New Rules Change the Playing Field
June 20, 2025
In June 2025, the NTIA released a pivotal policy notice clarifying how states and territories can manage changes to broadband deployment projects funded by the Broadband Equity, Access, and Deployment (BEAD) program. For broadband providers and stakeholders, this marks a critical evolution in how subgrants can be adapted midstream to keep broadband rollouts on schedule—even when the original plans hit roadblocks.
The new guidance allows states to restructure or reassign BEAD subgrants when an awarded provider fails to perform, scales back, or exits the project altogether. That means more flexibility, faster pivots, and fewer disruptions for communities counting on high-speed connectivity.
The updated policy opens the door for states to:
- Reassign full or partial projects to qualified providers.
- Redefine project boundaries or scopes as needed.
- Reopen competitions or award to alternate bidders without restarting the process from scratch.
“We have been patiently awaiting this guidance,” says Ashley Travers, VP of Partner Strategy at KGPCo. “The latest BEAD update is more than policy — it’s a powerful promise to connect every community, unlocking potential and creating pathways for progress. When broadband reaches every corner of our nation, we build a future where opportunity knows no boundaries.”
These steps ensure that BEAD funds stay in motion, with a focus on serving unserved and underserved areas, maintaining 100/20 Mbps standards or higher, and complying with Buy America requirements.
This new direction reflects a meaningful departure from how the BEAD program was originally designed under the prior administration.
Here’s how the approach has evolved:
| Topic |
THEN |
NOW |
|---|
| Grants |
Subgrants were rigid; restructuring was rare and complex. |
States can restructure, down-scope, or reassign projects to keep things moving. |
| NTIA Oversight |
Frequent NTIA approvals required for changes. |
States notify NTIA; only material changes need formal approval. |
| Contingency Planning |
No clear guidance on subgrantee defaults. |
Detailed protocols for reassignment and re-award. |
| Policy Focus |
Procedural integrity and fixed awards. |
Delivery outcomes prioritized—getting broadband built takes precedence. |
This shift underscores NTIA’s new mantra: Don’t Let Paperwork Stall Progress.
For KGPCo partners and broadband providers, this creates both a responsibility and an opportunity:
- Be deployment ready. States now have the power to call on alternate partners to fill gaps.
- Reinforce your credibility. A solid performance record makes you a go-to candidate for reassigned scopes.
- Engage early. State broadband offices are making fast decisions—relationship-building matters more than ever.
KGPCo Is Here to Help
Whether you’re scaling to cover a re-awarded footprint or needing integration and supply chain support for an accelerated deployment, KGPCo is your strategic partner. From BABA-compliant materials to end-to-end integration and logistics, we help ensure your projects are built right, built fast, and built to last.
Ready to Move Forward? Let’s Talk.
[[email protected]] | [www.kgpco.com] | [+1 (800) 328-5142]
Let’s build the future of connectivity—together.
