Updated · Democrats, Energy and Commerce Committee | (.gov) · Jun 30
Pallone Accuses NTIA of Impounding Billions, Raising Internet Costs in BEAD Overhaul
Updated
Updated · Democrats, Energy and Commerce Committee | (.gov) · Jun 30
Pallone Accuses NTIA of Impounding Billions, Raising Internet Costs in BEAD Overhaul
1 articles · Updated · Democrats, Energy and Commerce Committee | (.gov) · Jun 30
Summary
Frank Pallone Jr. told a House oversight hearing that NTIA has derailed the 2021 BEAD broadband program since January 2025, impounding billions in grant funds and driving up internet costs.
He said the agency forced states to scrap broadband plans and steer awards toward Elon Musk’s SpaceX as the cheapest option, cutting thousands of miles of planned fiber and leaving hundreds of thousands of locations with satellite as the only provider.
Pallone argued low-Earth-orbit service such as Starlink may look cheaper only if long-term lifespan and operating costs are ignored, and said NTIA has not shown those providers can meet statutory performance standards at scale.
He also accused NTIA of failing to enforce BEAD’s low-cost service requirement, saying providers are abandoning awards because of shifting rules and mismanagement rather than state decisions.
Pallone urged NTIA to quickly release each state’s nondeployment funds with maximum flexibility, warning delays are undermining what Congress intended as a generational broadband investment.