Fate of Nebraska’s $300M in BEAD Funds Remains Uncertain

The State of Nebraska announced it has activated its first broadband connection through the federal BEAD program, Inside Towers recently reported. But questions remain about more than $300 million in unspent federal funding originally allocated for internet expansion.

Governor Jim Pillen praised recent changes to the program that allow technologies beyond fiber, including wireless and satellite services, arguing they can deliver faster broadband to more Nebraskans. State officials plan to use $44.5 million of the original $405 million BEAD allocation to connect about 14,000 eligible locations.

Some broadband advocates disagree with the shift away from fiber, arguing it remains the most reliable and scalable option. Critics say Nebraska ranks among the lowest states in using BEAD funds for fiber deployment and could have expanded broadband access further by investing more of the available funding, according to KTIV-TV.

Nebraska has awarded contracts to seven providers expected to connect 88 percent of eligible locations, while a new application round will target the remaining areas.

State leaders are also exploring how to use roughly $317 million in remaining federal funds, with potential investments including technology to support precision agriculture and other broadband-related initiatives.