Back in 2022, a report from Route-Fifty detailed an issue that has only been growing in relevance. Their February 2022 report theorized that a conflict was on the horizon, which they wrote could pit the Biden Administration against 17 states with laws that restrict municipal broadband projects.

Now, in December 2023, almost two years later, those concerns are resurfacing.

A recent report from Government Executive cited BroadbandNow research that lists 16 states (Colorado removed a requirement for municipalities to hold referendums for local broadband networks in May) that “have restrictive legislation against municipal broadband networks,” according to a November report from Broadband Now.

According to Government Executive’s reporting, the Broadband, Equity, Access, and Deployment Program requires states to allow municipalities to receive BEAD funds. BroadbandNow, which has tracked municipal broadband for over a decade, has described the language as “a key stipulation” that “may set up a large-scale, politically motivated battleground” in their November report.

Currently, plethora of states and territories are currently accepting public comments for their statewide draft digital equity plans and Broadband, Equity, and Deployment (BEAD) program initial proposals, as required by the BEAD program.

To add to the uncertainty that surrounds the issue, earlier this month Government Executive reported that the National Telecommunications and Information Agency (NTIA) did not respond when asked how they’d address the potential conflict between states with restrictive broadband network laws and the requirements set forth in the BEAD Program.

The NTIA’s approach to the matter remains an open-ended question. How they respond will have implications for states like Alabama, Texas, and Utah, which are three of the states with laws deemed restrictive by BroadbandNow’s report.

“States with roadblocks are setting up potentially public (and lengthy) legal battles with the U.S. government over BEAD grant funding opportunities,” BroadbandNow’s report stated.

Their research reported that two states, Maine and New York, have both passed “pro-municipal bills” over the past year. One, in Maine, “supports municipal broadband infrastructure through incentives and competition,” and the other, in New York, “authorizes the state to enter into agreements with municipalities to utilize excess broadband capacity and supports the state’s ConnectALL program,” according to BroadbandNow’s report.

BroadbandNow’s report predicted that municipal restrictions would be at the center of upcoming BEAD battles.

“It’s not difficult to see how this could potentially play out in states with heavily entrenched anti-municipal stances,” the report stated. “When states begin submitting their plans to the NTIA, those without restrictions could begin receiving funds quickly, while those that want a fight could end up being delayed by months – or even years.”

For a full list of states that BroadbandNow considers as having restrictive broadband laws, click here.