H.R.1975 - Broadband Expansion And Deployment Fee Equity and Efficiency Act of 2025; BEAD FEE Act of 2025 (119th Congress)
Summary
H.R.1975, the BEAD FEE Act of 2025, aims to amend the Infrastructure Investment and Jobs Act. It seeks to ensure that states and their political subdivisions streamline fees related to broadband infrastructure. This streamlining is a prerequisite for receiving grant funds under the Broadband Equity, Access, and Deployment (BEAD) Program.
The bill mandates that any fees charged for placing, constructing, or modifying broadband infrastructure must be competitively neutral, technology neutral, nondiscriminatory, and publicly disclosed. These fees must be based on actual and direct costs, objectively and reasonably calculated.
Ultimately, the goal is to reduce financial barriers to broadband deployment, promoting wider access to high-speed internet.
Expected Effects
The primary effect of this bill would be to standardize and potentially lower the costs associated with broadband infrastructure deployment. States and localities would need to revise their fee structures to comply with the new federal requirements to remain eligible for BEAD program grants. This could lead to faster and more widespread broadband deployment, especially in underserved areas.
Compliance with the new requirements may require states to update their administrative processes and fee calculation methodologies. This could lead to some initial administrative burden but is intended to provide long-term benefits.
Consumers and businesses in underserved areas would likely experience improved access to broadband services as a result of the reduced deployment costs.
Potential Benefits
- Increased broadband access, particularly in underserved areas.
- Reduced costs for broadband providers, potentially leading to lower prices for consumers.
- Standardized fee structures across states, promoting fairness and transparency.
- Economic growth through improved digital infrastructure.
- Enhanced opportunities for remote work, education, and healthcare.
Potential Disadvantages
- Potential administrative burden for states and localities in complying with the new requirements.
- Possible legal challenges from entities that disagree with the federal government's authority to regulate these fees.
- Risk that some states may choose to forgo BEAD program grants rather than comply with the fee streamlining requirements.
- Potential for unintended consequences if the fee restrictions are too stringent, hindering necessary infrastructure maintenance and upgrades.
- Possible delays in broadband deployment as states adjust to the new regulations.
Constitutional Alignment
The bill's constitutional alignment stems from Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3). By setting conditions on how states manage fees related to broadband infrastructure, which is essential for interstate communication and commerce, Congress is arguably acting within its constitutional authority.
The Spending Clause (Article I, Section 8, Clause 1) also supports the bill, as it conditions the receipt of federal grant money on compliance with federal standards. This gives states a choice: comply with the federal requirements and receive funding, or decline the funding.
However, some may argue that the federal government is overstepping its authority and infringing on states' rights to manage their own infrastructure and finances. This could potentially raise Tenth Amendment concerns.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).