the “Broadband Development Training series” toggle. No registration required and the Teams link to join the session will be included on the agenda. 

The session will provide an overview of the U.S. Army Corps of Engineers (USACE) Regulatory Program as it relates to broadband infrastructure deployment under the Broadband Equity, Access and Deployment (BEAD) program in Minnesota.