News
The Office of Management and Budget at the White House has ordered a temporary pause of all financial assistance programs. Here’s how it could impact broadband.
By: Brad Randall, Broadband Communities
A memo sent out to federal departments and agencies Monday orders a temporary pause on all federal grant, loan, and financial assistance programs.
The pause in funding is set to begin Tuesday, at 5 p.m., according to the Office of Management and Budget memorandum, which was obtained and published by Politico.
Under the order, agencies will have until Feb. 10 to submit “detailed information on any programs, projects or activities subject to this pause,” the memo stated.
According to the memo, agencies must pause funding until the office “has reviewed and provided guidance to your agency with respect to the information submitted.”
The memo also explained the White House’s rationale for the funding pause.
“The use of federal resources to advance Marxist equity, transgenderism, and Green New Deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve,” the memo stated. “This memorandum requires federal agencies to identify and review all federal financial assistance programs and supporting activities consistent with the president’s policies and requirements.”
Early BEAD states ‘could’ feel impacts
Jade Piros de Carvalho, the VP of Broadband Advocacy and Partnerships for the Bonfire Infrastructure Group, reacted to the news.
The story broke shortly after Piros de Carvalho predicted the Broadband Equity, Access, and Deployment (BEAD) Program will survive in a recent Broadband Communities article.
She said she doesn’t think the latest funding pause will have immediate impacts on the BEAD Program.
She warned, however, that impacts could still happen.
“There are no networks that have been built with BEAD funding yet,” she told Broadband Communities on Tuesday.
Piros de Carvalho, who formerly ran the Office of Broadband Development in Kansas, said a lot will depend on how long the pause takes.
“It could impact early states,” she said.
Piros de Carvalho mentioned Louisiana, Nevada, and Delaware as three states that she considers “early” in the BEAD Program.
She said the pause could also impact broadband projects supported through the Capital Projects Fund (CPF) and the Tribal Broadband Connectivity Program (TBCP).
The TBCP is “a $3 billion program directed to tribal governments to be used for broadband deployment on tribal lands, as well as for telehealth, distance learning, broadband affordability, and digital inclusion.”
According to the Jan. 27 memo ordering the funding pause, each agency will have to “assign responsibility and oversight to a senior political appointee.”
Additionally, the memo stated that agencies must “initiate investigations when warranted to identify underperforming recipients, and address identified issues up to and including cancellation of awards.”
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