Federal funding repeals could halt rural broadband expansion

The much-heralded broadband expansion efforts in Southwest Virginia may not come to fruition after all.

Virginia lawmakers and broadband advocates are facing a wave of uncertainty in the wake of a repeal of federal funding meant to close the digital divide in underserved communities, including many of the rural counties in Southwest Virginia. The Trump administration, through a June executive order, rescinded millions in digital equity grants, calling them “unconstitutional,” “racist,” and “woke handouts.”

The decision eliminated $18.3 million in State Digital Equity Capacity Grants and $10.5 million in Digital Equity Act grants awarded by the National Telecommunications and Information Administration, funding that was poised to assist rural Virginians in particular, according to state Sen. Jennifer Boysko of Fairfax County, who chairs Virginia’s Broadband Advisory Council. The repeal also clouds the fate of $1.74 billion Virginia was expecting from the Broadband Equity, Access and Deployment Program. Boysko expressed frustration with the move, citing years of preparation by localities and providers to meet federal criteria for the grant money.

“It’s a huge waste of money, effort and time,” she says. “This is funding that was passed through Congress into law and appropriated to Virginia. Now we’re all left scrambling.”

While not formally revoked, the guidelines have been changed, and applicants had to resubmit their proposals within 90 days.

“Requirements continue to change, and there’s a lot of confusion,” Boysko says. “Our broadband office is working diligently, but this is a real disruption.”

Virginia made significant investments in anticipation of receiving these federal funds. Gov. Glenn Youngkin‘s budget had already phased out some state funding under the assumption that BEAD would fill the gap.

“We’ll have to address all this in the next legislature,” Boysko notes. “This was supposed to be the great equalizer. It’s heartbreaking to know that people might now have to decide whether to stay in their communities simply because they can’t get online.”

But the news on the ground isn’t all bad. Cumberland Plateau Planning District Commission Executive Director Scotty Wampler says the broadband expansion in his district — Buchanan, Dickenson, Russell and Tazewell counties — has already been funded and will be completed by 2026.

News on the remainder of that BEAD money — where and how it will be allocated — is still up in the air, Boysko says.