New Mexico Awards $26.9 Million for Broadband Project

The funding supports a fiber-optic expansion initiative connecting thousands of rural homes and businesses.

Updated on Oct. 15, 2026 in Telecommunications

New Mexico Awards $26.9 Million for Broadband Project

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The New Mexico Office of Broadband Access and Expansion has awarded $26.9 million in federal grant funds to the Kit Carson Electric Cooperative. The project aims to deliver reliable high-speed internet to 4,000 homes and businesses between Española and Cimarron.

Why it matters

This award marks a significant step in the state's effort to address persistent connectivity gaps for unserved regions. It simultaneously replaces a prior initiative that was scrapped following evidence of fraudulent reimbursement activity.

The initiative involves constructing 1,035 miles of fiber-optic cables, with 931 miles slated for above-ground installation. Kit Carson Electric Cooperative is contributing $12 million in matching funds toward the project.

The players

Kit Carson Electric Cooperative

This organization is a community-owned utility provider responsible for managing the new fiber-optic infrastructure project.

New Mexico Office of Broadband Access and Expansion

This state agency is tasked with distributing federal funds to close the digital divide across New Mexico.

Resound Networks LLC

This private telecommunications company previously held a state broadband award that was rescinded following allegations of internal fraud.

New Mexico Department of Justice

This state department is currently reviewing a criminal referral related to fraudulent reimbursement requests.

The details

The state redirected funding after rescinding a previous award to Resound Networks LLC due to fraudulent and altered reimbursement requests submitted by a former employee. Resound Networks has since repaid $393,122 to the state as part of the resolution.

The state created the Office of Broadband Access and Expansion in 2021.
The U.S. government initially awarded $675 million in BEAD funding in 2023.
The Trump administration released $382 million of BEAD funds in January 2026.
OBAE made a criminal referral to the state Department of Justice in May 2026.
The state officially announced the new grant award on October 14, 2026.

The Tech Race

This project accelerates the regional shift toward high-speed fiber connectivity, replacing outdated or unreliable legacy systems. It underscores a broader competitive effort by rural cooperatives to capture market share from traditional private providers using federal infrastructure support.

Residents and business owners in the Española to Cimarron corridor can anticipate new access to reliable high-speed internet as the fiber-optic network is built. This upgrade will fundamentally improve local digital workflows and connectivity for thousands of users.

The takeaway

Reliable broadband access remains a critical priority for rural infrastructure development in the state. Officials advise that project timelines are subject to extensive permitting and environmental review phases over the coming years.

What happens next

Kit Carson Electric Cooperative expects to complete the necessary environmental reviews and permitting processes for the construction project by 2030.