Understanding the New BEAD Rules: What’s Changed in NTIA’s June 2025 Policy Notice
On June 11, 2025, the National Telecommunications and Information Administration (NTIA) issued a new Policy Notice that restructures key elements of the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. The update supersedes several provisions of the original 2023 Notice of Funding Opportunity (NOFO) and further guidance given under the Biden Administration that will require states and territories to update their broadband deployment proposals to reflect new program criteria and evaluation procedures.
The Policy Notice prioritizes a cost-focused approach to BEAD funding, removes non-statutory program requirements, and emphasizes a technology-neutral framework for project selection. Eligible Entities must revise previously submitted Final Proposals and reinitiate key elements of the application process to comply with the new rules. NTIA has established a 90-day compliance window for submitting revised proposals and completing a new round of subgrantee selection.
Program Restructuring Highlights
Under the new Policy Notice, NTIA has voided all previously approved Final Proposals. Each Eligible Entity must submit a revised Initial Proposal within 30 days and complete a new selection process—referred to as the “Benefit of the Bargain Round”—within 90 days. This additional round must allow all applicants to compete on an equal basis, regardless of technology type or prior participation.
Key scoring rubrics have been revised, and the new primary criterion is the lowest total BEAD program cost per location. States and territories must also reassess project areas, potentially reclassifying or excluding locations that are already served, covered by enforceable commitments, or no longer eligible under updated definitions.
The revised process resets expectations for planning, scoring, coordination, and compliance. Activities based on prior NOFO requirements, such as stakeholder engagement, affordability modeling, and DEI requirements, can no longer be considered in award decisions.
Shift Toward Technology Neutrality
The new Policy Notice removes the prior preference for fiber and adopts a technology-neutral approach. To qualify, these technologies must meet the statutory performance benchmarks of at least 100/20 Mbps speeds, ≤100 ms latency, and future scalability.
The updated definition of a “Priority Broadband Project” no longer references specific infrastructure types. Instead, any project that meets the performance requirements and demonstrates scalability, regardless of technology, can be prioritized. In addition, states may not categorically exclude any qualifying technology from consideration, and NTIA reserves the right to review or overturn a state’s determination of project eligibility.
Appendix A of the Policy Notice outlines technical validation criteria for unlicensed fixed wireless systems. These providers are now explicitly eligible to receive BEAD funding, subject to demonstrating compliance with technical performance standards.
Scoring Rubrics and Cost Emphasis
The Policy Notice eliminates several secondary criteria that were part of the original NOFO. Going forward, the single mandatory scoring factor is the total BEAD program outlay per location. This applies across all competing bids for the same project area.
If multiple applications fall within 15% of the lowest cost, Eligible Entities may apply secondary criteria such as speed to deployment or additional technical capabilities. However, states may not reintroduce prior scoring categories such as affordability, labor practices, open access, or stakeholder engagement.
States must also allow previously disqualified or excluded applicants to participate in the new application round, either by reaffirming their original submission or submitting a new one. Prior pre-qualification processes must be reopened to ensure equal opportunity.
Changes to Eligible Uses and Proposal Process
The Policy Notice restricts BEAD funds exclusively to infrastructure deployment. Funding for allowable non-deployment purposes is under review and NTIA will issue updated guidance in the future. However, as of the date of this Policy Notice, all previously approved non-deployment uses—such as workforce development, digital literacy efforts, or outreach—are no longer reimbursable under the program. NTIA has rescinded approval for all such activities and will not cover costs incurred after the Policy Notice date.
Eligible Entities must also update their mapping data, revise broadband serviceable location (BSL) lists, and remove ineligible areas. NTIA has outlined specific steps for true-up, including the use of FCC reason codes and updated BSL eligibility criteria. In addition, a new permitting tool called the Environmental Screening and Permitting Tracking Tool (ESAPTT) must now be used to streamline National Environmental Policy Act (NEPA) approvals.
All proposals must reflect these revised requirements, and NTIA will evaluate updated Final Proposals under the new framework. Entities unable to comply within the 90-day window may risk further delays or ineligibility.
Conclusion
The June 2025 Policy Notice from NTIA introduces significant changes to the BEAD Program, prompting states and territories to adjust their proposals, application processes, and program expectations. Each state is now tasked with revisiting their subgrantee selection process to allow all provider types—including fixed wireless, cable, and LEO satellite—to compete equally under new criteria that emphasize lowest cost per location served. To fully grasp how these changes might affect ongoing or future broadband deployment projects, stakeholders are encouraged to thoroughly review the complete Policy Notice. For a concise summary of these program modifications, see Table 1 below.
Table 1: Summary of Key Changes in NTIA’s June 2025 BEAD Policy Notice
