The new year inspires action, and with 42 of the 56 states and territories receiving approval on their final proposals, 2026 can be the year that internet infrastructure projects funded by the Broadband Equity Access and Deployment (BEAD) program can finally break ground. However, some tension remains between states and the National Telecommunications and Information Administration (NTIA) regarding the immense savings afforded by BEAD reforms in 2025. In the same rule change that made BEAD more cost-efficient, the NTIA rescinded approval on many affordability and adoption programs for which states were expecting funds, and states worried whether or not they would get their full BEAD allotments after all.
The SUCCESS for BEAD Act seeks to settle the uncertainty. By codifying a new phase to the BEAD program and clarifying approved uses for BEAD funds, Congress can reassure states that their savings will be available to them after the buildout phase while letting the NTIA focus on funding new infrastructure first. This balance enables the NTIA to pursue its vision for BEAD—to build networks that can “stand on their own” without ongoing subsidies—while ensuring that funding is directed towards addressing larger drivers of the digital divide—non-deployment issues. This careful follow-up legislation can thread the needle and placate both sides, allowing BEAD to fund non-deployment projects after last-mile infrastructure is funded, ensuring consumers are the ultimate winners.
According to a survey by the NTIA, of all the households without any home internet users, only 2.8 percent remained offline due to a lack of availability in their area. Meanwhile, larger shares of respondents cited privacy or security concerns (5.3 percent), said coverage was too expensive (15.4 percent), or were simply not interested in purchasing home internet service (55.7 percent). The data clearly shows that service availability is only a problem for a sliver of the offline population—the rest are already within reach of existing high-speed networks.
That’s why Congress was right to include language in the Infrastructure Investment and Jobs Act, the law that set up BEAD, specifically allowing the use of grant money for broadband adoption programs. Adoption concerns are also why NTIA’s BEAD restructuring notice last June was simultaneously productive and counter-productive. On the one hand, requiring states to use a technology-neutral approach to selecting grant awardees incentivized cost efficiency and yielded $21 billion in reported savings, leaving more money to put towards the weightier issues of affordability and adoption. On the other hand, the notice also rescinded approval on all previously approved non-deployment projects, leaving states unsure whether they could use their savings at all. NTIA’s Assistant Secretary Arielle Roth promised future guidance on the fate of the leftovers, but without that guidance, some states moved ahead with more costly plans to leave less cash on the table. In short, uncertainty about leftover savings has states and the NTIA in a tug-of-war for BEAD funds.
Enter the SUCCESS for BEAD Act. Introduced at the end of 2025, the bill alleviates the tension between states and the NTIA in two strategic ways. First, it defines “remaining amounts” as the funding that remains after an eligible entity’s final proposal receives approval. Second, it links the remaining amounts to a distinct subgrant program wherein all remaining funds must be awarded. All approved non-deployment uses (both those included in BEAD statutes and added with the SUCCESS Act) are linked to this follow-up subgrant program.
This careful policymaking can reconcile both sides. On the state side, SUCCESS makes it clear that their leftover funding will be available to them by law. At the NTIA level, SUCCESS clearly separates non-deployment projects into a secondary funding round. That way, the NTIA can keep BEAD laser-focused on deployment first, and then screen for competitive, value-adding adoption projects later. Both sides get their way.
Above all, requiring the NTIA to award the remaining $21 billion and linking those funds to a secondary, non-deployment funding phase can drive positive outcomes for consumers. Research finds that, on a national scale, high levels of broadband adoption improve incomes, reduce unemployment, and can even safeguard against declines in the number of businesses in rural areas. The same study found that focusing on broadband availability had far more limited national impact. In other words, a dollar spent on adoption programs can go further than a dollar spent on last-mile buildout. Ultimately, the SUCCESS for BEAD Act balances state and NTIA interests and directs them both towards pro-consumer outcomes.
The new year is a time for action, and the NTIA is determined to “produce real, measurable value.” Whether the SUCCESS for BEAD Act becomes law or not, the NTIA would be wise to take a cue from this legislation and designate the remaining funds for smart, competitive adoption programs. Because at the end of the day, getting more Americans connected is the real measure of BEAD’s success.
Nate Karren is a policy analyst with the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, follow us on X @ConsumerPal.