NTIA Restricts State Flexibility in Defining Community Anchors

On June 6, the Department of Commerce released updated guidance for the Broadband Equity, Access, and Deployment (BEAD) Program. Among the many changes in the restructuring notice, the NTIA is now scaling back the types of Community Anchor Institutions (CAIs) eligible for BEAD funding, revoking its earlier flexibility that allowed states to propose additional types of anchors beyond those named in the bipartisan Infrastructure Investment and Jobs Act (IIJA).

Previously, states had some flexibility to include nontraditional CAIs such as food banks, houses of worship,  and community centers if they played a clear role in helping people get online. Under the new guidance, that option is no longer available.

Why Community Anchors Matter?

CAIs are the places people turn to when they don’t have internet access at home. These often include schools, libraries, and health clinics. In many rural areas, they might also include churches, housing offices, or general stores that provide digital skills classes or offer public Wi-Fi.

These local institutions are essential lifelines for broadband access, especially for those who have been historically disconnected. In remote communities where traditional anchors may be miles apart, creative solutions have filled the gap. States and local officials have embraced that flexibility to meet people where they are, literally.

What Just Changed?

The updated guidance from the NTIA now says it will “narrowly interpret” the statutory definition of CAIs laid out in the IIJA. States can no longer propose additions based on local needs or how a facility functions in the community. While states can still submit their lists of CAIs, the NTIA will closely review them and may reject entries that don’t fit the narrower, statutory definition. These updated rules now risk excluding non-traditional but vital institutions that communities rely on for access to broadband connectivity.

What Does Vermont’s Approach Reveal About Local Needs?

Vermont offers a great case study in how meaningful flexibility can be. Understanding that rural life often doesn’t revolve around traditional institutions, Vermont proposed expanding its CAI categories based on how people actually gather and access services.

Among their additions:

• Houses of Worship offering food, shelter, and tutoring.

• General Stores serving as community hubs and digital training sites.

• Public Parks and town greens used by unhoused residents who rely on public Wi-Fi.

• Correctional and Juvenile Facilities providing online education and job training.

• Community Media Centers hosting tech camps and youth programs.

• Public Housing Offices serving low-income families.

Vermont didn't just name these anchors, it justified them with data and community input. Every proposed category was tied to vulnerable populations, practical service delivery, and extensive community feedback gathered through public hearings and stakeholder meetings.

How Much Time Do States Have to Respond?

The NTIA has given states just 90 days to revise their lists of eligible CAIs, creating an tight window for reassessment and reclassification. This fast turnaround places pressure on states to revisit months of stakeholder engagement and potentially exclude institutions they had previously justified through extensive community outreach. With less time and narrower definitions, there's a real risk that critical local anchors could be left out of broadband expansion efforts entirely.

In short, this decision is a setback for state and local responsiveness. SHLB is concerned that a narrower definition of CAIs might leave out exactly the kinds of places where connectivity can make the biggest difference for the most vulnerable Americans.

Read SHLB’s full statement on the NTIA changes here.

If you're a SHLB member, sign up to attend the upcoming webinar on these changes here.

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For any questions related to this blog, please reach out to: sdinesh@shlb.org