Texas Awarded $1.3 Billion for Broadband—One-Third of What Rural Communities Anticipated

Texas is set to receive almost $1.3 billion in federal broadband funding, significantly less than the $3.3 billion initially promised. This reduction has left rural communities and advocates for digital access feeling frustrated as they face one of the most significant gaps in digital connectivity in the country.

This week saw the announcement of funding linked to the Broadband Equity, Access, and Deployment program, known as BEAD, following the state's submission of a revised plan during the Trump administration. Local leaders expressed concerns that the cutback threatens the long-anticipated initiatives aimed at providing dependable high-speed internet access to millions of Texans.

“For quite a while now, the consensus has been that it’s $3.3 billion,” stated Lonnie Hunt, executive director of the Deep East Texas Council of Governments. “The outcome is significantly lower than our initial expectations.”

Texas secured federal approval last year for its initial BEAD plan, designed to access the complete $3.3 billion designated under the bipartisan infrastructure law enacted by President Joe Biden. Following the submission of a new plan, the state secured nearly $1.3 billion, even though it had requested $6.4 billion from providers and communities.

According to the U.S. Census Bureau, over 2.8 million households, which translates to about 7 million Texans, do not have access to broadband services. In rural regions, where low population density leads to expensive, less lucrative infrastructure for service providers, the disparity is particularly pronounced. The disparity is particularly pronounced in rural regions, where low population density results in expensive, less lucrative infrastructure for service providers. Consequently, residents face slower internet speeds and elevated costs.

Kelty Garbee, executive director of Texas Rural Funders, expressed that the reduced allocation is “much less than expected and insufficient to ensure rural communities receive the same quality of service as those in metro areas.”

The state's revised broadband initiative aims to provide connectivity to approximately 123,000 locations via fiber service, with an additional 65,000 locations benefiting from low-earth-orbit satellites and 54,000 utilizing wireless radio technology. Rusty Moore, general manager of Big Bend Telephone, said the decision represents a lost opportunity. “The BEAD allocation definitely lets us down,” he stated. “It seems a remarkable chance has slipped away.”

The Texas Comptroller’s office announced that the initiative will continue to ensure that almost every location on the FCC’s broadband map can obtain high-speed service. Hunt recognized the deficit but emphasized that the funding is crucial. “This is merely one component of the overall picture, yet it holds significant importance,” he stated.

The battle for funding arises amid political discourse over the program's scope and oversight. Sen. Ted Cruz, who opposed the initial infrastructure legislation, stated that the decreased funding “spared taxpayers” and redirected the program's focus. Former Texas Comptroller Glenn Hegar had previously called on federal officials to relax specific requirements, including those favoring fiber and mandating affordable service.

Supporters assert that the true challenge begins now. “Are we expecting communities without broadband to achieve more with fewer resources?” Garbee stated. “Could this pose challenges in linking all areas of Texas?”