Industry to New Commerce Secretary: Let’s Address BEAD, Tariffs, Manufacturing
At a Glance:
- Upon Howard Lutnick’s confirmation as Commerce Secretary, CEOs of Fiber Broadband Association and Telecommunications Industry Association issued statements.
- FBA CEO Gary Bolton offered to collaborate with the Commerce Department to ensure efficient, effective deployment of BEAD funds.
- TIA CEO Dave Stehlin emphasized efficiency as well as expeditious funds disbursement, while also calling for a continuation of domestic-sourcing requirement waivers.
- Stehlin addressed tariffs, floating the idea of a tariff-exemption process.
- He also pointed out the importance of maintaining network resilience against cyber attacks.
Tuesday evening, February 18, the United States Senate confirmed Howard Lutnick to head the country’s Department of Commerce. As Commerce secretary, Lutnick is the proverbial tip of the spear for the Trump Administration’s trade policies. The Commerce Department includes the National Telecommunications and Information Administration (NTIA), which is administering the BEAD (Broadband Equity Access and Deployment) program.
Late last year we covered U.S. Senator Ted Cruz’s public criticism of the NTIA’s administration of BEAD. In early February, President Trump nominated Arielle Roth, a former member of Cruz’s staff, to head the NTIA. With a potential shift in policy outlook at the top of the NTIA, the information and communications technology (ICT) industry as a whole faces some level of uncertainty in BEAD’s administration.
Upon Lutnick’s confirmation, the Fiber Broadband Association’s chief executive officer Gary Bolton and the Telecommunications Industry Association’s chief executive officer Dave Stehlin issued statements welcoming him to the position and summarizing their organizations’ positions on specific topics.
BEAD
Bolton’s statement focused on BEAD, stating Lutnick’s “leadership comes at a pivotal moment as the $42.45-billion BEAD program moves forward from planning to execution, expanding high-speed broadband access to unserved and underserved communities across the country. Reliable, future-proof broadband is the backbone of America’s digital economy, driving job creation, business growth, AI innovation, education, healthcare access, and global competitiveness. The success of BEAD will not only shape the future of connectivity but will also create long-term economic opportunities for millions of Americans. We look forward to working with Secretary Lutnick and the Commerce Department to ensure BEAD funding is deployed efficiently and effectively as we look to close the digital divide and deliver lasting benefits to communities nationwide.”
Stehlin’s comments on BEAD also referenced efficiency. He pointed out, “TIA is unique as we manage the development of many critical infrastructure technical and process improvement standards for fiber, wireless and satellite networks. We advocate for the ICT industry and work to support government stakeholders’ efforts to increase connectivity and trusted networks … As the Department of Commerce examines its stewardship of the BEAD program, it is important that these funds are used efficiently and that deployment begins expeditiously. We look forward to working with you to ensure that BEAD is successful in its intended goal: connecting all Americans with high-speed, resilient networks throughout the country. We agree with your comments at your nomination hearing that the new administration should review and streamline existing rules to ensure that taxpayer funds are utilized consistent with Congress’s intent to connect Americans to broadband.
“To further ensure that BEAD funds are administered in a manner consistent with Congress’s intent, it is essential for the administration to work with Congress on enacting legislation that prevents federal broadband grants from being considered taxable income. Congress never intended for BEAD grants to be subject to federal income tax, and treating these funds as taxable income could impede applications’ ability to apply and diminish the program’s overall impact. By streamlining rules and maintaining beneficial policies, the administration can maximize the impact of the BEAD program and ensure that all Americans have access to high-speed broadband.”
Stehlin also addressed BABA—Build America Buy America—in his commentary about BEAD, stating the current made-in-America requirements—and exceptions—are appropriate and advantageous: “TIA and its members are proud of the work done by the ICT industry to bring manufacturing back to the United States. These investments were based on a limited waiver of domestic sourcing requirements that effectively balanced the government’s goals to support U.S. manufacturing for such requirements with a pragmatic approach to the realities of an intricate global ICT supply chain that allowed TIA members to bring back manufacturing to the United States where possible. As Commerce works to streamline BEAD requirements, we believe that NTIA should maintain this waiver to support the investments that TIA members have made in American manufacturing and innovation.”
Tariffs
Tariffs were on the table too. Stehlin emphasized the importance of minimizing their detrimental impact on TIA member companies and the ICT industry as a whole. He stated, “As the administration uses tariffs to make progress on key goals, we encourage the Department of Commerce to engage with industry to limit impacts on consumer prices and domestic manufacturing. ICT tariffs will increase prices for consumers and limit the positive impact of NTIA’s broadband investments. Even products manufactured in the U.S. rely on inputs sourced from abroad, and as a result broad-based tariffs may make America a less-attractive destination for ICT manufacturing and innovation. By coordinating with industry through a tariff exemption process and using tariffs to achieve concrete commercial results for industry, Commerce has an opportunity to limit the negative impacts of duties and create new opportunities for U.S. leadership in the global economy.”
Cybersecurity
In the final portion of his statement, Stehlin addressed cybersecurity—a topic he has kept near the top of the TIA’s agenda since becoming the association’s CEO. “Given the increasing pace of high-profile cyber-attacks from state-sponsored actors, it is important to focus on resiliency for networks, including those deployed under the BEAD program,” he began. “These high-profile incidents underscore the importance of prioritizing security in broadband deployment and existing networks. Incorporating security into networks by building it into the design ensures that infrastructure is resilient against existing and emerging threats. This approach protects sensitive data and communications while enhancing network reliability and trustworthiness. TIA strongly advocates integrating robust security measures in ICT network design and implementation.
“These high-profile attacks also underscore the need to promote resiliency with our allies abroad. TIA has been working closely with the Department of Commerce’s Commercial Law Development Program to assist friendly governments around the world in adding resiliency and security into their next-generation network designs and operations, including the need to secure equipment from trusted suppliers. TIA looks forward to continuing this valuable work promoting the use of cyber and supply-chain risk mitigation tools and plans, which are essential for maintaining the integrity of communications infrastructure, both domestically and abroad.”