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▶ 0:07:34the subcommittee will come to order the chair recognized himself for an opening statement closing the digital divide is a top priority for this committee too many Americans particularly those in Rural America like so many places in my home state of North Carolina lack access to Reliable high-speed Broadband with so much of everyday life requiring an internet connection this is a vital need since 2020 Congress has provided billions of dollars to
▶ 0:08:04connect unserved Americans the most significant effort is the infrastructure Investments and jobs act or ija this massive Bill included the 42.5 billion Broadband Equity access and deployment or bead program at the national telecommunications and Information Administration nitia it's been over 3 years since the ija became law and we're still waiting for the first home to be connected using these funds
▶ 0:08:34I think we should understand how this happened first FCC maps that Biden FCC chairwoman Rosen worel said would be ready in months instead took much longer to develop then the Biden Harris Administration saddled the bead program with regulations unrelated to broadband to appease leftwing interest groups these included technology preferences burdensome labor rules and climate change requirements to name a few worse the Biden Administration flagrantly
▶ 0:09:05ignored the law by forcing states to regulate Broadband rates before nitia would approve their proposals even though the law explicitly prohibits rate regulation these actions did nothing to deploy Broadband but instead created confusion while making the program less attractive to Providers and deployment more expensive Energy and Commerce Committee Republicans are committed to fixing these um mistakes so that every American has access to broadband
▶ 0:09:35as quickly as possible that's why today I along with many Republicans on this committee introduced the speed to bead act this bill would eliminate the burdensome Biden regulations so that we can get money out the door shovels into the ground and Broadband into as many homes as possible specifically this bill would eliminate the unnecessary expensive regulations Nia imposed further clarify the rate regulation by nitia or any other entity is prohibited
▶ 0:10:06ensure that the program is run on a technology neutral basis and more efficiently use tax dollars by ensuring that Awards to Providers are cost effective and that funds are only used for deployment these changes to the bead program can be implemented quickly provide certainty to the states and not hinder the progress that states have already made and I'm excited to hear that that Secretary of Commerce Howard lutnick just a few minutes ago announced that he's launching a review of The Bead program to cut red tape
▶ 0:10:37eliminate waste and make sure Americans get connected faster I'm thrilled to have him join me in this effort reforming bead is one important step to ensuring every American has access to broadband but it's not enough we also need to reform the permitting process for Broadband projects if we do not reform this process all the money will get tied up in burdensome permitting reviews resulting in more unnecessary delays for the past three congresses Energy and Commerce Republicans have introduced legislation to
▶ 0:11:07streamline the Broadband permitting process we have proposed codifying existing shot clocks to provide predictability in state and local permit reviews exempting previously Disturbed lands from duplicative and burdensome environmental and historic preservation reviews and instilling transparency and urgency in permitting on federal lands some of these bills had bipartisan support and passed the house last Congress I wish my democr colleagues had been willing to work with us on the most meaningful
▶ 0:11:37reforms which were included in representative buddy Carter's American Broadband deployment act I hope this new Congress and the urgency of the moment will inspire bipartisan cooperation on this effort and I certainly extend my hand to my colleagues across the aisle we must do everything we can to remove these unnecessary barriers to deployment in conclusion uner Americans have waited too long for the promise of connectivity but now is the moment to close the digital divide once and for all today's hearing is an opportunity to
▶ 0:12:07hear from stakeholders about how to address these challenges uh and how to stop it from happening I look forward to hearing from our Witnesses I now yield five minutes to my colleague ranking member Doris Matsui for her opening statement you are recognized thank you Mr chairman I want to thank the witnesses for being here today also we all recognize reliable high-speed internet is no longer a luxury it is a necessity it Powers our economy it supports education it strengthens public
▶ 0:12:37health and it connects us to our loved ones that's why under the Biden Administration Congress passed a bipartisan infastructure law investing $65 billion to close the digital divide this include over $42 billion for the Broadband Equity access and deployment program or as we call it bead to bring high-speed internet to tens of millions of Americans who still lack access just as critically Congress also directed nearly $3
▶ 0:13:08billion doll in digital Equity grants to ensure all communities have the skills training and Technology to reap the full benefits of online access during the last Administration ntia worked diligently with state and local Partners to make the most of this once in a generation investment to connect all all Americans thanks to this diligence States like Louisiana Nevada and Delaware stand ready to put shovels in the ground this year
▶ 0:13:38to connect their communities but only if this Administration moves quickly to allow them to go ahead many other States including California are hard at work launching a fair and competitive award process and implementing digital Equity plans so that our federal Broadband dollars go to where they're needed the most yet instead of building on this program president Trump is actively sabotaging it delaying and injecting uncertainty into Federal Broadband programs
▶ 0:14:09freezing Broadband funding ignores the law and harms the tens of millions of Americans who are counting on these programs to get connected they can't afford to wait and neither can we that's certainly true with the Sacramento region just 20 minutes outside the city rural communities still suffer major gaps in Broadband coverage due to years of underinvestment head further into the California delta and the need is just as urgent our farming communities rely
▶ 0:14:40on broadband for economic growth education and basic quality of life bead is a critical Lifeline for these communities yet Republicans are delaying bead so they can water down or outright eliminate protections for affordability good paying jobs and climate resilient networks these changes will drive up costs for consumers while driving down the quality of service I'm also deeply concerned by attempts to divert funding from fiber
▶ 0:15:10to Elon mus starlink satellite service unlike satellite fiber is a gold standard and future proof technology that will grow with consumers data needs over time granted some remote areas may be better served using non-fiber Alternatives but existing be guidance already recognizes this we need smart Broadband Investments That Will Last not short-term fixes that can cost taxpayers more in the long run
▶ 0:15:40Republicans claim they're just being technology neutral but can we trust this when the Trump Administration has given Elon Musk nearly unfettered authority to further his business interests by taking over government contracts and dismantling agencies regulating his companies and last week not a single Republican voted with Democrats to ensure this committee conducts oversight into conflicts of interest like musk so forgive me if I find it
▶ 0:16:10hard to believe that Republicans will ensure that the Trump Administration applies Broadband rules fairly let's be honest it seems to me that today's hearing is about Republicans fishing for excuses to toss three years of work into the trash undermining our efforts to connect American I urge my Republican colleagues to stop the delays stop the sabotage work with us to fully Implement all federal Broadband
▶ 0:16:40programs including bead and digital Equity this includes holding the Trump Administration accountable for delays conflicts of interest and violations of the law otherwise the American people will be paying for Republicans Broadband blunders for generations to come and with that I yield the balance of my time thank you I now recognize the chairman of the full committee the gentlem from Kentucky for five minutes for his opening statement thank you Mr chair I appreciate that and we are going to do
▶ 0:17:10oversight of this and we're going to move forward in this area I think what was just said at three years of effort and not one inch of fiber has been built our people are clamoring in our area for local Broadband to have access to the internet and broadband and and you know Congress appropriates and authorizes spending of of this amount of money and three years into it for some reason because not following the law trying to put more on the law than law requires um
▶ 0:17:41for unfortunately people are just starting to speak up about that now in said over the last three years but I want to start with introducing uh Greg hell from Logan County Kentucky he's a great friend of mine I know him from a long time and he really is passionate he's a a believer in getting Broadband to rule America rural Kentucky particularly rural Logan County and and is if there's somebody better in the country that knows this issue and is also a practitioner of this issue trying to get it done they may exist but I haven't met them
▶ 0:18:11yet you're the best that I know of and so that's why we want you to be here because we know you can share uh what's important the most important part but as I said I represent rur Rural and growing communities in Kentucky second district access is critical for our students to do their homework for people to connect with their doctors and to stay in touch with their friends and loved one connectivity helps booler communities and the private and public sector Investments tolling in the billions of dollars to build out Communications infrastructure across the country
▶ 0:18:42have yet to close the digital divide for many Americans including many of my constituents who lacks access to the Broadband at home on the federal level alone there are more than 130 Broadband programs across 15 different agencies all with varying amounts of funding and and very amounts of success in 2021 the B program had more than 42 billion in tax dollars for Broadband expansion in unserved areas and yet as I said not a single inch
▶ 0:19:12of fiber was 2021 four years was four years not a single inch of fiber has been laid as a result despite naming vice president Harris as the Broadband Zar the B Administration failed to deliver on their promise of connecting all Americans through bead by failing to connect even one American a one siiz fits-all approach does not work as a first step the program needs to be reformed to be a technology neutral so states have the flexibility to choose what technology is appropriate for them
▶ 0:19:42we need to eliminate the burdensome and unnecessary regulations that the Biden Administration imposed that have nothing to do but nothing to do with the bill except to slow down the process this program has been a failure of mass proportions and we must act quickly to course correct so that billions of American Tax ta payers the dollars are not wasted will people get access to service and in a quicker and in prompt way in addition to be today we're talking about the fcc's universal service fund
▶ 0:20:12and this program supports brand service in high cost often rural areas a schools libraries rural Health Centers across uh the Kentucky and in the country and excess connectivity for low and income Americans so they can afford broadband service the constitutionality of the USF is being challenged in the Supreme Court and if the court ultimately holds that USF is unconstitutional the program will come to an end and it will be a devastating outcome if that happens leaving many
▶ 0:20:42Americans without service Congress must act to affirm the constitutionality of this program and hope this is an area where we can find bipartisan agreement to react quickly if we have to react quickly in addition to addressing the immediate need we also need to address the long-term syst sustainability of USF after almost 30 years Congress needs to reevaluate the role that USF should play in providing support particularly after the significant investment in Broadband over the past five years so I really look forward
▶ 0:21:12to today's discussion I appreciate my good friend from Kentucky for many years to be here and I look forward to uh what we the outcome of this hearing and Mr chairman with that all you back thank you chairman uh now recognize the gentleman from New Jersey the ranking member for 5 minutes for his opening statement thank you chairman Hudson the bipartisan infrastructure laws $ 442 billion bead program was designed to ensure every American household can connect to highspeed Reliable and affordable internet
▶ 0:21:43not one Republican on this committee supported those Investments instead committee Republicans have done nothing but undermine our efforts to deploy more reliable and affordable broadband and a regret that today's hearing is more the same with an eye in the rearview mirror just so the record is clear former assistant secretary Alan Davidson and his team at ntia Rose to the occasion to build an and implement the largest and most sophisticated Broadband program in our nation's history one with 56 different
▶ 0:22:13nerve centers and unique sets of considerations with independent planning and decision- making taking place in every single state and territory three states have received approval of their final proposal four states have completed their selection of internet service providers after WI L successful application rounds and 30 states are in the midst of running highly promising application rounds in six weeks however the Trump Administration has not moved one state forward in the process and this is not a surprise since the Administration
▶ 0:22:43has instead prioritize dismantling the federal government by gutting agencies and firing federal employees and Congressional Republicans have silently watched from the sidelines and we know that Elon Musk is salivating over the prospect of steering B dollars to his companies just yesterday the Wall Street Journal reported musk SpaceX and starlink could receive up to 20 billion dollars worth of bead funding under new plans being developed inside the Commerce Department musk's a grifter and
▶ 0:23:13Republicans are going to just stand by and watch to be clear many of the changes our colleagues have suggested for be can be done without delays or mandates uh loosening funding requirements they don't like while misguided does not require states to go back to the drawing board the poses we see at the Department of Commerce however are like Shackles on broadband providers in Louisiana NADA and Delaware who need only basic administrative approvals to begin their work in as little as six weeks and instead companies
▶ 0:23:43are sitting on tons of Supply with a labor force questioning if there will be work next month now make no mistake the current threat to the bead program could be avoided if only Republicans in the Trump Administration would get out of their own way and let this program move forward has intended this opportunity to connect every American to Reliable high-speed internet will not come around again unfortunately but I want to yield the balance of my time to representative Carter of Louisiana thank you ranking member palone in January of this year Louisiana
▶ 0:24:14became the first state the nation to secure Federal funding Federal funding approval for our plan to deploy 1.3 billion dollars in broadband and Equity access and deployment or beid funding this achievement is a testament to the bipartisan nature of Louisiana's approach to Universal connectivity and illustrates how we all should strive to treat Broadband access in our states the state began the bead process under the Democratic
▶ 0:24:44governor John Bell Edwards it completed its plan under the Republican Governor Jeff Landry who called this program a generational investment that will create thousands of jobs Drive billions in econ iomic growth and transform Louisiana's communities in all 64 parishes the state's plan will connect approximately 140,000 locations to highspeed internet through funding Awards to
▶ 0:25:1420 internet service providers and nearly 70 70% of the funds awarded to Louisiana companies more than 90% of these locations are set to transition from zero connectivity to Future proof Broadband fiber altogether these Broadband investments will drive significant economic growth for the state creating approximately 10,000 new jobs and generating an estimated two to3 billion dollar in new revenue
▶ 0:25:45for Louisiana companies however since the Trump Administration took office just a week after Louisiana received approval for its final proposal the Commerce department has has withheld final funding approval that would have otherwise put shovels in the ground and just 6 weeks in my home state and now we see reports just yesterday that Commerce Secretary lutnick is considering wholesale changes to the program that would
▶ 0:26:15cut or jeopardize all of the hard work that has been put into this point allowing significant significantly more money to go to Elon musk's satellite this unexpected delay has stalled progress Frozen Investments made by small internet service providers and contractors and left rural communities still waiting on the promise of broadband access this Administration must act and provide the certainty to Louisiana
▶ 0:26:46residents and internet service providers looking for answers and receiving none we have worked too hard and come too far to start over again any action by the current administr ation that would threaten this progress would be a grave mistake and I yield back Mr chairman gentleman yields back assume the ranking member would yield back um we've now concluded with member opening statements the chair reminds members that pursuant to committee rules all members opening statements will be made part of the record
▶ 0:27:16like to thank our Witnesses for being here today to testify before this subcommittee our witnesses will have five minutes to provide an opening statement which will be followed by a round of questions from our members the witness is here before us today are Mr Grant spellmire president and CEO ACA connects Tom Donovan president CEO competitive Carri Tim Donovan excuse me Tim Donovan uh president CEO competitive carriers Association thank you uh Greg hail CEO
▶ 0:27:47of LTC connect and Sarah Morris the former acting Deputy Administrator for the national telecommunications and Information Administration again thank you all for being here we look for for to hearing your testimony Mr spellmire you are recognized for five minutes for an opening statement thank you chairman Hudson ranking member Matt sui chairman Guthrie ranking member palone it is always an honor to appear before this committee America's Communications
▶ 0:28:17Association ACA connects proudly represents more than 500 independent broadband and cable operators across the country we serve all 50 states offering connectivity to nearly one in four American households although some of my members uh serve hundreds of thousands of customers most of them serve only a few thousand customers and only in a county or two in one particular State they remain committed
▶ 0:28:47to finding ways to make quality broadband service available and affordable to all Americans they live in the communities alongside their in the past 5 years in the face of the covid-19 pandemic they have expanded coverage of broadband by 64% while my members often prefer fiber builds because of their Superior performance and durability they all they deploy all available Technologies
▶ 0:29:18to get the job done my members have deep roots in the communities they serve that can be traced back Generations I was explaining this to my children the other day but folks don't understand any longer uh why how cable television started it started because the largest providers were ignoring Rural America and M members needed a way to bring programming to places where broadcast TV signals couldn't reach providers
▶ 0:29:49actually dragged cables over the hills in order to bring that signal to customers today it's evolved into to what we in the Broadband world uh this history is why many of my members were initially very eager to participate in bead when it was passed by Congress unfortunately their enthusiasm has waned due to the way nitia subsequently implemented parts of law the areas that remain
▶ 0:30:19to be served today are the most costly in the country the job won't get done but for things like the bead program the reality is every dollar a provider uh spends complying with unnecessary burdens is a dollar that uh is gone uh from investment and drives up prices by happen stance ACA connects has a large presence in town this week we're we're up on the hill the timing
▶ 0:30:49is good we really have a simple message uh we my members are ready to finish the job in Rural America we urge Congress to fine-tune the program and to get shovels in the ground later this year in order to do that Congress should direct the ntia to strip costly and extraneous requirements that are deterring participation and ensure that states have reasonable flexibility in evaluating the Broadband technologies
▶ 0:31:19that should be used in each state the one thing we can't afford to do is to materially delay implementation states that are ready to proceed quickly should have the flexibility to do so beyond the bead program itself Congress must act to speed up the deployment of broadband by adopting permitting and right-of-way reforms specifically we encourage Congress to adopt reforms that encourage consistency in state and local
▶ 0:31:49permitting and to take action to streamline and harmonize permitting policies across federal agencies ACA connect was proud last year to support Congressman buddy Carter's Bill uh the American Broadband deployment act and we are also glad that congressmen fluger and stto uh are leading again this year on the federal Broadband deployment tracking act backing up to the 50,000 foot level uh as you all know this committee
▶ 0:32:20has a long and proud Legacy of bipartisan solving as the courts uh have recently affirmed Congress writes the laws and federal agencies Implement them the issues that we are discussing here today in my opinion are all ripe for Action by committee the committee should act to codify clear direction to the federal agencies involved on both of these subjects and move forward quickly uh we
▶ 0:32:50also urge the committee to apply this approach let's call it regular order to tackling other thorny telecommunications issues on under its jurisdiction whether that be Universal service reform or guaranteeing a free and open internet Congress has a golden opportunity to codify rules that will remove uncertainty and encourage investment uh and with that uh we look forward to working with the committee thank you Mr Donovan you're recognized for five minutes for an opening statement
▶ 0:33:20thank you chairman Hudson ranking member Matt sui members of the subcommittee thank you for the opportunity to testify about the challenges facing rural Communications providers CCA members range from small rural providers serving fewer than 5,000 customers to Regional and Nationwide operators serving Millions as well as vendors and suppliers throughout the communications ecosystem connecting communities using all Technologies available including mobile fixed Wireless wired and satellite every day CCA members work to
▶ 0:33:50provide highquality Broadband Services by upgrading and expanding their networks including in the most remote and hard-to serve areas across the country I'd like to say take a moment to say thank you for the work to fund the shortfall in the rip and replace program which created an existential threat to rural connectivity in several areas we look forward to working with you and the FCC to see this program to completion and continued work on network security as policy makers consider the future of rural connectivity we are at an inflection point
▶ 0:34:21decisions made today will either Advance American leadership in the communications industry including 5G and Future Wireless services and close the digital divide or risk abandoning critical Investments That rural Americans rely on every day decisive action is needed in several key areas first the universal service fund must be sustained and modernized USF is the most effective tool for Bridging the digital divide including preserving existing networks while work continues to expand
▶ 0:34:51Broadband access it is the backbone over Ral Broadband the Supreme Court's review of usf's consti U ality presents a direct threat to connectivity Across America Congress must be prepared to act swiftly to preserve USF if the court identifies concerns additionally USF should be modernized to broaden the community contribution Bas to include those that benefit from the networks it supports and support must be available to maintain and preserve networks second the 5G
▶ 0:35:21fund needs improvements within the USF high cost fund the 5G fund is intended to support rural mobile broadband but needs adjustments to ensure success specifically the 5G fund must base any transition away from Legacy support on availability of ongoing Operational Support use updated service and speed eligibility thresholds and have a budget based on anticipated needs to complete the work additionally funding decisions must be guided by reliable data with a robust
▶ 0:35:51challenge process currently the Mobile coverage map is not living up to the promise of your goal in passing the broadband data act the fund should also be aligned with other programs like bead third targeted bead improvements will maximize deployment the bead program is an important investment in rural Broadband but its implementation must allow flexibility and Technology choices bead should Empower local providers who know their communities the best to select the technologies that make the most sense for each situation
▶ 0:36:22including fiber Wireless and satellite additionally policy makers should avoid conditions that make bead participation prohibitively challenging and maximize the program's impact by reducing permitting delays and ensuring bead funds are not taxed as income fourth restoring Spectrum auction Authority is urgent it's been nearly two years since the fcc's auction Authority expired this delay threatens America's Wireless leadership Congress should not only reinstate auction Authority but also
▶ 0:36:52ensure there is sufficient Spectrum available for full power commercial use and build on policies that ensure carriers serving Rural America have a meaningful opportunity to secure Spectrum policy makers should also maximize the utility of spectrum currently available for wireless use including increasing power levels in the cbrs band to better serve Rural America finally citing and permitting reforms can accelerate deployment as Congress explores ways to support deployment through Broadband programs
▶ 0:37:22like bead and USF updates to citing and permitting processes should align and enhance those initiatives CCA members need permits from federal state and local authorities depending on the area to deploy maintain and upgrade their networks current processes for acquiring the necessary permits from various agencies can take months or even years efficient manageable and predictable permitting processes will increasingly necess will be increasingly necessary to process the volume of applications and workload
▶ 0:37:52which will inevitably come with the roll out of bead and other programs in closing every CCA member has an interest in ensuring that all Americans have access to the latest Broadband Services especially those in Rural and high-cost areas CCA is committed to working with all stakeholders to accomplish the challenging task of promoting Broadband connectivity for millions of consumers in Rural America thank you for the opportunity to testify at this important hearing and I welcome any questions thank you Mr hail you're recognized for five minutes for an opening
▶ 0:38:22statement thank you chairman Hudson reiking member Matsui chairman Guth ranking member palone and members of the subc committee thank you for the opportunity to participate in today's hearing focus on how best to promote access to broadband I'm Greg hail CEO of LTC connect in Auburn Kentucky Incorporated in 1954 LTC connect is a smart Ral Community Cooperative owned by our members we provide up to 5 gigabit broadband internet and voice services to an area of more than 500 square miles in rural South
▶ 0:38:53Central Kentucky we are members of ntca the rural Broadband Association which represents about 850 rural Broadband providers that are delivering Broadband services in deeply rural communities ntca members collectively serve less than 5% of the population of the United States but nearly 30% of its land mass today I would like to emphasize the essential essential mission of universal service which is not just getting Americans connected but keeping them connected if we do not meet this challenge we will
▶ 0:39:23see hearings like today being held five or 10 years from now asking how we missed the Mark the rates that rural consumers pay are rarely sufficient to cover the cost of building and operating a network the single biggest challenge to connecting Rural America and keeping it connected is simply making the business case to build and operate any Broadband Network at all this is where the high cost USF program created at the FCC to fulfill the requirements of congress's 1996 Telecom act hits The Mark with USF support providers
▶ 0:39:53can make a business case for delivering and sustaining Broadband Serv services for Rural citizens at affordable rates rural providers have been able to leverage grant funding to get to some locations previously unserved most grants require some percentage of capital match many projects like ours at LTC connect do not involve grant funding at all but leverage the use of loans or private capital projects are undertaken after a business analysis that involves the continued receipt of universal service funding
▶ 0:40:24USF does not reimburse Capital expenses immediately but reimburses expenses gradually over the depreciable life of the network for ntca companies this cost recovery often takes place over a period of 18 to 30 years unfortunately USF programs are under attack and the sustainability and affordability of connectivity for millions of rural Americans is at risk a 9-7 fifth circuit decision declaring the USF contribution method unconstitutional is now before the Supreme Court for review and
▶ 0:40:54a negative decision could have devastating impacts foro band in Rural America recent ntca member survey show rates could Skyrocket to an average of $165 a month where service even survives and all new investment is chilled we urge all members of Congress to stand ready to support legislative efforts that could help ensure that rural Americans stay connected while also reforming USF contributions so all that benefit from Universal connectivity do their part the bead program is of
▶ 0:41:24great importance and if executed effectively will provide required Capital to reach most if not all unserved Americans many ntca members are actively evaluating participation in the program there are parts of the bead program that should be closely examined for modification these changes need not reconstruct the program from scratch but just re-calibrate as the program continues to move forward to serve those in desperate need of broadband first I would recommend that Niti consider publishing all waivers that have been granted
▶ 0:41:54to various States and consider whether these can made available be made available to all states ntia could also develop a more reasonable approach to the lowcost option that better reflects the challenging economics of rural areas additional considerations may include relaxing the letter of credit requirements relaxing Workforce obligations and other policy changes that do not relate directly to the deployment of broadband it's important to use every tool in our toolkit to achieve the beads program's Mission
▶ 0:42:25we will not get the same kind of networks every everywhere but this does not mean we should settle for the lowest common denominator either since dialup internet was launched over 30 years ago we have consistently underestimated the amount of speed and capacity customers will require in the future robust networks that can Pro provide what businesses and customers need today and what they will need well into the future should be the goal even as we Empower states to make the best decisions for their unique circumstances
▶ 0:42:55in my written testimony I also other issues that require attention including permitting delays the accuracy of the Broadband map and the taxing of broadband grants ntca members like LTC connect are deeply committed to the customers we serve and given our track record of success in rural areas small communitybased providers should be seen as a critical component of any strategy to achieve Universal service we look forward to working with you and other stakeholders to ensure that all Americans will experience the many benefits of broadband
▶ 0:43:26for decades to thank you again for the opportunity to address these issues and thank you for your commitment to getting and keeping every American connected thank you Miss Morris you're recognized for five minutes for your statement chairman Hudson chairman Guthrie ranking member matsi ranking member palone and members of the subcommittee thank you for the opportunity to testify today we stand at a pivotal moment in our nation's Broadband expansion
▶ 0:43:56efforts over the last three years states have made tremendous progress implementing the Broadband programs established under the infrastructure investment and jobs act middle mile projects are under construction with over 4,500 miles of fiber being built digital Equity grants are being awarded and states are in the final stages of the 14-step bead process set by Congress through bead the states are working to connect everyone in America to Affordable reliable high-speed internet we are on
▶ 0:44:26the verge of historic Broadband deployment in each of your districts but right now all progress is at a standstill since the new Administration took office the Department of Commerce has issued no new guidance or approvals this inaction means that communities in your districts remain disconnected if we do not restart these programs very soon we risk throwing away years of careful planning and bipartisan effort in the states these Investments are critical
▶ 0:44:56the the Broadband Grant programs were designed to overcome the economic and social barriers that have kept the hardest to reach communities offline as a subcomittee knows connectivity isn't just about convenience it's about access to health care education jobs and Opportunity for example the Department of Veteran Affairs has found that tah Health can be just as effective as in-person mental health treatment when veterans received improved connectivity suicider related emergency room visits decreased by 36%
▶ 0:45:27allowing veterans to receive Critical Care in the comfort of their homes for these individuals Broadband access is quite literally a life or death issue in rural areas Broadband can transform communities sparking entrepreneurship and increasing business Revenue even before shovels hit the ground communities see the benefits in North Carolina and Georgia fiber companies have invested hundreds of millions of dollars in new fiber manufacturing facilities bringing jobs and revenue directly to these states
▶ 0:45:57and by boosting domestic manufacturing capabilities these programs ensure for example that us aai data centers will be connected with americanmade fiber rather than Chinese fiber despite these Investments some have expressed concerns about the pace of the bead implementation the reality is is that states are almost finished with the 14-step process Congress designed all 56 States and territories have completed key planning steps and most are in the final stages of selecting providers and approving Project funding more than half are already reviewing
▶ 0:46:28bids from isps to Halt progress now or Worse Force states to redo their work would be disastrous it would delay Broadband deployment for years and waste taxpayer dollars Congress intentionally gave States flexibility in implementing bead States know best how to address their unique geographic and economic conditions and they should be allowed to make the transformative Investments that they are poised to do states have already addressed the most controversial areas of the law
▶ 0:46:58the law requires isp's receiving bead funding to offer a lowcost plan defined by States in consultation with Nia states have already developed reasonable flexible market-driven solutions to meet the statutory requirement similarly the law prioritizes future proof Technologies like fiber optic networks ensuring that communities receive infrastructure that can meet the needs meet their needs for decades however the law also allows flexibility if fiber is too expensive in SE area states can deploy other Technologies
▶ 0:47:29including fixed Wireless or satellite service instead the three final proposals we've seen reflect the range of ways that states are implementing these statutory requirements and we know that access alone is not enough many people especially seniors veterans and Rural residents need support to adopt and use Broadband effectively the law includes digital Equity grants to help individuals gain digital skills access devices and feel safe online these programs are already well under under way cutting or delaying these efforts
▶ 0:47:59would undermine the entire purpose of the Broadband expansion ensuring that everyone in America can fully participate in the digital economy we are closer than ever to closing the digital divide more than half the states are actively soliciting bids to deploy broadband and three states have completed every required step in the bead program but without action from the Department of Commerce these efforts are stalled Congress must ensure that states can proceed with their plans we have a rare opportunity to cor to connect
▶ 0:48:29every home every farm and business in America to high-speed internet let's not squander it thank you and I look forward to your questions thank you I now recognize myself for five minutes to ask questions um Miss Morris you were a senior advisor at nitia when the bead funding uh notice of funding opportunity was developed and implemented you know as much about this program as anybody um so I appreciate you being here with us today um was it Nia's decision or the White House's
▶ 0:48:59decision to include the fiber um so it's a complicated question to answer the the the noo it was nti's decision the assistant secretary signed off on the noo and released it and a lot of discussion went into the preparation decision-making um behind the noo and as we were drafting as ntia was drafting the noo um a lot of fact factors went into um how
▶ 0:49:30how each Equity was was threaded and the ultimate goals of the program that we wanted to achieve and the goals that we wanted to achieve were to push fiber as far out as economically possible and to allow other Technologies which we recognize would be important in the in reaching the goal of connecting everyone in the country to Affordable reliable high-speed internet to allow those Technologies to be a part where fiber was not economically feasible gotcha um did the extraneous require on labor and climate come from Nia or the
▶ 0:50:00house the entire noo came from ntia and was signed off by leadership at Nia appreciate that um and so then it was Nia's decision to to force states to regulate rates despite the Law's prohibition for that or was that the law is very clear that every state is required to set a lowcost option in consultation with the assistant secretary and in consultation with nitia and with approval of the assistant secretary and Nia followed the law in regard to that requirement well were you
▶ 0:50:30aware that Nia was violating the law by forcing states to include a rate or formula for a rate uh in their initial proposals ntia followed the letter of the law as as we interpreted it okay well I appreciate that answer um Mr spellmire um uh I've heard from many providers that uh that plan to participate in the bead program that these unne requirements will continue to delay Broadband deployment um do you agree
▶ 0:51:00that removing labor requirements uh rate regulation climate standards as well as streamlining permitting will speed up the Broadband deployment uh yes Mr chairman my members support uh all of those items you just listed it's certainly been a uh uh it in some of those in instances it causes delay in others it increases prices cost and therefore um the number of areas
▶ 0:51:30you cover I I agree with that um Mr Donovan Nia uh has not administered the bead program in a technology neutral way uh how has the lack of tech neutrality and bead affected cca's members as our members look at the opportunities for bead they're just asking to be able to use every way they possibly can to connect their neighbors I think they know their geographies they know the challenges they know if you need to go around a river they know where Wireless
▶ 0:52:01makes the most sense they know where to put fiber um so just asking for that flexibility well you know my State experienced a devastating hurricane last fall um we had folks disconnected from loved ones for days unable to reach emergency workers for help um what can we do to restore connectivity faster during recovery um efforts in the future yes so as we work with our our members especially in North Carolina and in plac where entire wired networks were completely washed away restoring Wireless and
▶ 0:52:31mobile services is an immediate way to provide connectivity and what would be really beneficial for that is making sure that those carriers can use their Spectrum resources most efficiently to to connect their neighbors and their communi so that includes things like taking Spectrum licenses they have in the cbrs band and being able to use power levels that are comparable to to neighboring bands that allows signal to go three to five times further from the same Tower um so things like that would be really helpful to make sure you can restore Services immediately I appreciate that
▶ 0:53:01um I will now um recognize uh the ranking member of the committee Miss matui for five minutes to ask your questions thank you very much Mr chairman roughly one in five American households lack access to high-speed internet they can't afford to wait on broadband yet Republicans are risking changes to the bead program that would delay and weaken this once in a generation investment this is even more for frustrating when states are nearly at the Finish Line States like Louisiana as Mr Carter
▶ 0:53:31said you know they're ready to push shovels in the ground in a matter of weeks and what happens if the Trump Administration gets out the Trump resistent gets out of their way if they get out of their way and they can do that Miss Morris what is at stake for American people if bead funding is further delayed and disrupted thank you ranking member for the question um everything's at stake and this is a once in a generous generation opportunity um I don't believe that we will ever again get 42.5 billion dollar to connect uh
▶ 0:54:02every corner of the country to highspeed affordable internet um and without access to high-speed affordable internet communities are losing access to health care jobs education Economic Opportunity and that's being exacerbated every day that we we pause this program and fail to put shovels in the ground especially a states are right on the cusp of doing so right thank you Congress made clear that providers taking Federal be dollars offer at least one lowcost plan Miss Morris how would Americans be impacted by Republican
▶ 0:54:32proposals to weaken this requirement if we're investing all of these resources into building these networks but they aren't affordable to the communities they are designed to serve then we are building bridges to nowhere we're building networks to no one and states have worked through um the analysis and done careful planning to understand what affordability means in their state and have set um have implemented the the guidance of the statute appropriately in a variety of ways now I'm also
▶ 0:55:02concerned about Republican's attempts to divert bead funding from fiber Broadband infrastructure to satellite Technologies like Elon mus starlink the bead rules preference for fiber were economically viable isn't just happen stance optical fiber infrastructure can support the connectivity needs of consumers for decades and fiber is a super highway for data intensive Technologies such as AI I and fix wireless unlike fiber satellites need replacement about every 5 years and can be widely
▶ 0:55:32more expensive in the long run Miss Morris why would cutting back on beads investment in fiber technology risk a two-tiered system and who will these changes hurt the most thank you um ranking member as you know fi fiber is the platform for Next Generation for our next generation of innovation and communities that lack access to fiber um will continue to suffer uh if you want 5G and 6G connectivity in your districts you
▶ 0:56:02need fiber to your districts if you want Advanced Health Care Systems to your districts you need fiber in your districts if you want next Generation 911 service in your districts you need fiber in your districts now we recognize uh Niti recognized in the B noo that um fiber is not an econ economically viable solution for every single household but the goal of the the notice of funding opportunity is to and the goal of the statute is to push fiber as far push high capacity internet as far as possible
▶ 0:56:32and to rely on other Technologies to fill in the gaps where it's not economically viable absolutely um reliable high-speed Broadband access is a fundamental pillar of Modern Life from rural Broadband deployment to vital programs like lifeline and eate the universal service fund has been a savior for millions of Americans that's why I'm co-leading the bipartisan bamal group USF working group to find Solutions and ensure USF remains resilient for years to come that's why I also joined a bipartisan Congressional
▶ 0:57:03Amicus brief to the supreme court defending the constitutionality of USF Mr Donovan as we expect a decision regarding USF in June can you describe what the impact to your consumers will be if USF is eliminated or significantly altered by the Supreme Court certainly and and thank you for joining 28 of your colleagues on that that bipartisan Bic Camal brief it was as greatly appreciated and for your your ongoing work with the USF working group to provide long-term solutions to that um here
▶ 0:57:33to ring the alarm that there will be immediate uh problems of connectivity for americaas immediately if the Supreme Court uh ends Universal service fund this isn't waiting for systems to degrade and customers will eventually be cut off the the actions on the those impact that you mention both in high cost areas low low income uh schools and libraries there will be immediate devastating effects and so so if I can leave you with one thing today is that Congress needs to be prepared to immediately act and to act decisively to restore this
▶ 0:58:03program if the Supreme Court goes in that direction okay thank you Mr hail do you agree I agree completely okay great thank you very much and I ran out of time thank you yield back GLE lady yields back the chair now recognizes the chairman of the full committee Mr Guthrie oh oops the chairman now recognizes Mr Allen the gentleman from Georgia oh there he is all right we're GNA we're going to try this again the chair now recognizes the chair of the full committee Mr Guthrie you Rec than R back had to come back to see my my
▶ 0:58:33good friend Mr H so Mr H so Logan telephone or LTD connect re received support from Universal fund would you kind of walk through for the committee what would happen uh impact on consumers I I know a lot of people have similar businesses to yours tell them who Logan telephone is and then it's a co-op and and uh what would happen if we had the U what would be the impact on on constituents and consumers yeah it would it would be devastating for he not a for-profit b is a co-op I want to stress that right for my
▶ 0:59:03company and companies like mine um you know we're we're finishing up a fiber project now within the next few months we'll be 100% fiber and the way the universal service fund works again as I mentioned it's the depreciation so we have huge depreciation expenses and if the Court ruled assuming it meant that USF went away completely they're you know arguing primarily over the contribution Factor if USF went away completely then we would quickly have very negative operating income
▶ 0:59:34and I'm a co-op I'm a nonprofit we don't have to we don't have to make a profit but we can't lose money every year so it would affect the longterm viability of my company it would affect obviously the Broadband that we provide to customers today uh which is very very robust in the customer service that we provide to our members thank you I appreciate that and uh Mr um spell hour um my understanding is uh as we're talking a lot about what's happening here
▶ 1:00:04in in DC and the argument is that Congress authorized money and spend it and the executive branch isn't spending the money that was authorized by Congress we're probably three over three years almost four into the into the bead program and we know that that the executive branch was putting restrictions that Congress has did not put on to spending the money I guess we're kind of fortunate that that's the situation because now we have the opportunity to fix it uh with a with trying to get this out would you talk about what the biggest obstacles for participating in the
▶ 1:00:34program and the requirements what what it causes to to prevent you from being able to expedite the the program the participation in the program absolutely Mr chairman um and and I and I and I would agree with you first and the good news is this is an opportunity to reset the table and uh and get the job done and as I said in my statement the my my members are anxious to to do that um I think the uh the uh the requirements
▶ 1:01:04that ntia allowed the states to impose in a number of the areas that have been enumerated uh are particularly problematic because they raise the cost of providing the service uh be that uh prevailing uh wage rates uh as one uh there are there are a whole number as we've talked about climate change related items that depending upon how a state has interpreted that is is causing
▶ 1:01:35is causing issues um we all are committed to affordability we've seen some states that have gone beyond uh low-income affordability to middle class affordability uh that uh are causing issues and there are a whole slew of Permitting challenges that that make it very difficult for my members on a day-to-day basis to build Broadband I was talking with a provider last night uh from
▶ 1:02:05Ohio and talking about how he regularly has a slew of projects that are three years in the queue at utilities because of Permitting reform because of per because of Permitting permitting problems of the per problem so Mr H let me to Mr H have you heard similar things from other providers you experien similar things or has the Commonwealth of Kentucky done things that make it difficult for you for us to use this program we we have been there have definitely been issues in the Commonwealth
▶ 1:02:35there are other states that it's much worse what what are our our issues what is our executive branch putting on that um well it's the environmental and historical the timing on environmental seven or eight months once you maybe get approval from projects this is going back like USDA projects reconnect uh we've had uh issues with the Army Corps in in sometimes you know taking 18 months to get approval to attach to a existing pole line that's already there you just need to add anchors
▶ 1:03:05to to string fiber so we we have had had those areas and you know the the business plan for the areas that are left is tough any provider is going to be taking a pretty good risk because we don't really know what it's going to cost to build these networks when all the money starts flowing the Ling fruit any any burden that you add or any requirement that's not Absolut necessary hurts the business plan to build these these last high cost areas thank you that's that's helpful and I will yield back thank you Mr chairman the chair now recognizes the
▶ 1:03:36ranking member of the full committee Mr palone for five minutes to ask your questions thank you chairman hon a report from The Wall Street Journal yesterday indicated that the Department of Commerce is considering changes to the bead program that could award nearly $20 billion of bead funds to starlink a service that is already available to every single American today and anyone who wants to sign up can do so with it without a dime of taxpayers money the be program was designed to overcome barriers dividing the communities
▶ 1:04:06that are economically feasible to serve with private capital from the communities that are not while also ensuring those on the wrong side of the digital divide are not subjected to second class service now my question I have three of Miss Mars do you think there is an appetite among states for awarding nearly half of the bead program funds to satellite Broadband providers thank you ranking member uh I have not heard that type of interest uh from States I I did not hear that type of of interest
▶ 1:04:36in my time at ntia but I moreover what what I have heard from States and continue to hear from States is a desire to move these plans forward that they have spent the last three years working through they've worked through the FCC Maps they've had their initial proposals approved they've worked through their um subg granting process and they're um internet service provider selection process and some of them have submitted their final proposals and had them review approved by the assistant secretary at Nia states are on the one yard line at this point
▶ 1:05:06and they just want the ability to uh get into the end zone get these shovels in the ground and get things built and anything that will set back or create more red redundant work um on these plans um I think will be frustrating to these State Broadband offices I like the football analogy over the past two years we heard a steady course of fear-mongering from a small number of stakeholders who claimed the requirements of the bead program were so onerous that providers would not
▶ 1:05:36participate and the program would fail so again M moris what is the level of bead participation in States currently and are providers refusing to participate in application rounds or is it more robust than than we were led to believe I mean I I think you just look at the three states that have had their final proposals approved that worked all the way through the 14 steps of the bead program laid out by Congress and to see that they have um in Louisiana 95% fiber participation uh and um other providers
▶ 1:06:06filling in the the remainder Nevada also has robust fiber participation other providers filling in the remainder and and Delaware which was able to um use all of its uh bead support to build fiber to to every home okay and then my third question I I I think it's good to hear that state Broadband officers are seeing such such promising levels of participation given some of the rhetoric today although I am concerned that companies will be discouraged from participating in the Trump administration's redo a beid
▶ 1:06:37especially now that we know the Commerce department is planning to stack the deck in favor of Elon Musk SpaceX this time around but third question Miss Mars if the Trump Administration forces States and internet service providers to restart the bead process from Square One what effect would that have on stes and providers confidence in the future of the program and what would that mean for consumers well I think a dramatic uh reset of the program that involved redoing
▶ 1:07:07any significant amount of work that the states have already completed would be very challenging for States and um would would be uh states have invested three years of their time standing up Broadband offices navigating the mapping process drafting their initial plans working with industry in the state to get these plans to the final stages um of the process and um you know I don't think there's any guarantee one that that every state would continue to participate and um you know it's hard to say what the the full impacts
▶ 1:07:37um of the program would be if we were to walk things back that dramatically all right thank you so much and I yield back Mr chairman I thank the ranking member the chair now recognizes the vice chairman of the subcommittee Mr Allen you recognized for five minutes to ask your questions uh thank you Mr chairman and thank you for being here today and uh as we talk about implementing uh this important program that we've been working on for some time in in Congress uh during my time in Congress we've worked continuously
▶ 1:08:08and to expand rural barban across my district and we have made great progress particularly with our uh uh co-ops and whatnot using the universal fund but where we have for-profit com companies uh you know obviously we are having to use other funding methods um the be program provided 65 billion in additional funds to support Broadband activities it's brought the total amount provided by Congress
▶ 1:08:38for Broadband to well over a hundred billion doar uh bade was full of unnecessary requirements and as a result not a single inch of fiber has been laid uh with these funds and then all of a sudden we're talking about the new Administration which I think he got confirmed about two weeks weeks ago you know that's uh that's interesting but um you know and and we're seeing uh you know Georgia's right to work state and so we're seeing now in
▶ 1:09:08government projects these project labor agreements which are very complex in fact you if you actually have a bidder on your project and he is the low bidder and the government can uh can dictate that okay you don't have a project labor agreement so they give it to the next contractor I mean are we seeing that kind of stuff in these programs Mr spel uh we absolutely are congressmen and as I've reflected on the
▶ 1:09:39dialogue here uh back and forth so we we have a ACA connect has a study we did in 2023 that I believe we shared with ntia that that estimated that the the cumulative layering of all this was uh approximately 60% additional now additional cost additional cost wow now now the actual reality is as we've come further we're seeing differences across the states as it is played out uh but I I just heard uh yesterday
▶ 1:10:09from one of my members in Pennsylvania that the prevailing wage issue there alone was driving almost a 70% uh difference in the state of Pennsylvania for my providers there's there's lots out there the other thing as as it stands now do many ACA con connects member connect members plan to participate in beid because of this unnecessary burden there are some that are participating there were many more that were initially interested as I talked
▶ 1:10:39with them this week they want to come back and they want to come in and the good news is I don't think we need to restart the process as has been suggested right I think we can um move expeditiously to strip out the stuff that needs to be stripped out and then get about the business of finishing it I think ntia could Grant waivers uh either through ni or the Department of Commerce that would allow states to proceed but remove some of the provisions yeah
▶ 1:11:10because we're seeing we're see we're seeing this in in the Doge effort today about the excessive cost of doing doing business and waste of taxpayer money by the federal government M uh Mr Hill are you seeing the same thing in Kentucky um not as much of course we're not as far along but uh you know that's definitely a potential uh issue that could we could see that uh we hope we don't what is one barrier Mr Hill that you would like uh U remove to uh as far as deployment is concerned either
▶ 1:11:40related to beat or not um you know to be to be honest the Kentucky office has been open and flexible to try to make to try to follow the Niti guidelines um and not not make them any more burdensome I mean they're they're they're walking the line they they want to they want to get the job done in Kentucky but obviously the the permitting uh the lowc cost option we've got a lot of flexibility in Kentucky but there are states that don't you know
▶ 1:12:10and a lot of Inca members have problems and it will restrict them from participating in bead how about you Mr Donovan I think some of the the workforce issues from an industry overall we we do not have the workforce that we need to complete this um across the country and that's why we've been pleased to work with Partners like groups like Warriors for wireless that are helping transition vets into wireless tower climbers programs at Nate and wi and other partners but the the bigger picture is that we need more Workforce education we need more workers in this industry we got 7 million
▶ 1:12:40open jobs in this country right now and everybody's screaming about you know layoffs and all that stuff I mean it's ridiculous but anyway all right well I'm out of time and uh I I yield back Mr chairman thank you uh chair now recognize as representative so for five minutes to ask your questions thank you chairman you know I was proud to be able to vote for the American Rescue plan which already started delivering a rural Broadband to areas of my district like Deer Park Bull Creek keenansville
▶ 1:13:10uh one of my constituents even wrote to Spectrum which is doing some of this work good afternoon everyone I had to just share my excitement with you all after an entire lifetime of not being able to have so much as a phone line at our rural Oola County canaanville home as of today we now have Wi-Fi as I type this spectrum just finished installing it it is incredible to experience firsthand the very goal that we all contributed to beginning some time ago I know
▶ 1:13:41it's not complete for everyone yet but it still is amazing uh Tiffany chadman is on the double zbar Ranch in South aolan is a sixth aolan and uh unfortunately my colleague across the aisle they always they all voted no on that bill and then we got together to pass the rural Broadband program that we're talking about today the bead program I'd call it the bipartisan infrastructure law but every single Republican on this committee
▶ 1:14:11also voted no on that bill and so to hear things like suddenly now you're the champion to World Broadband I think you guys call that fake news right we need to work together and I think it's great look if we would have sped up the program yall would have said there was fraud or waste since the program was you felt too slow now it needs to be more efficient the reality is we had to go through Maps the states presented plans and we're moving forward but I suppose it's better L and never
▶ 1:14:41and we welcome the bipartisan help the good news is that the states are ready the plans have been approved were queed up to deliver for Rural America but now the Trump Administration wants further reviews further delays and you're still talking about Biden uh I got a great name for this hearing stopping Trump's Broadband plunder as an alternative because we see delays and then I'm worried is this going to go into billionaire tax cuts is it going to be
▶ 1:15:11um move to other areas you know this delay 45 days in counting is a big concern now we work both with Broadband we work with satellite in our area we know fiber is fast it is costly in some areas and so we had a balance we saw the FCC adjust to with the Nia to allow for uh some satellite uh internet to be part of this 4.1 billion uh it's even part of Florida's plan
▶ 1:15:41but we know Broadband is the foundation of this and so uh Miss Morris uh the states have submitted their plans do you feel like they're ready to go it seems like you think they are I absolutely think they're ready to go they've invested years and ACH years of work into these plans uh have worked with the providers in their state have worked with other stakeholders in their state and have worked with Nia and um are ready to get shovels in the ground as we heard from um Congressman Carter from Louisiana now do you know why the funds are still frozen 45 days into the Trump Administration uh I
▶ 1:16:11don't have any insight to how the current Administration or the current um leadership at the Department of Commerce is um overseeing these funds have you seen any public statements by the current ntia officials about why the funds are frozen um other than today uh right before this hearing um a desire to to take another look uh at the program and and no and what do you think this would mean as far as delays do we have any timetables as far as how long these delays could go have you see them talk
▶ 1:16:41about that I don't have any Tim taes I will say that the the the scale at which if the Wall Street Journal story yesterday is correct the this the scale of that shift that is proposed in that article um it's hard to know exactly how that would play out but could involve um a a pretty significant uh reset of the program and going back and asking states to redo their plans based upon your experience from working at nitia how long do you think that could set back if they have to reassess
▶ 1:17:11all these plans years so you couldn't even tell us it'd be uncertain amount of time that we could see delays for a program that today they're talking about how there are delays and yet what is happening right now at this very moment with the Trump Administration is causing uncertain delays Mr chairman you know we want to work together we want to get this done you have rural areas I have rural areas a lot of my friends across the aisle have rural areas we want to make sure this thing gets moving forward and
▶ 1:17:41uh if we have to have States redo all these plans I know North Carolina I know New York and I know Florida would be upset by that so I'm I'm committed to work with you and others to try to get this thing moving and this is the challenge that faces our community today and the yield back appreciate the gentlemen appreciate your comments look forward to working with you on this U the chair now recognizes representative L you recognized for five minutes to ask your questions well thanks very much Mr chairman thanks everyone for being here this afternoon and this is really important topic
▶ 1:18:12I've I've been very fortunate to be on the subcommittee since the the day I I joined this committee back in 2010 and we're talking about broadband and getting it deployed is one of the things that we have talked and talked and talked about and I think it's important that we get this thing solved so we can get get it done because I think we had statistics out there there about 8 million families across this country they don't have access to broadband if you don't have Broadband not only for schoolwork for telea health and you think about small business especially in my district if you don't have
▶ 1:18:43um Broadband you're done so it hurts the small communities because those small communities have a problem and you know all of a sudden this company goes you know what if I can't if I don't have Broadband am I going to connect with the outside world and then I think about the when we think about the the connectivity we need to have for our our farmers and the legislation I had in the U last Farm Bill uh is important for our agricultural uh producers and we want to make sure and another piece I'm working on right now
▶ 1:19:13uh when you think about U keep moving that so our our R uh folks out there can have that Broadband deployed but you know there's the problems that we have and again again uh before I can ask a few questions you know the the report came out in 2022 goo that we have 10 over 130 different programs administered by 15 different departments and agencies for Broadband crazy you know why not just have one couldn't we
▶ 1:19:43do things faster but instead of having 15 uh different departments and agencies and you talk about limited resources out there in fragmentation that's a problem and you know then we had the issue uh several years ago at the FCC Maps then they brought out the maps and I remember I I called the commission and I said Hey to tell you this when they asked us to look at the maps they said um what do you think and I said I'm going to tell you what I think they're wrong they had like the entire state of Ohio being covered and so we invested $7 million
▶ 1:20:14at that time to do something about broadband and we're up to about $98 million the last time I saw making sure we had accurate maps and so one of the things I just like to ask you know is we have the folks here when you're thinking about on the Broadband on deployment and those maps are and what the fcc's changed because I know when the Commissioners were in here uh in the last Congress I asked them I said are they are the maps working and there's pretty much uniformity among the commission at that time that you know they thought
▶ 1:20:44the maps were working but can I just go down the line and just ask everyone of simple question do you think the maps are are working for for everyone out there right now this SPM uh my members believe that the Wireline maps have been improved substantially I've testified in front of both the house and the senate about many challenges in the Wireless World previously Mr Jonathan I'll I'll pick that up right there that there has been a lot of improvement on the the wired on the fixed Maps
▶ 1:21:14there's a lot of work left to go on Mobility to put some data behind that you in the broadband data act set up processes to challenge these Maps so if you or your constituents know that the map's not right you have a mechanism to say look we have to fix this before we move forward there's been approximately 3.7 million uh challenges that were accepted on the fixed maps and there's about 175 challenges that were accepted on mobile so about a little more than 2 million per more challenges have been accepted I more work is left to go on the mobile maps to make sure that we
▶ 1:21:44can challenge them and fix them so that they can actually guide where we know Mobile coverage exists than you Mr H I would say much improved um there's still there's still significant issues um you know the wi Line's good it's pretty easy to report Wireless is a little tougher and not enough accountability for companies that overstate their coverage still there's still significant overstatement of coverage in the map this moris just to Echo what others have said uh on the wire
▶ 1:22:14line Maps which is what ntia was most primarily concerned about giving the statutory mandate to rely on them for the bead allocations um these are the the best maps we've ever had in the history of uh of federal mapping and they continue to get better with every round of um of challenge processes thank you you know in my last 36 seconds here's another one you know because I I was noticing uh about the 14 steps that uh that are here about trying to get uh everything
▶ 1:22:44that everyone has to do through ntia I asked question I was back in the district and I was at a meeting in one of my uh community colleges and they're training people out there to go out there and help deploy but with the one of the persons there asked told me something that I asked this question to ntia later did anybody consider that it takes 18 months to 24 months to get a bucket truck to even get somebody up on a poll and then how about getting people trained and so I think when we're looking at what we got to do out there uh we have a lot of
▶ 1:23:14work to get done but this has got to get done quickly and we just can't keep it up and Mr chairman I've overdone my time and I yield back thank you thanks gentlemen and the chair now recognizes Mr Ruiz for five minutes to ask your questions thank you Mr chairman today my colleagues on the other side of the aisle can seem to get their story straight on one hand they acknowledge the need to to coordinate Broadband programs which I agree with but then criticize the Broadband Equity act as in deployment or the bead programs
▶ 1:23:45timeline to claim President Biden has not acted on the digital divide uh but let's talk about the facts under the Biden Administration millions of Americans especially in Rural and tribal communities have gained access to high-speed internet these Investments are not handouts they are lifelines to education healthc care and Economic Opportunity through the tribal Broadband connectivity program the Biden Administration invested $3 billion towards expanding Broadband access
▶ 1:24:15on tribal lands in my district alone the Cabazon band of kawiya Indians and the saboba band of luiseno Indians received over 820,000 dollars and the Colorado River Indian tribe secured $28.4 million to connect 1,700 households to Reliable high-speed internet but my district is not the only one benefiting Nationwide the Biden Administration allocated over $276 million to 44 tribal communities across
▶ 1:24:4514 states with more projects underway these benefits don't just benefit the tribal Community these benefits uh benefit all the surrounding rural areas that are neighbors to these tribal communities uh Miss Morris how do federal Broadband Investments under the Biden Administration support Economic Development Education and healthc Care in tribal communities thank you for the question Congressman um and I appreciate you highlighting the
▶ 1:25:15incredible work that ntia has done to connect tribal communities along with other departments and agencies throughout the federal government and in coordination as you note um there's more work to be done um more more money available uh through the tribal Broadband program and more certainly more money available through um the bead program to help fill in where um those Investments have not yet occurred and I think that's sort of stepping back for a moment that's the the beauty of the way that these Federal programs work together and so how would it
▶ 1:25:45develop uh the education healthare and economic development in tribal lands well we know that these uh the tribal entities face an acute divide even more acute than many other areas and as I as I noted in my um oral testimony and in questions the access to high-speed affordable internet is a precursor for economic development access to education access to te te T Health it is the
▶ 1:26:16platform on which all of these key um uh resources live and without connectivity the digital divide becomes a human and uh basic resource divide yeah just as you said it enables tele medicine for remote families online learning for students and growth for small businesses and tribal entrepreneurs uh but expansion must respect tribal sovereignty and be done in true Partnerships with meaningful consultation last Congress I spoke out forcefully against Republican
▶ 1:26:46efforts in this committee to change permitting in a way that would cut tribes out of the process and if they wanted try to tackle permitting reform again this Congress uh I'd suggest they reach out across the aisle and work with us I'm game to work with anybody to help uh bridge this digital divide but rather than pushing forward the same old tired uh ideas uh Miss Morris can you discuss the Biden Administration efforts to streamline permitting
▶ 1:27:17and how tribal sovereignty was prioritized in the process I would just say Congressman that tribal sovereignty and tribal consultations are Bedrock to the ways in which ntia has engaged with with tribes whether in permitting or just the um subg granting process through these VAR competitive Grant making processes through these various Grant programs um it is something that I hope to see continue at Nia they have a tribal office that is made up entirely of folks who come from tribal communities and
▶ 1:27:47that I think has driven a genuine authentic commitment to um ensuring that tribal sovereignty is what have you all done to help streamline the um we have been uh working with other federal agencies to identify areas where um there are uh hurdles whether it's something as simple as a form can't be filed uh electronically it has to be filed uh in paper um to to getting more capacity which I think is truly the biggest hurdle here is getting the capacity in place in the permitting offices to
▶ 1:28:17process permits more um more quickly uh and more efficiently and um that I think has to be you know what's interesting I just had a meeting with the utility company uh everything has slowed down because of the mass layoffs the people the person that was working on their permitting for Wildfire prevention access and all that is gone and so it's going to take even longer to permit to to process these permitting but yet they're complaining about permitting time and they're making the problem worse thank you
▶ 1:28:47thank you yield back uh thank you for yielding uh next is represent V Rus from Florida I you five minutes thank you very much appreciate it Mr chairman all and I appreciate the the testimony today uh when I first started representing Citrus County in 2021 that's in Florida one of the top three needs was reliable cell phone uh internet services and that's probably true with a lot of the rural areas
▶ 1:29:18around the country in November of 2022 uh filled with the excitement for the anticipated Community investment the Citrus County Chronicle one of the newspapers there one of the major newspapers wrote two newspaper articles one article on the uh the promise that be the bead program provided to the county and a second article uh charging residents to review the Broadband
▶ 1:29:48maps and Report errors to ensure accurate funding availability for for the county sadly the slow execution of the bead program means that connectivity remains a top concern and the original hope in the program is turning uh to disappointment unfortunately meanwhile the states have been trying to navigate the process to get the necessary applications and approvals for participation in the
▶ 1:30:18program in October Florida's initial proposal volume two was approved by uh ntia starting another one-year clock for the state to submit a final proposal Mr SP uh spellmire uh your written testimony outlines some specific changes to enhance the effectiveness of the bead program would enacting these changes impact the progress that the states
▶ 1:30:48have already made under the current program structure or can they be uh folded and seamlessly I I would I would agree that they would uh they they would help they would improve the program the changes that I've outlined and uh I think it can be done let's say nearly seamlessly I think we're talking months not you let's call it weeks or months not months and years I think they can move quickly without uh
▶ 1:31:18tremendous uh disruption well that's encouraging okay during uh an nitia oversight Hearing in late 2023 I asked former assistant secretary Davidson about the prohibition on rate regulation within the beat program uh the iig ja included a clear prohibition on rate regulation and former Secretary of Commerce Gina randoo uh
▶ 1:31:49rearticulated that that uh ban at a senate hearing uh that same year Mr Davidson's response was the same the law was very clear that NTI could not regulate rates within beat but subsequently we heard that pressures and incentives were put on states that included rate regulation in their draft proposals this question is both for Mr Hal and
▶ 1:32:19Mr Donovan I still have some time left first Mr Donovan your written testimony briefly mentions that policy makers should avoid pitfalls like uh affordability plan conditions that could negatively impact bead participation can you expand on how rate regulation harms the marketplace thank you for the question so for particularly for Rural providers in these markets and at
▶ 1:32:49a time when Universal service fund is under threat that there are external pressures that rate regulation that these programs can push on the carriers that they they simply can't afford the business case to provide the service at certain levels without the resources through programs like USF that provide support to provide reasonably comparable services and rates for those in in R rural rural and urban areas and so it's really important that we don't have some of those requirements without the support necessary for rural carriers to
▶ 1:33:19comply very good uh Mr H you have anything to add you have anything to add please s uh I I agree with uh everything Mr Donovan just said there's a there's a there's a there's a bottom line impact um this is about this is about cost to deploy it's about density and everything that you layer on makes the case worse you want as policy
▶ 1:33:49makers maximum participation uh in this prog program you want us going to the states and attempting to be the providers selected and the more you layer on the more difficult you make it and that's what we're seeing play out uh across uh across the country today well thank you very much I appreciate it and I'll yeld back Mr chairman I thank gentleman from yielding uh next I uh will
▶ 1:34:19give five minutes uh questioning to representative Peters from California thank you Mr chairman uh you know when I came to Congress some time ago uh every single member that I talked to here Republican and Democrat wanted to do infrastructure uh and the Republicans in particular were um frustrated with the U inability to deploy rural Broadband that they were just disconnected and um one of my colleagues at the time she was on the transportation committee she said Scott we're going to do a trillion dollar
▶ 1:34:50infrastructure bill and I just laughed at her I said if we get two or three $300 million for for highways I think that'd be pretty good but lo and behold um in the last couple congresses we did we got a trillion dollar infrastructure Bill we got all this money for Rural broadband and I want just want to say that before I move on to um criticizing that that was quite an accomplishment for this place and um I know that that that vote was not necessarily bipartisan but even though Democrats controlled that vote uh it's not like we just invested
▶ 1:35:20in blue areas we invested in red areas and rural areas mostly represented by Republicans I thought it was a really good thing now I've sat in this seat and various places on other subcommittees and criticized the um Biden Administration for the red tape that we did not get around and I think that's legitimate question to ask um and um I'm very frustrated with uh how slowly uh we deployed some of these Investments with the money that we put in the bank
▶ 1:35:51mostly I talk about energy but here it is again Broadband um and Mr hail and Mr Donovan maybe you could tell me what you think specifically would be permitting obstacles to Bridging the digital divide and what we can do to from your perspective to see that we get shovels in the ground thank you Congressman well you know I think we've mentioned you you'll see it in our testimony different U different things that can definitely affect that ability again I mentioned environmentals
▶ 1:36:21um just the length of them those are important things to do but they just take so we don't just I wouldn't know what what you meant by environmentals is that NEPA or is that something else um it well I know specifically like with the reconnect program in USDA there's an environmental process at USDA that you have to go go through I haven't been through those a lot of our friends around the country have that's that's one of the big one it's not the not the process of going through it it's just how long it takes like we said with the Army Corps of Engineers
▶ 1:36:51uh we have sometimes with the railroad we have some we have some issues but um uh but Mr Donovan I think probably with his uh his knowledge of what's going on across I did notice by the way there's instances where there's 17 different agencies who need to be involved with project reviews so I I mean I know that's must be uh very frustrating but go ahead Mr dman yeah I think look it it's one it's it's making sure that there's the resources to process these that come up things like the Broadband incentives for communities act could help provide some those additional resources to process it
▶ 1:37:22but it's also you sticking to shot clocks that exist now to having them be actionable um so that they actually matter so that these operators have some certainty as they go through the process that if they do their part that the federal partners are going to be working with them on the permits um so that there's a collaborative try and get it done you know I hear from some members that they they hear from local on the ground that uh NEPA is used as a verb of you know if you try that I'm gonna NEPA you to death and you know that's that's not the right incentive for you have a sympathetic ear here on that I would just say this
▶ 1:37:52um I've I've never thought that just hiring more people was the make thing the way to make things go faster I think there are process reforms we need to make things go faster but when you fire people indiscriminately it's going to slow stuff down and what we're seeing out of Doge now is this incredibly scattershot approach um that is is supposedly to save money only 4% of the entire federal budget is the workforce um so you're not really going to save big money out of it but you really
▶ 1:38:22are going to make make uh processes like this um processes at the I at the IRS you're going to make it a lot more difficult and it's counterproductive um I hope my colleagues on the other side know of all the people here I really want to work to make these processes faster um I I just want I I think the way we're seeing this deployment of of cuts to probationary employees and I've seen this in the Navy I've seen it NIH I've seen it um in IRS
▶ 1:38:53is making it harder for Americans let's take a step back let's all agree we want to get rid of waste abuse let's all agree we want to infor um improve processes let's all agree we want to get rural Broadband done but the way this is happening is really counterproductive and I would just suggest that um we we have the power of the purse we also have the power to let um the president know what we're hearing and by the way I think technological solutions might be might be available here as well um and we
▶ 1:39:23have a technologist involved at Doge I would much like to see him much better rather see him involved in what he knows which is technology than what he doesn't know which is how to manage these agencies and I yield back I thank the gentleman for yielding and now I yeld five minutes from my colleague from Georgia representative Carter thank you Mr chairman and I thank my uh my colleague from California I'm I know he is sincere about permitting reform and I appreciate that very much but let's face it the past four years
▶ 1:39:53under the Biden Harris Administration has been nothing short of a disaster for Broadband deployment and expansion through America and it's because of the permitting process permitting delays have have resulted in in in the and halting the construction of bband infrastructure even in my own District of of Georgia in the first congressional district take for instance the Bureau of Land Management in US Forest Service frequently exceeding the 270-day deadline for reviewing Broadband
▶ 1:40:23permitting request on federal lands you know there was a study and listen to this now a study conducted by the US government accountability office found that about half of the permitting requests Pro processed by the Bureau of Land Management and the US forest service exceeded to 270 day deadline and that both agencies currently lack a method of alerting Staff appropriately when the deadline is approaching Mr spellmire let me ask you how did these lengthy reviews and delays impact Americans access
▶ 1:40:54to Reliable and high-speed internet well as I said uh earlier Congressman um you know I I've talked to Providers just last night who were telling me three years is a regular uh time to sit around and wait for some of this stuff to move through I was thinking we all live with shot clocks I got a shot clock in front of me right now you've got one in front of you uh we have uh deadlines every year I got a file on April 15th uh we just need that alone would make a huge
▶ 1:41:25difference you know you mentioned I believe in in your opening statement my my legislation the American Broadband deployment act that will streamline the Broadband permitting processes and it that's a bill that that focuses on standardizing regulations and and Expediting Federal and local approvals and improving coordination among agencies by cutting red tape and if we do this these reforms seek to these reforms will result in acceler ating Broadband deployment particularly in
▶ 1:41:55rural areas you know I'm a former mayor I will tell you you know it's it's also the locals that that sometimes hold this up and we need to address that as well but it it it obviously supports economic growth Mr Donovan how would this legislation the American Broadband Employment Act how would it impact um your members and the industry's efforts you're you're increasing certainty for The Operators as they're going through the process that they know that they get to the end of it there will be a decision you can proceed with your
▶ 1:42:25build or or here's what you need to fix but you're not sitting in limbo forever waiting as as my colleague said when the shot clock goes off you need somebody to blow the whistle to to make sure that that you know that's enforced Mr spellar yeah un certainty encourages investment and uncertainty discourages investment and that's what we're we just had a change in administration I've had so many companies come into my into my office and and and they want the same thing we need certainty we need to understand we need know what the future in order to invest
▶ 1:42:55we we've got to know what the future holds and what's going to be there and what's not going to be there and you know I was in business for 32 years and and I will tell you without certainty it's difficult to make business decisions and I think that's what we're up against as Mr hail said earlier you know he's he's depreciating his Investments over 15 18 20 30 years and it's the same thing for for my members and you it's really dangerous to make uh to ask providers to make uh commitments without that certainty
▶ 1:43:26if we were to have this permitting Reform Bill that um enacted that we're talking about here how soon would organizations like your members be able to start serving rural communities that are in need of broadband I am confident we could do that by uh September 1st of this year Mr Donan just add on it that that the timing of these reviews actually matters a whole lot in a lot of R America especially out west there's places where you can't start the review until a certain amount of the snow is gone from the ground takes time to process the the time and by the time you
▶ 1:43:57get the permit you may be past your build window and you can't get back out to those sites until the next summer I andan so that's where you the sequencing of this really matters if you want to make it from an exercise of going through the permitting to an exercise of deploying Broadband Mr chairman I would submit to you that as as many people come into our office and I don't care what sector of our economy you're talking about whether you're talking about technology whether you're talking about healthc care whether you're talking about energy it's all the same permitting regulations crushing
▶ 1:44:27us crushing us it needs to be reformed and I hope that we can get this bill passed so that we can have some reform here thank you Mr chairman I'll yield back I thank the gentleman for yielding now recognize representative Dingle from Michigan uh for five minutes of questions thank you Mr chair and thank you to all the witnesses for joining us Broadband is not a luxury it's an essential infrastructure that determines whether families businesses and communities can succeed in today's
▶ 1:44:57economy I strongly support continued investment in the Broadband Equity access and deployment feed program and other Broadband initiatives the as we all know it's bringing high-speed internet access to underserved areas by funding Broadband planning infrastructure deployment and adoption programs in all 56 States in US territories and we've made a lot of progress with States already imp menting be to expand access but let's be clear the work is far from
▶ 1:45:27done we've got to ensure that the federal government follows the law upholds affordability me measures for eligible customers and delivers on the promise of universal Broadband I remain committed to fighting for solutions that make Broadband accessible and affordable for every American but I am concerned that the Trump Administration and my colleagues across the aisle are actively working to delay the Broadband implementation to push changes that would directly
▶ 1:45:57benefit Ellen musk by funling billions of taxpayer dollars to his Starling service a blatant conflict of interest the Department of Commerce is withholding approvals that would otherwise have shovels in the grounds in States across country the bead program Demands a comprehensive efficient and collaborative approach we need to be thorough thoughtful and deliberate Michigan's Broadband office like many others across the country has worked extensively with stakeholders to
▶ 1:46:27craft a strategic long-term approach to B Band extens expansion however however concerns have emerged that Federal mandates or sweeping program changes at this late stage could force states to go back to square one and restart their selection processes leading to significant delays and state Broadband offices are voicing frustrations over recent delays in BE Implement ation with many pointing to a Slowdown in the approval process at ntia
▶ 1:46:58and onist these delays are slowing the efforts to get shovels in the ground and connect communities Miss Morris what steps could this Niti take to speed up the approval process for State be plant thank you congresswoman the easiest step would be just to push forward those the the three states who already have plans approved by ntaa and are just sitting in the queue essentially at nist um should push those through and allow the the
▶ 1:47:28the money to flow um the money to be released and the the shovels to go into the ground Michigan has led the way in leading beid uh responsibly but Federal interference could slow or even jeopardize the program my State's telling me this Miss Morris what are the risks if political interference continues to obstruct redwell Broadband programs so you know the biggest risk I see right right now is just timing and momentum states are as I've said at the one yard line and um they
▶ 1:47:59have spent Blood Sweat and Tears getting these plans drafted approved doing these uh sub-award cont uh uh subg granting processes all of which is required by the statute they've been meticulously working through all 14 steps laid out in the in in bead uh to to get to where they are now um any step backward one is uh going to undo it's going to be wasteful of all the work that they've already spent a waste of tax dollar money and the
▶ 1:48:29confusion that abounds about what that means next I think is exacerbating concerns with um within the states and I would also say there is a risk that the more that the more um fundamental changes that we make to the program and the more we try to rush a new plan forward the more we risk outcomes like Ard off which is now seeing a 37% default rate thank you Republicans are attempting to rewrite beads statuary requirements to weaken its focus on high-speed futureproof networks if successful these changes
▶ 1:48:59would funnel billions and taxpayer dollars to starlink despite its well documented shortcomings compared to fiber Broadband Mr H what would be the implications both today and in the long term of allowing starlink and other satellite providers broader access to bead funding are there any drawbacks to Consumers and businesses by prioritizing satellite broadband over Fiber Technologies yeah I think I think you all know I'm a fiber fan that's what we're building there is
▶ 1:49:29there is no technology that can match what we can provide for fiber uh if we're talking longterm um I think it's the best solution in many cases that being said I think you hear a common chorus that we need to use every tool to reach every American if that's our goal so um you know the best thing to do is to absolutely take a long long term view of what that would mean and I think that's best done at the state level they know their locations better they know their
▶ 1:50:00unique circumstances they know what technologies will work they don't know what that'll be until they see applications and proposals that come forward that may include fiber so um I think you know we need to use every tool in the Box to get to every American and it's going to be a different business Case by state so giving States the flexibility to do that exercise to figure out best longterm for citizens in that State's the best approach thank you now yield back Mr chair the Gent lady yields the chair not
▶ 1:50:30now recognizes a gentleman from Florida Dr Dunn thank you very much Mr chairman Americans do indeed have every form of Technology their figure tips for Broadband deployment and related applications including fiber optic fixed wireless mobile and robust Satellite Systems all are important to Florida thank you for those comments Mr Hal uh historically America has done a stellar job and building out telecommunications infrastructure and much of this was done before commercial entities received any government
▶ 1:51:00grants to provide that service now we've thrown $42 billion in broadband and taxpayer money and uh we said we need to solve this problem we haven't laid an inch of fiber yet not one single additional customer has been served so in fact I drive around in my district in a pure with a purely commercial satellite l in my car because reliable cell service is absent in half of my district and I know there's plenty of healthy competition
▶ 1:51:30in our Market to to fix that uh Mr spm's testimony on evolving technology the market was encouraging your members are providing fiber pipes to Data Centers cell towers to offer all kinds of service bundles and Broadband prices have fallen from uh 87 cents per megabyte per second uh in 2015 to Mere 16 cents for comparable service last year yet millions of Americans still lack any reliable
▶ 1:52:01access to broadband at a reliable speed a useful speed I should say we spent 65 billion in the INF infrastructure investment and jobs act the iig ja to support Broadband activities we have nothing to show for we have a poster that shows how much money was put into a number of these different programs now these aren't all of the programs programs this is these are just some of the bigger ones uh in fact they're over 130 programs somebody made reference to that earlier uh
▶ 1:52:31and you know we have that much money sosing around in the system you wonder if there's a bit of a boond doggle g rush going on here most concerning is that the Biden Administration allocated infrastructure AA money the largest appropriation date without any accounting for other Broadband programs already existing and this is I think it illustrates in some ways how complex the Broadband ecosystem actually is between the big isps the rural co-ops cable companies
▶ 1:53:02Etc hard to serve areas still don't get the Bri the Broadband on a priority basis and the truth of the matter is that connecting underserved areas can be difficult and not economically viable uh so you know that's is true in Florida my rural District as it is in Latin America Asia Africa Etc satellite Broadband is Affordable it can be deployed today it can be you know offered at much lower Pros price than try to drag a fiber to every single Farm in my district
▶ 1:53:32and these are you know remote areas another Advantage is resilience satellites are not vulnerable to having a wayward Chinese ship drag an anchor across their fiber in the bottom of the ocean M Miss Morris um I understand ntia uh finally amended the implementation of the requirements to allow all alternate technology to fiber for locations that are difficult to reach by fiber I guess that's better late than never I'm supportive of the Chairman's bill which
▶ 1:54:02I co-sponsored reform the bead program allowing full access for alternative Technologies you know it is in a word technology agnostic and I'm okay with that I think that's the way we should be Mr hail's comments I think underscore that the all technology eligible section in a speed for bead Bill allows an eligible entity to to deploy reliable broadband service through any technology that meets the performance criteria now
▶ 1:54:33question M Morris is how did the bid nitia and the Department of Commerce plan to ensure that areas that needed Broadband but you obviously satellite uh was the was the obvious answer you know you can't drag a fiber everywhere how how how in the last administration were you planning to adust those people I'm sorry I couldn't hear the last part of the question well I S you know your bead program by regulation by edict did not include anything other than fiber in the last
▶ 1:55:03Administration and there's places in the world think Pacific island nations it just makes sense sure Congressman thank you for the question the ntia um within the bead program contemp did contemplate a wide variety of um uh types of networks to be participants in the program and as you you note the alternative technology guidance that came out in early um January of this year further clarified the ways in which satellite companies in particular along with other alternative Technologies
▶ 1:55:33could um could participate and were expected to participate in the um we see ntia has has historically seen um that the primary goal is to push fiber as far as possible and economically feasible um but certainly to support other technologies that makes sense in the areas where they make sense so my time has expired Rob would said we ought to be just technology agnostic tomorrow some right person is going to invent something we haven't thought of today
▶ 1:56:03with that Mr chairman are you back the gentleman yields the chair now recognizes Miss Baragon from California for her five minutes uh thank you Mr chairman and I want to thank the witnesses for being here today um it's a little challenging to sit in this hearing and uh hear my Republican criticize something they didn't even support um we're talking about delays the beat program is even there
▶ 1:56:33as an option because of the infrastructure bill because the last the first time this president was there promised an infrastructure Bill and couldn't get it done and house Democrats were able to get it done and now um they have no problem when there's an infrastructure Pro uh project approved going on their television set and trying to take credit for it and and now uh house Democrats have invested in Broadband now one of one of my colleagues
▶ 1:57:04across the a just said we already have 15 programs I don't know why we need another one like why don't we just have one Miss Morris is there a benefit to the bead program why can't it just be why can't that money just be somewhere else or why why do we only need would we only need one so the the way there it's right to acknowledge that there are variety of funding programs with a variety of purposes that are funding uh
▶ 1:57:34high-speed internet Investments throughout the country all with different goals some with specific rural goals some with tribal goals some with digital Equity goals um and they are all working in concert together and I will say that in my time at ntia I saw um some of the mo the the closest and most um integrated partnership across the federal agencies and departments that are tasked with this money to make sure that the money was spent wisely efficiently and that programs like the bead program which Congress recognized would take a long time
▶ 1:58:04to implement could be the cleanup batter when it comes to um finally connecting the last remaining locations that had not been served so you know in on some ways we're at the the the mercy of the way Congress passed the laws and the way that they're directed to different agencies and Partnerships but in other way it creates a lot of opport opportunity for agencies and departments to work together to leverage these different sources of money and to do what we've never been able to do and have at this moment the opportunity do to do which is to finally close the digital
▶ 1:58:34divide once and for all and is it my understanding that the state of Louisiana is on the doorstep of actually being able to get this doll these dollars and put it into effect more than on the doorstep their final proposal has already been approved it is sitting with nist I don't know if there's employees to to um remove remove the special award condition that's that's holding it up but um that's the the step that needs to be taken yeah so it sounds to me like not only is this a program critically needed but even States like Louisiana
▶ 1:59:05felt it's needed and is on the verge or could be on the verge if not if we're not for this Administration putting a hold and delaying of this program and it's no surprise to me that Republicans want to weaken the protections around be to funnel taxpayer money to Elon Musk we we've already seen this scheme play out with the FAA you know last week Elon Musk falsely claimed on on X that Verizon fell to meet the conditions of its $2.4 million FAA contract to upgrade Air Traffic Control Systems
▶ 1:59:35according to press reports the FAA is now considering handing the contract over to mus Starling this moves comes merely weeks after mus Doge accessed the FAA sensitive information and systems there's a word for this it's corruption Miss moris given Elon Musk influence over federal agencies that regulate his businesses how can we ensure that bead funding is put toward actual Broadband infrastructure as currently planned rather than diverted to any one individual
▶ 2:00:05or company so there's a couple of ways in which I'll answer your question congresswoman I think it's critically important to look to the states that have been doing this work for the past three years um and ask them what they need what they want to do what they've planned to do and to the extent they are prepared to move forward to either the next phase in the 14-step process or to the Finish Line uh or the end zone uh given an earlier metaphor that we give them the tools to do it um second I think Congress has an important
▶ 2:00:35role to play in making sure that the bead money um which has been teed up to be spent very soon is spent wisely and carefully um and doesn't fall into the same traps that we've seen time and a time again in in the over the years in inves in Broadband infrastructure in the space c again Ard off thank you I I also understand that our chair's own home state of North Carolina is projected to create 6,100 jobs that would provide vital economic opportunities
▶ 2:01:05for middle- class and Working Families but these jobs are stuck in limbo and with today's announcement that there's going to be a review of the program that's only going to cause further delays I don't understand why we don't have more Champions trying to make sure this program continues and stays on schedule as is thank you I back thank you for yielding the chair now represent uh uh recognizes representative joy for five minutes of questioning thank you Mr chairman and thanks for our Witnesses for testifying here today in Pennsylvania's 13th congressional
▶ 2:01:36district over 25,000 households lack connection to high-speed internet since joining this subcommittee my priority has been clear connect each and every one of these households to Affordable reliable highspeed internet repeatedly I've heard from providers and my colleagues about the critical role of the bead program I share that goal yet despite the last administration's pumping over $40 billion into the program
▶ 2:02:07not one shovel has been put into the ground why is that the regulatory red tape that the Biden Administration has tied to the funding is the answer back home in Pennsylvania the Biden Administration self- sabot self- sabotage is on Full display the Biden Administration bead wage requirements have in fact tied the hands of the very agency tasked with implementing the bead program in the Commonwealth by forcing applicants to
▶ 2:02:37pay workers at the highly skilled electric lineman rate of almost $90 an hour versus the traditional rate of $6 an hour paid to Telecom telecommunications Tech technicians if you were forcing program participants to pay a 50% premium in labor and overhead to even be eligible for the B dollars you've already in effect limited the universe of applicants and eliminated smaller providers and contractors
▶ 2:03:08from the bidding process smaller providers and contractors that often reach into Rural America where I represent Mr spellmire in your written testimony you offer an example of ACA connect member who applied for bead funding and reported that compliance with the program's requirements would carry a 70% increase in per mile deployment costs above those comparable project funded through the department of treasury's capital project funds so
▶ 2:03:38we recognize that how can we say that the bead system is helping lower the cost of broadband deployment in Rural America when the government itself is adding so many additional expenses to the deployment Congressman thank you for your leadership on this issue um I I think I would acknowledge that to date uh um it hasn't helped because dollars haven't flowed um Pennsylvania unfortunately
▶ 2:04:08is the poster child uh worst case of of how the the requirements have been layered on and uh adopted proposed by the state and adopted by ntia um the good news is I do think we can as I've said several times here we can fix this we can we I don't think it's a debate between do nothing do everything I I think or start over um I I think a quick set of waivers do you feel we
▶ 2:04:38can fix this by passing chairman Hudson's legislation is this a pathway to success uh I do uh we support the legislation thank you I as well Mr hail what has been the immediate impact on providers who are looking to or currently operate in the state's bead programs that have prevailing wage um it just hurts the business case again these are market failure areas you're really needing to have a great business case to serve them and prevailing
▶ 2:05:09wage uh hurts that and I'm I'm going to tell you you know wages jumped after covid and if this money starts rolling there's not enough contractors and workforce out there those wages are going to go up anyway to be honest so uh I think the prevailing wagees is unnecessary so you're saying that the market should determine the wage the market will it'll thank you I I agree enough there Mr spellmire what reforms can we make to ensure that states are following and adopting any potential labor reforms to the point that
▶ 2:05:39we're discussing that's a that's a great question and to be honest I haven't given it the level of thought that I wish I could have in advance uh I I think I think um I think there's an ntia controls the money n's got the money they can make sure that the uh States uh follow however ntia interprets it and that would be a function of the the current Commerce
▶ 2:06:09Department to to to make sure that it does get followed and if it doesn't the money doesn't flow there would be other problems if the money didn't flow but but I I think States will enforce the uh Provisions thank you I have one goal and that is to connect those households in my Pennsylvania District to the internet and if there is a common sense solution that can eliminate the hurdles that stand in the way of achieving that goal then we owe it to our constituents and to the parents of my district
▶ 2:06:40who take their kids to the sheets convenience store so they can log on to do their homework because that's where there is Wi-Fi we owe it to all of America to get shovels in the ground we need to get America connected we need to allow the farmers the Educators and all of those involved to have the connectivity that they deserve thank you Mr chairman and I yield back I thank the gentleman for yielding now I uh the chair record now is representative Carter from Louisiana
▶ 2:07:10thank you Mr chairman and what a perfect segue um to hear my colleague see that we need to have shovels in the ground wow Louisiana is just a ston throw away from from shovels in the ground Louisiana is a perfect example and demonstrative of this being a bipartisan issue and not one that is partisan the program started under the Biden Administration started implementation under the Democratic governor John Bell Edwards and has since
▶ 2:07:40been moving with warp speed under the Republican Governor Jeff Landry and I will quote Jeff Landry said that the be program is a generation investment that will create thousands of jobs drives billions in and economic growth and transforms Louisiana communities in all 64 parishes ready to have shovels in the ground however since Trump Administration took office just just a week
▶ 2:08:11after Louisiana received its final approval the Commerce Committee has withheld final funding approving that would otherwise put shovels in the ground and we would be moving forward yet we find a way to take something that is clearly bipartisan and somehow want to make it partisan take something that Louisiana has demonstrated our ability to work together Republican and Democrat to have a smooth transition to bring fiber to all parts
▶ 2:08:41of our state this is uh one of those matters that we have such a clear example of how it's working so why do we want to stop it it's moving why do we want to stop it a question for Miss Mars um Miss marus can you tell us about the time detail and planning that goes into creating the state's bead deployment plan and what happens if this Administration starts pulling threads
▶ 2:09:12uh that make the the fabric of these plans and awards specifically for States like Louisiana who's ready to go thank you congressman as I've referenced there is a very detailed process laid out in the statute that states must follow in order to get their full funding essentially unlocked and approved and ready to go um each of those steps uh has different equities some of them um are outside of the state less out inside the state's control like
▶ 2:09:42the the mapping process which uh took a year for the fcc's maps to to um initial map to be released um others are a factor of you know the unique characteristics of the state there's um you know States will draft their plans they will submit them for approval um there's usually back and forth to try to help get to a a workable place um within the constructs of the statute uh for the the bead implementation and states
▶ 2:10:12have navigated all of that they have spent hours upon hours so given that we've done all that and we were literally ready to put uh shovels into the ground any delay that stops and starts over will likely cost more money not less will likely cost more money and if we're talking about something like reclassifying um satellite or other services as reliable Broadband States could not only have to do redo their entire bids but it raises questions about whether or not locations are even available
▶ 2:10:42to be served under this so we would actually go backwards thank you um Mr hail based on your experience managing small fiber-based companies what challenges do the internet service Prov Riders and contractors have receed that have received reward rewards in Louisiana to this moment what what would that do to them we you well I I just say in general that I've got I got a minute T so say we think there needs to be a recalibration not a restructure and that should happen quickly to move forward for providers that recalibration is
▶ 2:11:12there a risk that we go backwards it it there is risk that you go backwards but you know you it may cost a little bit more but the final result could be improved so that's the recalibration I'm talking about but it should happen very quickly especially in Louisiana Mr Donovan how would you how would the affect how would this affect your company's efforts to connect underserved communities if bead funding was eliminated I'm sorry sorry if it was eliminated yeah be removing a significant investment to connect everyone using
▶ 2:11:43fiber as and I think I don't know how we got this far without giving credit to the Louisiana plan of the credit of the gumbo plan which is a great name for it thank you uh but of of using that of using fiber of using fixed Wireless of using satellite where it's necessary but using all those tools and Louisiana is leading the way and very proud of that fact and I'm very proud of the fact that every single one of our congressional districts two Democrat and four Republicans will benefit greatly particular in these rural areas everyone wins and I will tell you this program
▶ 2:12:13has been heralded by Republicans and Democrats in my state and I urge us to not go backwards in making this partisan when in fact is shouldn't be Mr chairman I yield gentleman for yielding votes have been called but we're going to go to Mr fluger uh and the chair recognize Mr fluger for five minutes questioning and then we will go to votes thank you Mr chair uh Mr Donovan I want to say thank you for um your help and the support in last uh last year's Congress uh on the supporting National Security
▶ 2:12:43with Spectrum act um really appreciate uh what y'all were able to do uh I'll quickly go and and I know several of my colleagues have talked about this uh but Mr spellmire we're talking about you know for 1,200 days not a single dollar of the 42 plus billion has been spent on broadband deployment um and you know I look at part of the reason for this delay which was the Biden administration's efforts to force states to adopt Union uh Workforce agreements climate change Provisions etc etc etc and in Texas
▶ 2:13:14um in the bead plan the prevailing wage requirement which would increase labor cost by 20 to 30% for Rural internet service providers and prevent them from participating in the program so my question is if one of my constituents wanted to know if the nitia required Texas to include prevailing wage requirements or climate assessments that could serve as barriers to deployment where could they see that information or where I mean what what do they how how do they know it's a very specific question but any I I am not
▶ 2:13:44as fluent with the Texas uh negotiations that that have gone on and perhaps Miss Morris can can allude to that a little bit but um I would think that would be in the inside the plan itself as it sits out there today um a number of states have uh agreed to move forward on prevailing wage proposals that that we think have done nothing but delay and and raise the cost and I think that's kind of the the the
▶ 2:14:14expected reply is that we we just don't know in a lot of these uh what a lot of these states are doing and not just state to state but also just the plan is complex and uh there's a lack of accountability um and you I want to highlight that have a a Broadband Bill excuse me a Broadband buildout accountability act that would help us with these kinds of things because that's a lot of money 42 a.
▶ 2:14:37half billion dollars uh and to not have accountability for what is happening besides just planning but it's actually not actually it's not building out and not helping rural Texas um that's it's um you know what I'm going to yield at this point in time to uh we said we' split the time here for votes to Mr fure thank you congressman fluger and and uh I'm going to I'm going to deviate here uh because of the conversation permitting is
▶ 2:15:07clearly a huge massive issue and in my state we have a tremendous amount of federal lands and so uh that even makes it more complex but I've got a technology question that as far as I know hasn't been raised and frankly but I should probably know the answer to this but if I don't chances are some other people don't either but I know we've have got to have certain backbone requirements to handle bandwidth and all that type of stuff I'll ask Mr Donovan technology-wise I with all those struggles we have with permitting
▶ 2:15:38across terrestrial sites where's the the uh where does Wireless and satellite fit and how far away is the technology where some of that can be infrastructural backbone so both both satellite and wre fixed Wireless technologies have have come a long way in recent years and so that's where especially with permitting fixed Wireless is a really important tool here where if you can bring fiber to the tower you can then serve the the surrounding areas of that with a fixed Wireless solution to provide that
▶ 2:16:08the speeds that are are in many instances comparable but you're able to get the speed get those speeds and get those service to to your constituents much faster and and especially in States like yours where there's some challenging Geographic Terrain there's some places that you're never going to string fiber and and that's where Wireless is an important tool to be able to serve everyone Mr spellmire in the last minute I know you've talked about this but I'll just uh try to use this and say your input especially on permitting needs for federal land
▶ 2:16:39access yes we have we have members uh that serve your state and a number of similarly situated States uh it's a it's a huge issue I was talking this morning with a former member of this committee Senator Curtis about uh the the impact in in Utah and the need to fix it there anything we can do to speed that long along is huge uh as Mr Donovan uh just alluded to and I think he would agree even on the wireless side permitting reform is is still needed there too we we've we've got to fix
▶ 2:17:09this there are a variety of technologies that can can serve but they all face to one degree or another permitting challenges that that have to be uh addressed as I talked about shot clocks before well speaking of shot clocks mine is up Mr chairman I yield back I yield to the congressman I thank the gentleman for yielding and I AP my apologies to our panel we have to go to votes I remind the members that uh we have been reminded we got 20 minutes so we
▶ 2:17:39got to we got to get down there and uh we will reconvene uh maximum 15 minutes after the last vote but if you can get back here quickly we'll we'll get started thank you recess
▶ 2:19:49for e
▶ 3:07:16e e
▶ 3:08:15the hearing will be called to order uh the chair now recognizes Miss kamak of Florida for five minutes for questions thank you madam chairwoman for holding this important hearing today and thank you very much to our Witnesses for hanging in there with us it's always a fun experience when uh votes get called in the middle of a hearing and uh I I'm I'm sure you appreciated the the reprieve um so I know yes Mr spellmire I can see you were
▶ 3:08:45very appreciative of of the the break so as my colleagues have stated today we are all collectively very concerned about the Broadband the really the spectrum of the Broadband programs that are spread across the federal government now according to GAO over 130 programs at 15 different agencies now I know that many of them have different standards and eligibility criteria too and at the very least we can make sure that they have the same requirements now I tried to do this for the USDA
▶ 3:09:15reconnect program last Congress with my rural internet Improvement act Mr spellmire Mr hail how should Congress try to standardize requirements for the different Broadband programs across the agencies um I would love to hear your feedback on this and I'll start with you Mr spellmire uh thank you congresswoman uh certainly the the GAO I think it was a GAO report that you just referenced was was quite eye openening even to those of us in the in the industry who are familiar
▶ 3:09:46with the programs to see the all detailed uh there is um there is a need for for standardization and streamlining I think part of my answer to that would be uh conduct a review uh do it through regular order here in the committee figure out what the the programs are Congress has a habit of you know throwing one program on over here and then somebody else throws it over there and pretty soon you've got 113 programs um I think it would be
▶ 3:10:16uh useful to uh streamline and combine some of those some of them are no longer I think completely relevant right uh so consolidation my message earlier was let's get let's get uh let's let's streamline the bead program and get back to work putting uh fiber in the ground and and using the other technologies that are out there excellent thank you Mr hail yeah I would I would agree that they should be streamlined it would be helpful to have
▶ 3:10:46a a common definition a wellth thought out definition of what Broadband needs are currently as well as well into the future we talked about the programs a little bit earlier um and just to you know just to clarify the the USF is not appropriated that is the essential program to make sure that uh networks are built sustained and remain affordable and then of course the bead programs the grant programs come along for a greater Capital infusion when you still got market failure areas
▶ 3:11:17where USF doesn't work so a combinate you know the USF program would be the best place to establish those um guidelines those standards and you know if USDA has some projects which have been very helpful in um uh closing the digital divide if they could be the same standards that would be perfect thank you and Mr Donan what Wireless I think it's important to rec with those different programs that there is an inherent difference in fixed connectivity and mobile
▶ 3:11:47and and Americans want to have access at home but also on their devices as you're as you're not connected to a fixed connection and so making sure that you don't lump those different programs together and you need the both both that you need both of them to have those two different uses and purposes and as as my colleague mentioned of looking at that also the difference of what is a deployment program versus what is a program to sustain that employment because ultimately there there's there's no futureproof technology of any kind if there isn't sustained involvement insane investment
▶ 3:12:17to keep it going okay perfect um Mr spell ntia added some pretty honorous labor requirements um to be now do you think that these requirements make it easier or harder to find skilled workers needed to build these Broadband networks well there is no doubt in my mind that they make it significantly more difficult to find skilled workers um and I should have added in response to your first question I think the other thing you have to sort out is um what a agency is going to
▶ 3:12:48administer what program that's a real challenge well and kind of going back to what you said Mr Donovan would you agree that the requirements that we're trying to create some uniformity for across the Broadband program should apply and have some maybe synchronicity isn't the right word but there should be some sort of mirror in the wireless realm yes and and it should be based on what consumers are actually expecting to receive it's a big problem we have in in
▶ 3:13:18the current 5G fund at the FCC is that there's an artificially low speed threshold that means that you're not going to say it's like dialup speed we could use your help fixing that before the program moves forward uh well on behalf of basically every American in the United States we will do everything possible to uh increase the upload download speeds uh that are so desperately needed to be updated so thank you all so much for your time my time has expired I yield the chair now recognized is Mr Menendez from
▶ 3:13:48New Jersey for five minutes for questions thank you chairman access to Reliable high-speed internet is as integral to educational and job success as access to textbooks or transportations connectivity allows students to learn entrepreneurs to run small businesses workers to access training and job opportunities and for families to connect but Republicans left Working Families in the Lurch last year after they refused to extend the affordable connectivity program a Lifeline that conected people across the country
▶ 3:14:18with internet services including 338,000 families in New Jersey thankfully the FCC stepped up after the ACP labs to modernize the schools and libraries programs of the universal service fund also known as eate to help our constituents get connected at home through hotspot lending this service is transformative learning isn't one siiz fits all and students need access to digital tools outside of traditional working hours at schools and libraries extending access to broadband at
▶ 3:14:48home can change and has changed lives and as classes in skill building increasingly rely on virtual classrooms and digital textbooks students and teachers need to be connected at home to keep from falling behind without Broadband at home completing homework is nearly impossible forcing students to fast food restaurants or library parking lots after hours just to get a Wi-Fi signal thankfully with hotpots it doesn't have to be this way anymore in my district right now schools and libraries like the Gutenberg school district and Elizabeth
▶ 3:15:19public library system are taking advantage of this new service provided through e the erap program by applying for hotspots and service to help families in New Jersey's 8th congressional district and 1,200 schools and libraries across the country are currently applying for close to 1 million hotspots that's 1 million families that could have access to a brighter future because of this Innovative modernization of the e- ra program unfortunately like some of the other groundbreaking Broadband programs we've discussed today
▶ 3:15:49this program is under Threat by Republicans who have introduced cras and boob Chambers to repeal this FCC action and prevent libraries and schools from getting access to these hotpots and I appreciate earlier my colleague Mr Joyce uh referring to students in his district having to use parking lots for to access Wi-Fi uh I would hate to think and I do hate to think of the kids in his district sitting at Sheets in the evenings to do homework as I will want that for my constituents or any of my colleagues
▶ 3:16:20constituents luckily we've seen those cases plummet because of the fcc's Hotpot lending program so I hope he and all of my colleagues will join me in fighting against efforts to pass a CRA that would undo that progress it's difficult to imagine why they would want to set our students back to the days of sitting for hours in parking lots just to keep up in school but that is exactly what they are trying to do this would make their own constituents worse off Miss Morris you've spoken extensively about how our Broadband
▶ 3:16:50programs are designed to work together to address aspects of the digital divide can you explain how the fcc's modernization of the eay program helps keep families connected at home thank you Congressman um yeah I this this seems to me to be a no-brainer um particularly you know while we're waiting to see bead through the Finish Line um when hopefully all the homes in in your district will be connected to a high affordable high-capacity connection um hotspots are an incredibly useful tool to provide connectivity
▶ 3:17:20for students and um I I would hope that um that it remains um a program that could be viable for some time I would also note that the CRA is is is a pretty blunt tool um and has a preclusive effect from agencies um uh implementing a similar rule down the road and um you know in this case I think the perlus of effect of getting kids helped with their homework connectivity uh is a particularly um sharp one yeah I agree and especially with
▶ 3:17:50the learning loss that people are already challenged with after covid we shouldn't make it an additional burden to access um the the educational opportunities that exist but are only accessible through a Hots spot so agree with you there if Congressional Republicans successfully end this FCC program to support hotspot lending what would be the impact on students and Library patrons in districts like mine well it would just make it much hard for students um to do their homework it would put the burden on libraries to carry
▶ 3:18:21um excuse me that water and um would likely have a dramatic effect on the success of these students in their schools I'll give you a second uh on that um and I appreciate your answer and speaking of water please have a sip take care um hotspot lending should not be partisan we can all agree that kids shouldn't be forced to sit in the fast food parking lots late at night to be able to do their homework in fact schools and libraries from 46 states have submitted hotspot applications so this is applicable across the country
▶ 3:18:51in red and blue districts to help families across the country I urge my colleagues on the other side of the aisle to recognize the tremendous benefits of this program and to abandon e any efforts to destroy it thank you with that I yield back thank you Mr Menendez I now recognize myself for five minutes for the purpose of questions uh thank you to the witnesses um back in the Indiana State Senate I worked on broadband legislation trying to get access to unserved areas
▶ 3:19:22uh as noted in some of your testimonies we have seen overbuilding uh and um technologies that are picking winners and losers uh in some of the these funding opportunities and one of the things that I wanted to do is make sure that uh any Broadband that was deployed went to areas that had zero access first and then we would build to uh toward higher speeds I happen to serve in the Indiana State Senate in one of the most
▶ 3:19:52unserved areas of the state of Indiana for access to broadband uh leaving my part of the state at an extreme disadvantage when it comes to economic opportunities Precision agriculture telea health and education small businesses you name it we were at a disadvantage I was once speaking to a high school group and I asked this High School in my district if they knew where the most unserved area of the state was for Broadband access and a student raised his hand and said my
▶ 3:20:22backyard and it was just that uh in fact when be when the notice of funding opportunity came out I sent a letter to both uh ntia and our governor in September of 2023 sharing my concerns with uh the funding opportunity and a particular concern uh were the mandates that I thought could delay and and complicate deployment of funds which I understand uh we have seen so I would ask um Mr spellmire
▶ 3:20:52um how much Broadband funding after bead passed three years ago how much Broadband funding has been distributed to date under the bead program my understanding is that answer is zero zero um Mr Donovan how much bead funding has been or how much Broadband funding has been distributed to date so it's been distributed to the is my understanding but has not yet gone to Providers to provide service so the very thing that that many of you raised
▶ 3:21:22concerns about and that I rais concerns about seems to be uh part of at least in part of the problem another concern of mine was the uh notice of funding opportunities General prohibition on nonfiber projects it's explicitly in conflict with congress's intent for the funding to be technology neutral and it would likely impact deployment State flexibility and prioritization consistent with the law should be protected and it included flexibility with the workforce necessary to
▶ 3:21:52execute the projects which the funding opportunity uh did not provide um making sure that internet access is available to unserved communities first is remains a top priority of mine as we work to try to figure out uh some of these uh issues including the great number of different Broadband programs we have throughout the federal government and streamlining that so we can make sure that Broadband resources are utilized to get to these unserved areas and make sure that that
▶ 3:22:23uh citizens in the unserved areas not only are connected but are connected at the highest speeds possible to compete globally uh in the economy so I I appreciate uh your written testimony I do have a couple of questions with the remaining time coverage for our Broadband Maps seems to be a real issue particularly for precision Agriculture and agriculture land our coverage is lacking uh do you think it's possible we can improve uh the coverage maps to better show what
▶ 3:22:53areas uh are agricultural and what's necessary to build it out and I will put that question to Mr Donovan we have to right if we move forward these programs with Ms that show that there's overstated coverage especially over agricultural Ranch lands then you're going to continue to remain unserved and unavailable to use the latest Technologies so um Mr Donovan I want to talk about the 5G fund I understand the CCA has concerned with how the Biden FCC structured the program you outlined some of that in your testimony you say the way the program is structured
▶ 3:23:23could unintentionally lead to mobile con connectivity in rural areas uh that would be worse than what is currently available what do you mean by that so as as it's currently structured there's some places that have service today because of of USF support where USF has been invested to it but if the speed thresholds for what can qualify for the program are artificially set then places that only have service today because of USF will be ineligible for the 5G fund so you'll P plow all the money into some super
▶ 3:23:53expensive sites in the most remote areas where you maybe satellite is the best way to serve it meanwhile the places that rely on USF to stay online today are going to go dark this will lead to you know Rusty towers and less service yeah thank you with the remaining time I have Mr spell Meer uh is it your impression that the labor requirements in bead have have impacted deployment unquestionably thank thank you uh for the U I'd like to submit for the record uh both letters that I sent not only to our governor but also to the
▶ 3:24:23ntia uh submit those letters to the record without objection thank you uh I'll now recognize Miss mclen of Virginia for five minutes for the purpose of questions um thank you madam chair um the good news here is there are a lot of areas where there is universal agreement uh we agree that Universal Broadband is as necessary today as universal electrification was in the beginning in the 30s and Universal service for the
▶ 3:24:53old landline telephone was Broadband has basically replaced our landline telephones but it also ensures that uh we can have the most upto-date and highest technology in a wide variety of places we agree that every Community should have access to Affordable reliable high-speed internet services that can adapt to ever increasing demand and that we don't want our Rural and lowincome communities to get the short end of the stick for reliability
▶ 3:25:24and affordability um but building a Broadband network is complicated it's more complicated I would argue than building highways and bridges and Roads because the Broadband Network can become obsolete that much more quickly so let's talk about the reason for the be delays we hear from our Republican colleagues that they're worried about waste and we agree
▶ 3:25:55and so we wanted to make sure that Federal funding through the bead program was used to build out unserved areas I've heard that a couple of times it's not permitting delays that have caused the delay up to now because you don't get a permit until you know where you're putting your equipment and you don't know where you're putting your equipment until you know who's unserved so that was why the ACT said FCC build a map that will be the starting point for how money
▶ 3:26:25is allocated to who and where but the FCC doesn't know who served they don't know where the the networks are and they don't know what's in the pipeline to be built so they needed to get that information from the Broadband providers that's a complicated process I don't have time to go into but let's just say that took a long time time it took a year then because we want to make sure we're not going to overbuild and waste money
▶ 3:26:56there was a challenge process led by the state that took six months because we as we did with the communications the Telecommunications infrastructure we left to the states the primary responsibility of figuring out how to allocate this money that's states were all over the map some states like Virginia had Broadband offices had programs that were already giving out grants
▶ 3:27:26to build networks other states had to start from scratch states are public entities and when they take public actions they have to follow open record laws open meeting laws so that they can get input from the public so that the public can be sure what the requirements are going to be in whatever plan they ultimately adopt that takes time public notice Etc that was a six-month process just to do the challenge process but at the same time before they
▶ 3:27:56could get to the challenge process they've got to build up the Broadband capacity bring the stakeholders together etc etc so that's what has happened in the first year and a half once you get the map then you build your plan once you know who needs the broadband then you build the plan for how to get it there that's what's been happening in the rest of the time not permitting because there's nothing to get a permit for yet
▶ 3:28:27now there's been a lot of discussion about should this be technology neutral the ACT says that whatever federal dollars are spent on needs to be scalable and reliable scalable means it needs to meet demand what we're talking about are the up speed and download up upload speeds and download speeds of everything from Health Care infrastructure and information to the in infrastructure for a manufacturing
▶ 3:28:57plant to my son playing video games on his phone all happening at the same time so you need to make sure you have a network reliable and sustainable no matter what fiber in most cases meets that need more than in other cases and so what the ACT does is say whatever the technology is we want you to choose the one that's the most reliable that may be one thing today
▶ 3:29:28but build a plan that's future proof so we can build a network that's future proof so that when we spend Federal money we don't waste it on something that is obsolete tomorrow now I don't have a question I just want to make sure that we all understand the starting point point of what we are and are not talking about when we decide what needs what changes need to be made to be and what the long-term implications will be and I back the gentleman
▶ 3:29:59from South Carolina Mr Fry is recognized for five minutes for questions thank you madam chair and thank you to all our Witnesses for being here actually have really enjoyed the testimony I know we've been bouncing around and we were on the floor but uh it's been a really good as a new member of the committee to hear it um Broadband is is critical it's absolutely essential to our students our Healthcare Providers our rural communities we've got some uh folks uh that are here with me constituents of mine from some of those rural communities um yet you know the
▶ 3:30:29criticism from us and I think broadly uh at least some on the other side is that under the previous administration mismanagement and regulations have really slowed that expansion leaving many Americans particularly in underserved in rural communities without that necessary access and in South car's 7th congressional district where I represent uh ory Telephone Cooperative HTC is bridging that digital divide if you look at a map they basically you can tell where the county lines are because uh they have they have uh
▶ 3:30:59they have installed so much fiber uh and connected so many people tens of thousands across the county uh and expanding into others um they've made major investments in high-speed internet but without these streamlined policies uh their ability to provide that reli affordable Broadband I think is at risk and they're not the only ones right uh we must fix th those programs preserve the universal service fund cut some of this red tape uh and improve the grant programs as discussed like bead and so I look
▶ 3:31:29forward to hearing how we can modernize that and we've heard a lot of that testimony today but Mr hail what role do you think the USF uh plays in ensuring uh Broadband access generally uh to people along the Grand Strand or in rural communities in South Carolina yeah I mean as I stated before us f is the essential program it's not necessarily designed to U Bridge the digital divide completely with capital projects but if you're it does provide that in South Carolina it does provide that in every state
▶ 3:32:00um and if you want it to last longterm and be there 10 years from now be sustainable and promote affordability it is it is the program that you have to do again and you have to have interjection of these other programs at the same time to do that capital for these market failure uh areas where uh where USF is not providing that that's you know that's where bead comes in so but it's it's critical it's going to be critical for a long time these these networks aren't going to last forever you're going to have to rebuild them again at
▶ 3:32:30some point you know so that's uh you've got to have a strong USF program thank you for that Mr Donovan can you discuss the importance of ongoing USF uh support and maintaining initial Investments um in those Broadband networks absolutely and and I love holding up HTC as a success story for for how this program can work um as I've said before that there's there's no such thing as a f future proof technology if you can't continue to preserve and invest maintain it um that's just part of operating a network and that's why
▶ 3:33:00it's so critical to have the back stop of USF for preservation of service as well as the the the expanding Broadband connectivity and that's why we are so concerned that if the the Supreme Court does something to jeopardize USF strongly encourage you to be ready for Congress to step in to maintain it speaking of I mean I was that was honestly where I was going to go next I was going to go to Mr hail but we're going to continue right with you sir I think you just got in the hot seat uh in a good way um you know given that uncertainty what should Congress do now to to prep
▶ 3:33:31for maybe the inevitable uh or maybe just general things that we can do to fix it with the funding gaps the loan defaults uh Broadband price hikes for consumers resulting from uh Supreme Court actions I mean so CCA is is part of this this supreme court because we do think that what Congress did in 96 Act is constitutional and and that we were successful but we're defending it because of the the grave situation if this court goes the other way um so Congress can affirm again the constitutionality of
▶ 3:34:01universal service fund the the challenge while the court case is pending is that if you don't know how the court could say that it's unconstitutional uh it doesn't really give you the road map for what Congress needs to do to fix it um again because we think that it's already pretty clear that it is constitutional um thank you for that Mr hail um also kind of in that same vein um do you believe that Congress should consider uh I know that there's a proposal uh to address the private delegation issue uh before
▶ 3:34:31the court uh of the U uh the U excuse me the universal service administrative company do you believe Congress should consider that option um con preparation of Congress should be prepared yes I think there's you know a plan B we we're still well uh we still think USF is constitutional um we are hopeful that the Supreme Court will rule that way um but yes Congress should be prepared to step in because we've talked about today the devastating impact if if USF went away and it would be immediate so
▶ 3:35:01definitely need to be ready for for and I know this I know this committee and staff and Leadership have had discussions about that for a long time along with the Senate Commerce Committee thank you so much with that I see my time has expired Madam chair and I yeld back Mr sh oh we switch switch a roof I thank the gentleman for you I wasn't assuming your gender okay well else whatever you think you are these days right anyway uh enough of that the chair recognizes Mr tono for five minutes for questioning
▶ 3:35:32uh thank you Mr chair and ranking member of matui for hosting this um hearing and thank you to our Witnesses for being here today expanding Broadband access has long been a priority of mine because high-speed internet is no longer op optional it's essential that's why the bipartisan infrastructure laws $42 billion investment in the bead program is an historic victory for the American people aimed at ensuring every American has access to Affordable and high-speed internet but instead
▶ 3:36:02of seizing this opportunity House Republicans have sought to undermine it sewing doubt weakening program standards and putting corporate interests ahead of hardworking Americans despite these challenges states are making Headway New York is one of 22 states that has completed the challenge process and is moving forward with provider selection and finalizing its beid proposals that's real meaningful progress but we can't afford to slow down every day of delay means families and students and small
▶ 3:36:32businesses in underserved communities disconnected yet instead of ensuring shovels hit the ground Republicans and the Trump Administration are trying to rewrite standards not to help our communities but to benefit billionaires and this is unacceptable let's be clear affordability is non negotiable Broadband isn't truly accessible if people can't afford it so when the affordable connectivity program expired last Congress over 3,000
▶ 3:37:03of my constituents reached out worried frustrated and rightly demanding action but Republicans refuse to extend it so Miss Morris first thank you for your outstanding work as the former Deputy Administrator at ntia given your experience at Nia working on the bead program how would weakening or removing affordability Provisions impact Broadband access for both Rural and Americans thank you Congressman well I would just note that
▶ 3:37:33in the statute affordability is a Bedrock principle um it's mentioned three times in the first section alone and there is a requirement in the statute that states um adopt a uh low cost ensure that there is a low cost option available in concert with um ntia and with approval from the assistant secretary which all states have done um the reason that it is so foundational in the statute is because when we are investing billions of dollars as you note into these networks we want to ensure that they're actually reaching
▶ 3:38:03the households that need the connectivity most if we are building networks that people on the end um cannot afford we are building bridges to Nowhere networks to no one and these households will not be able to and these communities will not be able to reap the full benefits of the connectivity well thank you and as you indicate uh making certain that we ensure funds reach the communities that need them the most that requires strong Federal coordination that's why in 2020 I fought to establish
▶ 3:38:33the office of internet connectivity and growth through my access Broadway Broadband act uh to improve coordination and ensure funding is deployed efficiently and equitably so Miss Morris given the complexity of be's Mission how does coordination through OIC help ensure These funds reach the right uh communities well so within the department and within ntia um ample coordination is happening but I think the real success story of coordination is the coordination that this influx of
▶ 3:39:03funding has driven across the federal government r large in my time at ntia I saw um an impressive amount of daytoday I mean we were on the phone with other agencies other departments and day out to make sure that our grant programs were coordinated in a way to maximize the federal investment and take that money as far as it can um and and truly the office of internet connectivity and growth was at the epicenter of that and um I there are incredible people working in that office doing um great work
▶ 3:39:34uh day in and day out and another key pillar of the bead program is investing in a Workforce that reflects the communities it serves ensuring good jobs strong labor protections and inclusive hiring practice I is you cannot let these critical Provisions be stripped away so how would removing these Provisions impact Equitable Workforce Development in Broadband um expansion I think the untold story with be is that it's the one of the best Workforce Development programs that we've seen and
▶ 3:40:04um these investments in infrastructure will drive a Workforce to build them that is um unprecedented in scale and scope the provisions in um n's no f for bead um related to Workforce were designed to ensure that the workforce building these networks was um skilled safe and well compensated well at the end of the day this is about ensuring that all Americans rural urban or Suburban have the Broadband access they need to thrive and we cannot let political games or
▶ 3:40:34corporate greed derail this Mission the stakes are too high and The Time for Action certainly is now with that uh Mr chair I yield back I thank the gentleman for yielding seeing there are no further members wishing to be recognized I would like to thank our Witnesses for being here today thank you so much uh this has been an important hearing and I think we uh we kind of understand how how we got to move forward I ask for unanimous consent to insert in the record the documents included
▶ 3:41:04on the staff hearing documents list and without objection that will be the order and we are adjourned oh sorry page two sorry sorry I remind I I remind this is my first time doing this I remind members that they have 10 business days to submit questions for the record and I ask the witnesses to respond to questions promptly members should submit their questions by the close of H business on Wednesday March 19th without objection the subcommittee is now
▶ 3:41:35adjourned I didn't I didn't know about the other page