White House Links BEAD Non-Deployment Funding Eligibility to State AI Laws

President Trump has signed an Executive Order (Order) establishing federal AI policy that directly conditions Broadband Equity Access and Deployment (BEAD) program funding on state artificial intelligence regulations. States with AI laws deemed “onerous” by the federal government may lose access to BEAD non-deployment funds, with implementation guidance required from the Commerce Department by March 11, 2026. The Order positions AI innovation as dependent on high-speed broadband networks, bringing telecommunications infrastructure within the scope of federal AI policy enforcement.

BEAD Funding Restrictions

The Executive Order requires the Secretary of Commerce to issue a Policy Notice establishing conditions for continued BEAD program eligibility by March 11, 2026. States identified as having conflicting AI laws may become ineligible for BEAD non-deployment funds “to the maximum extent allowed by federal law.” The Policy Notice directive is to demonstrate how state AI regulation threatens BEAD-funded deployments, AI applications that rely on high-speed networks, and the program’s universal connectivity mission.

The Order also directs the Federal Communications Commission (FCC) to consider adopting federal AI reporting and disclosure standards that would preempt conflicting state requirements, potentially affecting AI tools used by telecommunications providers for network management and operations. Additionally, all federal agencies must assess discretionary grant programs and consider conditioning funding on states avoiding conflicting AI laws.

The Commerce Department’s March 2026 evaluation will provide clearer guidance on which state laws are considered problematic. JSI will continue monitoring developments as AI policy and BEAD program requirements converge. For assistance with BEAD program compliance or questions about how these developments might affect your operations, please contact Amanda Molina or Brett Hallagan.