When the Trump administration announced modified regulations for the federal Broadband Equity Access and Deployment program (BEAD) program and a requirement that states conduct a new “Benefit of the Bargain” round of projects, broadband offices around the country were put on high alert. After a multi-year approval process to receive funding from the massive program, the playing field had again shifted. In an effort to cut back at red tape and bureaucracy, the National Telecommunications and Information Administration created a new set of requirements, meaning that those states with approved proposals would need to reevaluate and recalibrate, all under tight deadlines. An exemplar of efficiency, Louisiana’s broadband office, ConnectLA, pivoted and submitted a new plan. The new plan included an estimated $250 million in savings compared to the previous one. These savings were no accident. The Trump administration encouraged states to pursue competition and strategic technologies to ensure that the right providers for each area were selected, and ConnectLA rose to the challenge.

In an ideal world, the $250 million saved would return to the taxpayers, a testament to what smaller government can do. However, the options available are not so clear. Under the original BEAD, as outlined in the 2021 Infrastructure Bill, leftover or “nondeployment” funds were to remain in the states with the caveat that they could only be used for approved projects, often still related to broadband access. However, the modified program does not offer approved uses for dollars saved, leaving resourceful states to wonder what’s next.

Louisiana Governor Jeff Landry and ConnectLA’s executive director have requested clear guidelines for nondeployment funds and that the leftover money remain in Louisiana to advance goals that align with national priorities on artificial intelligence, education, and more. In his letter to Secretary of Commerce Howard Lutnick, Landry requested that the NTIA offer instructions by October, and wrote, “This approach would vividly demonstrate the business and financial savvy that is a hallmark of your department and the Administration overall: “President Trump and Secretary Lutnick to reinvest billions of dollars of program efficiencies in Al and America First Policies,” focused on rural/urban economies while generating an even higher return for the taxpayer.”

The Governor’s request raises a series of important questions about how states should leverage federal funding. If there is no scenario in which the remaining money goes back to taxpayers, what does prudent investment look like? How can leaders use these federal dollars to help Louisiana while avoiding future expenses and overreliance?

In a report from May of this year, “Strings Attached: How Federal Funding Affects State and Local Policies,” the Pelican Institute identified common ways that federal funding can become problematic for states. Among them, added administrative burdens, distraction from state priorities, and the creation of efforts that cannot be sustained once the funding stops. Should the leftover broadband funds remain in Louisiana, lawmakers should carefully assess which, if any, strings are attached. Excessive conditions around funding can effectively prevent the areas of our state that need it most from receiving valuable help.

Still, the uses outlined by Governor Landry, particularly AI investment, certainly hold great potential to help the state of Louisiana continue its ascent to becoming a hub for technology and innovation. To ensure that the impact of the roughly $250 million is lasting, rather than creating a fiscally unsustainable program, Louisiana officials should rely on long-term plans and regular evaluations while deploying the funds. Heeding the recommendations of the report, the Louisiana Legislature should play an active role in consulting with state agencies to create strategies for the future, after the funding is gone. One-time money shouldn’t be used to plug the state’s budget for recurring expenses—a practice contributing to “fiscal cliffs” as spending desires exceed available revenues. And as with all projects funded by BEAD dollars, the regular collection of data and evaluation of progress will be an invaluable tool for understanding what is working, and where improvements can be made.

The “lagniappe” or extra BEAD money is a marker of a job well done. Continuing to prioritize competition, efficiency, and sustainability will ensure that Louisiana’s fiscal responsibility towards BEAD funding lasts long into the future.

Links to Learn More

BEAD for Speed: Louisiana’s Broadband Efforts Lead Once Again – Pelican Institute

Strings Attached: How Federal Funding Affects State and Local Policies-Pelican Institute

Jeff Landry Asks Trump Administration if Louisiana Can Keep Leftover Broadband Money-nola.com