What Will Trump's Funding Pause Mean for BEAD?

UPDATE: This article has been updated as of 1/29 to reflect recent news.

In a sweeping move, and one that may affect broadband, the White House Office of Management and Budget issued a memo ordering federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal.”

Using language such as “woke” and “Marxist” to denounce certain existing policy and spending, the order aims to make federal agencies evaluate if federal grants and loans are “consistent with the President’s policies and requirements," though there appear to be exceptions.

Soon after the memo was released, a lawsuit followed and now a U.S. District Court judge has granted a stay and "paused" the pause, if you will.

What will this mean for BEAD?

After the release of a 51-page spreadsheet detailing every program that agencies were asked to review, it's clear that BEAD is indeed on the list.

There are differing views on the ramifications for BEAD. According to one analyst, it would likely not affect the three states with approved final proposals, Louisiana, Delaware, and Nevada, but Piros de Carvalho, former head of the Office of Broadband Development in Kansaformer believes those three states could be impacted.

When the pause ends next month, it will of course be more clear what will happen to BEAD funds. What we know to be true is that BEAD funds are intended to connect rural America, which includes many Republican districts, and while there are parts of BEAD that may not align with Trump's priorities, there is no reason I can see based on the memo that broadband infrastructure itself, and federal funding to subsidize it, is particularly vulnerable.

Reactions

Democrats had harsh words for the directives, with Senator Chuck Schumer calling them “lawless, destructive, dangerous, and cruel,” and “a blatant assault on our constitutional system.”

Senator Patty Murray said “The scope of this illegal action is unprecedented and could have devastating consequences across the country for real people. We could see a screeching halt to resources for child care, housing, police officers, opioid addiction treatment, rebuilding roads and bridges, and even disaster relief efforts.”

A lawsuit has already been filed by groups including the National Council of Nonprofits and the American Public Health Association, saying the memo doesn’t show where the authority to do this comes from, and requested a temporary restraining order. A U.S. District Court judge has granted an administrative stay, halting the funding pause.