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Commerce Department plans changes to broadband grant program, WSJ reports

Commerce Department plans changes to broadband grant program, WSJ reports

The U.S. Commerce Department plans to make changes to former President Joe Biden’s $42.5B broadband grant program, under which it will let states award more funds to satellite-internet providers like Elon Musk’s Starlink, rather than mainly to companies that lay fiber-optic cables, The Wall Street Journal’s Patience Haggin reports. According to people familiar with the plans, Commerce Secretary Howard Lutnick has told staff he plans to make the grant program “technology-neutral.” Under the Broadband Equity, Access and Deployment Program, created by the 2021 infrastructure bill, Starlink was expected to get up to $4.1B, but with Lutnick’s overhaul, Starlink could receive $10B-$10B, the people say, adding that Lutnick also told staff he plans to do away with other BEAD program rules, including some related to climate impact and sustainability, as well as provisions that encouraged states to fund companies with a racially diverse workforce or union participation. “The Trump administration is committed to slashing government bureaucracy and harnessing cutting-edge technology to deliver real results for the American people, especially rural Americans who were left behind” under the Biden administration, White House spokesman Kush Desai said. Publicly traded companies in the broadband space include Verizon (VZ), AT&T (T), T-Mobile (TMUS), CenturyLink (CTL), and ViaSat (VSAT).

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