Texas has billions pledged to expand broadband. Spending it is taking a while.

Posted

LUBBOCK — The goal of expanding broadband availability in Texas has been a long time coming.

Depending on the day, the finish line either looks closer than ever or very far away.

Late last month, Texas won final approval to use billions of federal funds to help connect every corner of the sprawling state. The news came about 17 months after the $3.3 billion was first pledged for Texas — part of the bipartisan infrastructure deal signed by President Joe Biden.

Yet two days after federal regulators OK’d the state’s plan to spend the money, Texas’ own junior U.S. Sen. Ted Cruz suggested in a letter that money might be delayed amid a presidential transition and Republicans taking control of Congress.

The most recent back and forth is emblematic of the last several years as Texas has tried to catch up with the nation in deploying reliable high-speed internet. And supporters of the effort worry it may also foreshadow hectic days ahead.

“I don’t think anyone believes there’s going to be more billions of dollars poured into this moving forward,” said Lonnie Hunt, director of Deep East Texas Council of Governments. “We’ve got one chance to get it right, we have to make wise decisions.”

The sums to expand broadband in the Lone Star state are staggering: First, there is $461.7 million from the American Rescue Plan Act in 2021, part of Biden’s response to the COVID-19 pandemic. Then in 2023, Texas voters approved $1.5 billion of state tax dollars to help the effort.

The largest chunk, however, is the $3.3 billion in federal dollars from the Broadband Equity, Access, and Deployment, or BEAD, program that is part of the Bipartisan Infrastructure Law that Biden signed into law in 2021.

For all the efforts by local government, advocacy groups and lawmakers alike, the rollout of this money has been complicated at best. It has served as a reminder of how complicated and time-consuming building infrastructure can be for the general public — even when local, state and federal governments are working together with advocacy groups and the private sector.

The foundation of the national effort to connect everyone to broadband is establishing what parts of Texas — and the rest of the country — need internet access. Maps made by the federal government identifying the places in most need have been called inaccurate by advocates.

There have also been concerns over federal regulations that limit rural internet providers from applying for project funds. And multiple rounds of funding have created a “hurry up and wait” timeline for internet service providers and the communities they serve.

All these hurdles and more have delayed the longtime goal of connecting the entire state and opening up the possibilities of telehealth, remote work, and quality broadband service to a growing population. Hunt, who carries around a paper with black spots like a Dalmatian to visualize broadband availability in Deep East Texas, worries the dark spots around the state will still exist when all is said and done.

“If we’re not careful, we run the risk of spending all this money and improving,” Hunt said, “but not really eliminating these spots.”

Texas has only just begun to spend billions

Texas has long played catch-up in broadband development.

Most other states created broadband offices in the 2010s. Texas established its broadband office in 2021. The office is run by the state comptroller, Glenn Hegar’s office. This opened the window for Texas to receive a major injection of cash for broadband amid the COVID-19 pandemic from the American Rescue Plan Act: $461.7 million.

Local officials knew money was coming for broadband, but not when. After a long wait, the first round of funding from the program trickled out earlier this year. According to the state broadband office, 20 projects were awarded $12 million. Those projects are expected to reach 1,729 homes and businesses across Texas.

Internet service providers, local governments and other officials have one more chance to challenge the maps before the $3.3 billion is allocated. That process began Dec. 3.

Charles Meisch, director for the National Telecommunications and Information Administration’s Office of Public Affairs, said the federal map is updated every six months with feedback from those challenges. He said the data will be the most accurate and up-to-date when the challenge process begins in Texas.

“What we’ve seen nationwide is there are local and national nonprofits who are working with individuals to submit batches of challenges for locations,” Meisch said. “To make sure everyone’s voices are heard.”

Conte, the Texas broadband director, said money from federal programs has to be distributed to eligible locations that are underserved or unserved according to the federal data, not the state’s broadband map.

“No matter how great we made our state map, it didn’t matter in the eyes of the federal government,” Conte said at a July state Senate hearing. “Because we had to tie all the federal dollars back to their map.”

Rural local governments unprepared for expansion

Local governments play a critical role in advocating for major infrastructure projects such as broadband expansion. And yet, the private sector is ultimately responsible for the projects.

“Everyone’s very interested and very eager to receive these programs, but are also very under-prepared to receive them,” said Connor Sadro, regional broadband director for the Deep East Texas Council of Governments.

Building broadband on their own would be an expensive lift for most local governments to oversee, requiring projects and a workforce the counties could not afford.

Rural counties may spend an inordinate amount of time and resources preparing just to apply for broadband money. It can be a complex process for local leaders who may not have experience in managing such a large amount of funding.

The state broadband office created the Technical Assistance Program, which provides resources to communities that need help with broadband planning. Thirty-two counties are enrolled in the program.

Amid presidential transition, fresh criticism and questions

Any hope that Texas could move forward with spending its $3 billion in federal money uninterrupted after winning final federal approval was dashed — quickly.

Cruz is expected to lead the Senate Commerce, Science and Transportation Committee, which has oversight of the telecommunications agency, has promised to review the federal broadband program. Cruz voted against the law that created the funds.

“As President-elect Trump has already signaled, substantial changes are on the horizon for this program,” Cruz said.

In his letter, Cruz blamed the Biden administration for the delay by imposing “extraneous” requirements on states and said he will review the program next year. He points to mandates such as “DEI labor requirements” and climate change assessments. However, an earlier letter from Bennett Butler, director of congressional affairs for the NTIA, said many of the requirements are in line with Congress’ directions in the Infrastructure Investment and Jobs Act passed in 2021. This includes enforcing “Build America, Buy America,” which requires all materials used in infrastructure projects must be produced in the U.S.

Butler’s letter also says that states and territories must have programs that will promote equitable training, development and deployment of a qualified workforce. He says the funding announcement lists certain criteria that the federal government urges states to think through but is not a list of requirements. There is a requirement that states demonstrate they have sufficiently accounted for current and future climate-related risks. Butler said this was to “ensure taxpayers get long-lasting value for their investment and to strengthen the longevity of broadband projects.”

The state is now preparing for the challenge process, where nonprofit organizations, tribal and local governments, and service providers can dispute the accuracy of the map. The challenge process starts Dec. 3, and the state has several resources available for people including online webinars, hosting weekly office hours, and opening a helpline.

This article originally appeared in The Texas Tribune at https://www.texastribune.org/2024/12/03/texas-broadband-expansion-problems/.