Legislative Services

Last week, the Texas Broadband Development Office (BDO) announced a pause on all grants and contracts related to the federal State Digital Equity Capacity Grant Program. The following information addresses some of the uncertainties regarding funding opportunities available to counties through the BDO.

Impacted Funding Opportunities

As of now, no funds have been awarded for programs funded by the Infrastructure and Investment Jobs Act (IIJA):

• State Digital Equity Capacity Grant Program – The BDO’s application for this program was accepted by the National Telecommunications and Information Administration (NTIA) in November 2024. Texas was allocated $55.6 million in funding from the U.S. Treasury, but this allocation was paused on March 4.
• Broadband Equity, Access and Development (BEAD) Program – The BDO completed the map challenge process and is on schedule to continue the selection process for subgrantees in May. The NTIA allocated $3.3 billion in federal funding for this program. While the BDO has not announced changes to this funding opportunity, activities at the federal level could put these funds on hold as well. Additionally, in a letter sent March 4 to U.S. Sen. Ted Cruz, Texas Comptroller Glenn Hegar recommended federal officials make changes to the requirements for the BEAD Program funding. See the Texas Tribune’s reporting on this for details.

Available Funding Opportunities

The following funding opportunities are still open to counties:

• Broadband Infrastructure Fund (BIF) – Initially funded with $1.5 billion as approved by Texas voters with the passage of Proposition 8 in November 2023, this fund includes the BOOT programs (I and II) as well as matching funds for the federal BEAD Program. It is unclear how the BEAD matching funds will be affected.
• Pole Replacement Program – This account, funded with state dollars, received a $75 million allocation from the 88th Legislature.
• ARPA Capital Projects Fund – Managed by the U.S. Treasury, this fund addresses challenges stemming from the COVID-19 pandemic, including broadband expansion and access to critical services such as Next Generation 9-1-1. These funds have already been expended.
• Technical Assistance Program – Created and administered by the BDO, this program is remains active and counties receiving assistance should not be impacted by recent developments.

For more information on this article, please contact Sara Ratliff or William Chapman.