Today, U.S. Senators Kirsten Gillibrand and Charles Schumer, along with Congresswoman Grace Meng, raised concerns about the National Telecommunications and Information Administration’s (NTIA) potential reclamation of Broadband Equity, Access, and Deployment (BEAD) non-deployment funds. If the NTIA unlawfully withholds these funds, New York stands to lose at least $273.52 million in funding to support broadband adoption and digital inclusion efforts.
The BEAD program is a $42.45 billion federal grant program that aims to connect every American to high-speed internet by funding partnerships to build broadband infrastructure. BEAD non-deployment funds refer to the funding left over after a state meets BEAD’s infrastructure deployment requirements. In May 2022, the NTIA outlined acceptable uses for these funds, clarifying that states may be able to use BEAD non-deployment funds to support digital inclusion projects, including expanding access to affordable broadband internet services, internet-enabled devices, digital literacy programming, telehealth services, and cybersecurity education initiatives.
However, the NTIA’s June 2025 BEAD restructuring policy notice rescinds states’ flexibility to use these funds as Congress intended. As of today, the NTIA has yet to clarify whether states will be able to retain these funds at all, creating uncertainty that could result in the loss of federal support for increasing broadband adoption across New York State.
The members emphasized that “BEAD non-deployment funds would benefit many more households than the one percent of households eligible for deployment funds and would help close the digital access divide for K-12 students, veterans, aging adults, rural communities, and families across the state. To fully ensure that all New Yorkers can participate in an increasingly digital era, they not only need access to broadband, but also access to affordable broadband, internet-enabled devices, and digital literacy programming to maximize internet connectivity.”
“BEAD non-deployment funds are meant to complement BEAD’s universal connectivity goals, and federal statute explicitly authorizes these funds for a broad range of non-deployment activities, including accessibility, affordability, and digital readiness. If the NTIA restricts or reclaims these funds, broadband infrastructure investments risk creating a two-tiered system where broadband availability exists but remains out of reach for those who need it most,” the lawmakers stressed.
The members continued to underscore the importance of broadband access in an increasingly digital era, stating that “Every New Yorker deserves affordable, high-speed internet, regardless of where they live. Broadband adoption projects play a crucial role in ensuring full participation in the digital economy. This is necessary because long-term American economic competitiveness relies on a digitally connected and skilled workforce.”
The members closed the letter by highlighting that “Workforce development, employment, digital safety education, support for remote learning, telehealth, and the other non-deployment activities approved under the NTIA’s original 2022 guidance are foundational to delivering high-speed reliable internet to New York’s most underserved communities.”
The members urged Commerce Secretary Howard Lutnick and NTIA Administrator Arielle Roth to “preserve the flexibility states retained prior to the issuance of the NTIA’s June 2025 restructuring notice and allow states to use BEAD non-deployment funds for digital inclusion efforts.”
Along with Senators Gillibrand and Schumer and Congresswoman Meng, the letter was cosigned by Representatives Hakeem Jeffries (D-NY-08), Dan Goldman (D-NY-10), John Mannion (D-NY-22), Timothy Kennedy (D-NY-26), Josh Riley (D-NY-19), Pat Ryan (D-NY-18), George Latimer (D-NY-16), Nydia Velázquez (D-NY-07), Tom Suozzi (D-NY-03), Gregory Meeks (D-NY-5), Adriano Espaillat (D-NY-13), Yvette Clarke (D-NY-09), Laura Gillen (D-NY-04), and Paul Tonko (D-NY-20).
The full text of the letter can be read HERE.
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