D.C. Memo: Lutnick to Take BEAD in a New Direction
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Lutnick: Commerce Secretary-designate Howard Lutnick yesterday promised to take the $42.45 BEAD program in a new direction, saying he would use the money efficiently and exclusively on broadband deployment projects. “Let's do it efficiently and let's do it swiftly, let's use satellites, let's use wireless and let's use fiber. And let's do it the cheapest, most efficiently we can, and I commit to working with you to make sure the states execute and deliver on the promise that Congress has made,” Lutnick said before the Senate Commerce Committee in a three hour-plus confirmation hearing. When asked by Senate Majority Leader John Thune (R-S.D.) if BEAD would focus on funding construction of broadband networks, Lutnick said, “Absolutely.” Vice President JD Vance arrived to introduce Lutnick to the panel just a few hours before OMB pulled its Monday memo viewed as an across-the-board spending freeze affecting programs like BEAD. Lutkin signaled that under his command, Commerce is going to give close supervision to state funding applications with high per-location costs. “I expect the states to provide the most efficient way, the most cost efficient and effective way to get broadband to every house. I heard a story where they were planning to run fiber for $200,000 to a house that was worth $125,000. The waste of America is over in the Commerce Department,” he said.



Committee Democrats, including Sen. Ed Markey (Mass.), Jackey Rosen (Nev.) and Ben Ray Luján (N.M.), had a round of tense exchanges with Lutnick based on their concern that Commerce would actually not spend the BEAD money under orders from President Trump. In his questioning, Markey pressed Lutnick to “execute that law and spend the funding as it is written.” Lutnick replied, “It is my promise that I will try my best to give this Committee and the Congress the benefit of the bargain that you have passed.” NTIA recently approved Nevada’s BEAD awards, which included $77,000 per location for 286 locations for Beehive Broadband. Rosen demanded that NTIA protect Nevada’s approval. “Law are not simply suggestions from Congress,” she said. Lutnick replied, “I can commit to you that if it has been rigorously done and deeply efficient and it is the most efficient use to get broadband to your constituents, then it’s easy for me to commit to it,” Lutnick said. “You would not mind if we made it better.” Rosen insisted Nevada has already been approved and was about to begin building. Luján at times got emotional and raised his voice at times in demanding that Lutnick promise not to carry out an unlawful or unconstitutional order by Trump. “I work for [Trump],” Lutnick said. Luján replied, “Is your response that if the president asks you to cut broadband infrastructure funding that you will do that? Is that what I just heard.” Lutnick said, “Again, I work for the President of the United States and I'm here to execute his policies.” Update: Cruz announced Wednesday evening that his committee will vote on Lutnick’s nomination on Feb. 5, 2025 at 10:00 a.m. EST.