US Senate panel advances Trump nominee to oversee $42-billion government internet fund

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By David Shepardson

WASHINGTON (Reuters) -The U.S. Senate Commerce Committee voted 16-12, largely along party lines on Wednesday, to advance the Trump administration’s nominee to oversee a $42-billion government fund to bring high-speed broadband internet to unserved parts of the U.S.

Arielle Roth, who has been nominated to head the Commerce Department’s National Telecommunications and Information Administration, denied at a Senate hearing last month that she would administer the program to benefit Starlink owner Elon Musk.

Democrats have suggested that Musk, a billionaire and close adviser to President Donald Trump, could receive as much as $20 billion of the funding by eliminating the Broadband Equity, Access, and Deployment (BEAD) program preference for fiber and boosting satellite service.

Democratic Senator John Fetterman, who was originally recorded as voting against Roth, changed his vote to yes later in the hearing.

In March, Commerce Secretary Howard Lutnick said the department had launched a review of the program “to take a tech-neutral approach that is rigorously driven by outcomes, so states can provide internet access for the lowest cost.”

On Tuesday, Democratic Representatives Jasmine Crockett and Gerald Connolly asked the Commerce Department for documents and answers about how the department will ensure Musk is not exploiting the department to benefit himself.

“Starlink, which was previously expected to get roughly $4 billion under this program, could now receive as much as $20 billion under the new rules,” the lawmakers said.

Senate Commerce Committee chair Ted Cruz previously suggested the Biden administration had blacklisted Musk for political reasons. “BEAD desperately needs a revamp,” Cruz said on Wednesday.

Republicans have criticized the program because it was approved in 2021 and has yet to connect any Americans to the internet.

Three states have received approval of their final proposals, four states have completed their selection of internet service providers, and 30 states are in the midst of running application rounds.

Democrats note the Trump administration has not moved state programs forward in the process since retaking the White House in January.

(Reporting by David ShepardsonEditing by Rod Nickel)