August 5, 2025—ACA Connects: America’s Communications Association released the following statement regarding FAQ guidance the National Telecommunications and Information Administration (NTIA) sent today making clear states cannot issue rate regulations to be eligible for the Broadband Equity, Access, and Deployment (BEAD) program funding.
“ACA Connects thanks NTIA for holding the line against harmful rate regulations and following the law to ensure investment and competition is protected in the BEAD program,” said ACA Connects President and CEO Grant Spellmeyer. “We appreciate the administration giving our Members more confidence to invest and help bridge the digital divide in areas of the country where it is needed the most.”
Last week, Spellmeyer wrote a letter to Assistant Secretary Arielle Roth urging her to “expressly condition access to BEAD funds on an Eligible Entity agreeing not to apply or enforce rate regulation in the context of BEAD deployment projects and to make clear that no waivers of this policy are forthcoming.”
Today, NTIA published this Frequently Asked Questions document, which stated (emphasis added):
“The IIJA prohibits NTIA or the Assistant Secretary from engaging in rate regulation. Because the Assistant Secretary must approve the LCSO in the Final Proposal, the rate contained may not be the result of rate regulation. The RPN addressed this fundamental flaw in the BEAD NOFO. The RPN eliminated BEAD NOFO requirements dictating price and other terms for the required low-cost service option. Per the RPN, states may not apply state laws to reimpose LCSO requirements removed by the RPN. More specifically, the RPN “prohibits Eligible Entities from explicitly or implicitly setting the LCSO rate a subgrantee must offer” (BEAD Restructuring Policy Notice, p.7). Violation would result in rejection of the Final Proposal.”
ACA Connects—America’s Communications Association is a trade organization representing approximately 500 smaller and medium-sized, independent companies that provide broadband, video, and phone services covering 29.5 million households. ACA Connects Members operate in every state, providing advanced communications to connect homes, companies, main street, schools, hospitals and more. America’s economic prosperity in smaller communities and rural areas depends on the growth and success of ACA Connects Members, who believe a connected nation is a prosperous nation.