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Increase programs and reduce compliance issues | Baker Tilly
Article
Expanding broadband access: Navigating federal grants and compliance challenges
May 15, 2025 · Authored by Claire Hilleary, Jennifer Hickerson, Halie Garcia
As the digital divide continues to be a critical issue across the U.S., the federal government has allocated substantial funds to expand broadband access through programs such as the Broadband Equity Access and Deployment (BEAD) Program, Broadband Infrastructure Program (BIP), Middle Mile Program, Tribal Broadband Connectivity Program (TBCP), and Rural Connect Broadband ReConnect Program (ReConnect).
These initiatives, facilitated by the National Telecommunications and Information Administration (NTIA) and the U.S. Department of Agriculture Rural Utilities Service (RUS), aim to enhance broadband infrastructure, especially in underserved and unserved communities.
For broadband providers, navigating the complexities of federal grants requires a multi-faceted approach focused on compliance, training, and effective management practices.
By enhancing their strategies in these areas, providers can not only meet the stringent requirements set by federal and state agencies but also contribute significantly to bridging the digital divide through successful broadband expansion projects.
Overview of key broadband expansion programs
Key takeaways of the programs are as follows.
BEAD Program. Allocated approximately $42.45 billion, this program focuses on providing states with funding to support broadband infrastructure projects, with an emphasis on achieving equitable access.
BIP. With $288 million in funding, BIP targets the construction and deployment of broadband infrastructure.
Middle Mile Program. This program, funded at $1 billion, aims to develop middle mile infrastructure to reduce the cost of connecting unserved and underserved areas.
TBCP. With $980 million, TBCP is dedicated to expanding digital and broadband access, promoting telehealth, and enhancing educational resources for Tribal lands.
ReConnect. With varying amounts assigned each year, ReConnect focuses on deployment of broadband infrastructure projects in unserved and underserved areas of the country, with preferences provided to certain disadvantaged communities.
Compliance challenges in broadband expansion grants
Navigating the compliance landscape of these federal broadband grants presents several challenges.
Eligibility and allowable activities
Ensuring all activities and expenditures align with the specific guidelines of each program is crucial. Missteps here can lead to disallowed costs and funding recoupment.
Procurement controls
Federal grants mandate rigorous procurement processes to ensure transparency and fairness, requiring vendors to maintain appropriate records and justify selections. Additionally, requirements such as prevailing wage certifications come with many of these programs.
Budget and reporting requirements
The budget and reporting requirements for federal broadband grants are particularly stringent, reflecting the government's need for accountability in the use of public funds.
Once grant funds are awarded, recipients must quickly establish a compliant reporting system as requirements kick in almost immediately. For individual recipients, this includes detailed bi-annual reports to the state on the use of funds, which continues until all funds are fully expended. These reports must cover various aspects of project implementation, from financial expenditures to operational milestones.
In addition to federal requirements, states may impose their own reporting obligations on recipients. These can vary widely and might require additional data that aligns with what’s reported to the NTIA. Starting one year after receiving the funds, and then every six months thereafter, states must report to the NTIA detailing how funds were spent, the services provided, and the demographics of the locations served.
The current guidelines for these reports are often vague and subject to change, which poses a significant challenge for compliance. Grant recipients must stay agile, ready to update reporting processes as new guidelines are issued by the NTIA or state agencies.
Evolving guidance
Particularly for the BEAD program, states are encountering new scenarios not fully addressed in initial guidelines. This evolving nature of rules requires vendors to remain flexible and responsive to updates.
Enhancing grant management strategies for broadband expansion
To successfully manage federal grants for broadband expansion, recipients need to adopt comprehensive strategies that address the complexities of compliance and ensure efficient project execution. Strategies to address these complexities are as follows.
Understand compliance requirements
It’s crucial for vendors to have a thorough understanding of the regulatory landscape. This includes familiarizing themselves with the specific requirements of each grant program.
Regular reviews of the Federal Register, consultations with legal experts, and participation in NTIA and RUS workshops can provide ongoing insights into evolving compliance obligations.
Deploy employee training and education
Effective training programs are essential for ensuring all team members understand their roles in maintaining compliance. These programs should cover the specifics of federal grant management, including procurement processes, financial management, and reporting requirements.
Interactive workshops, e-learning modules, and regular compliance updates can help keep the team well-informed and vigilant.
Develop comprehensive grant management resources
Creating detailed policies and procedures that outline every step of the grant management process can help prevent compliance breaches. These resources should include templates for documentation, step-by-step guides for financial reporting, and checklists for procurement and project management.
Regular audits of these policies and updates in line with new federal guidance will ensure they remain effective and relevant.
Establish effective communication strategies
Clear and open communication channels between project teams, stakeholders, and federal agencies are vital. Regular status updates, scheduled meetings, and clear documentation of all communications help ensure that everyone is aligned and that any issues are quickly addressed.
Utilizing project management tools that offer integrated communication features can enhance transparency and collaboration.
Monitor and report diligently
Implementing robust monitoring systems to track project progress and compliance is critical. This includes setting up internal controls for accurate financial reporting and adherence to project timelines.
Regular internal reviews and external audits should be conducted so reporting to federal agencies is timely and accurate, adhering to the specifics of the grant’s requirements.
