Lately, there have been a lot of rumblings about changes made to the federal Broadband Equity, Access, and Deployment (BEAD) Program and what they mean for connecting all Nebraskans to high-speed Internet. I’d like to first give a little history about where we’ve been with communications access in the state and then talk about what BEAD will do for Nebraska.

Like most states, Nebraska has established a state universal service fund, in addition to the federal universal service fund (USF). The Nebraska Universal Service Fund (NUSF) was established in 1997 and is funded by a fee on your telephone bill. The NUSF is administered by the Nebraska Public Service Commission (PSC).

The original purpose was to ensure all Nebraskans had access to telecommunications services by subsidizing the cost of reaching citizens living in “high-cost” areas, i.e., areas expensive to build telephone lines to. Only the incumbent carriers – ones tasked with the obligation to provide service to everyone within their exchange territory – are eligible to receive disbursements from the NUSF. At the time, copper phone lines were still the preferred technology by many telephone providers, but DSL and cable Internet were also emerging.

Since the inception of the NUSF, what it means to be connected has evolved. For a time, the goal was to connect Nebraskans to Internet speeds of 10/1 Mbps. That was eventually increased to 25/3 Mbps, and is now 100/20 Mbps or 100/100 Mbps. These thresholds have changed with the development of new technologies or the improvement of old technologies, including cable, fixed wireless, satellite, and fiber. Once focused on both capital construction and maintenance of these communications networks, the PSC is now considering a transition of the NUSF dollars to provide only ongoing support to telecommunications carriers.

The ability to move the NUSF from a capital construction fund to a maintenance fund is a significant milestone. More Nebraskans are connected today than ever before, thanks to a variety of public and private investments. Not only are telecommunications and broadband carriers making significant capital investments in expanding connectivity, but connectivity has also been a priority at the state and federal levels. In addition to supporting the NUSF, the Nebraska Legislature also funded several construction-based grants, including five cycles of the Nebraska Bridge Program, two cycles of Capital Projects Fund Grants, and the Precision Agriculture Infrastructure Grant Program.

The federal government has also established several programs to improve connectivity, including the original and enhanced Alternative Connect America Cost Model (ACAM and E-ACAM), the Connect America Fund (CAF) Phases 1 and 2, the Rural Digital Opportunity Fund (RDOF), and subsidizing the expenses of smaller rural carriers with USF dollars.

The BEAD Program is also a federal initiative passed under the Infrastructure Investment and Jobs Act in 2021 (the second phase of the federal COVID subsidies) and provided almost $42.5 billion to expand high-speed (100/20 Mbps) Internet access across the U.S. The program only funds build-out to unserved or underserved locations, and the original intent was that the program be “fiber-first,” with alternative technologies like fixed wireless and satellite only being used in extremely high-cost areas. Unfortunately, the National Telecommunications and Information Administration (NTIA), the federal agency handling BEAD implementation, was very slow to roll out the program. Just as states were receiving and evaluating project applications, the NTIA changed the rules in June 2025 through the issuance of a Policy Notice. Although the Policy Notice made several changes, the most concerning to many Nebraskans was the elimination of the fiber preference in favor of a technology-neutral approach and directed states to select project applications with the lowest cost to deploy.

Although many are disappointed that the investment in fiber-to-the-home will be much reduced under the new BEAD rules, there are still positive outcomes for Nebraskans. First, those unserved and underserved locations will still receive access to high-speed, 100/20 Mbps service, and they may receive it more quickly with alternative technologies than a fiber build-out. Second, companies expanding fixed wireless networks will still be building fiber to towers, which increases the amount of middle-mile network in our state and could reduce the cost for fiber expansion in the future. And finally, fiber is not the best solution for every need. Although unmatched in speed and reliability, fiber can only take Internet access so far. It is also essential for precision agriculture and public safety that we have strong wireless and cellular networks in our state, particularly in rural areas.

In the end, I understand the frustration with the NTIA’s changes to the BEAD Program, and I know many were excited to see an influx of fiber build-out in Nebraska. I hope our broadband providers will continue to make capital investments and use other resources out there to expand fiber access. At the same time, the BEAD Program is still a significant investment in connectivity. I am grateful that all Nebraskans will soon have some access to high-speed Internet.

Please continue to reach out to me about issues important to you at 402-471-2729 or by emailing me at mjacobson@leg.ne.gov. It is a pleasure serving as your State Senator and working for the interests of District 42.