States Shift BEAD Funds Away From Fiber

A Vernonburg Group analysis projects that about 28 states and territories will see their fiber share of BEAD locations decline under NTIA funding limits.

Updated on Nov. 6, 2026 in Telecommunications

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An analysis published November 6, 2026 by Vernonburg Group examined how NTIA funding caps under the Broadband Equity, Access, and Deployment (BEAD) program may push states toward lower-cost broadband technologies. Vernonburg projects that about 28 states and territories will see their fiber share of BEAD locations decline compared with the NTIA's first round.

Why it matters

Each state's BEAD allocation is capped by its count of unserved locations multiplied by the average per-location cost in its approved final proposal, and remaining locations are likely more expensive to reach. That constraint could steer states toward fixed wireless or satellite, affecting the quality and type of broadband available to households across the country.

Vernonburg's modeling, which is a projection rather than a final allocation, estimates fiber-share drops of about 34 to 51 percentage points in Missouri, Wisconsin, Maine, Indiana, and Arkansas, while the District of Columbia and New York are projected to gain 67 and 52 points respectively. Several cost-per-location questions remain unanswered by the NTIA guidance.

The players

Vernonburg Group

A telecommunications consulting firm that uses cost modeling and mapping tools to analyze broadband deployment and funding.

National Telecommunications and Information Administration (NTIA)

The U.S. Department of Commerce agency that administers the BEAD program and sets state funding allocations.

Benton Institute for Broadband & Society

A nonprofit research and advocacy organization focused on broadband policy and access in the United States.

The details

The NTIA sets each state's BEAD funding based on the number of unserved or underserved locations after challenge, multiplied by the average per-location cost from its approved final proposal. States are expected to cover all remaining locations within that amount unless they demonstrate extraordinary circumstances. The NTIA added 13 answers to its BEAD frequently asked questions document addressing the supplemental round.

November 6, 2026: Vernonburg Group's analysis of BEAD funding shifts is published.

Big Picture

The Broadband Equity, Access, and Deployment (BEAD) program's per-location cost formula is now pushing states toward cheaper technologies as they fund the harder-to-reach locations left after the first round. Vernonburg's projections suggest the program's cost structure, rather than technology preference alone, may determine how far fiber reaches in the United States.

Households in states with projected fiber declines may face a higher likelihood of fixed wireless or satellite service rather than fiber. Customers in rural areas could see differences in speed and reliability depending on the technology their state selects.

The takeaway

Readers following broadband access should watch how states finalize their BEAD proposals, since the technology mix chosen will determine the speeds available in their communities. Checking state broadband office announcements can reveal which technologies are planned for local areas.