Broadband office inches closer to allocating $675M in internet grants

New Mexico is one step closer to deploying its $675 million federal broadband award in the form of grants.

The Office of Broadband Access and Expansion announced this month that 29 entities are approved to file applications to access $675 million through the federal Broadband Equity, Access and Deployment, or BEAD, program.

Grants will be awarded in all parts of New Mexico. It’s an important effort in a state with many unserved or underserved rural areas; 16% of New Mexico’s 873,797 serviceable locations need better internet, according to OBAE.

“These grants will change lives, providing vital internet service to households and businesses that lack connectivity,” said Andrew Wilder, BEAD coordinator at OBAE, in a statement. “The BEAD program is a massive undertaking that will help bridge the digital divide in our state.”

The money comes from $42.5 billion the federal government set aside to improve internet access across the nation. The BEAD program prioritizes locations that are unserved — with no internet access or speeds under 25/3 megabits per second — and underserved — with speeds under 100/20 megabits per second.

In New Mexico, the 29 entities that can apply for grant money include one nonprofit, six tribal organizations, seven cooperatives and 15 other companies and internet service providers, according to OBAE. The office didn’t list the entities.

The state and federal government must approve final applications.

Timeline

It’s been a long process to get to this point in the program.

New Mexico first announced its intent to participate in 2022, when the state had to submit a letter of intent and an application for initial planning funds. New Mexico’s broadband office was hoping to get at least $700 million.

The federal government in June 2023 announced New Mexico received $675 million.

But that money couldn’t be spent right away.

Part of what helped the federal government determine grant award amounts was a rough draft of a map put together by the National Telecommunications and Information Administration outlining what areas in the U.S. lacked reliable internet service.

But there were problems with the map, such as locations lacking internet service left off the map or incorrectly labeled — which was expected, as the map was the first of its kind on such a large scale. NTIA opened up a challenge process in 2024 for states.

OBAE in August submitted New Mexico’s corrected map, and NTIA approved it in December.

Meanwhile, OBAE was accepting applications to see what entities qualified to access the portions of the $675 million grant. The deadline was in November. The office looked for technical capability, financial stability, legal requirements, and managerial and operational capabilities, according to OBAE.

The office hopes the final grants will help connect more than 31,000 unserved areas in the state.