Arkansas Wins Billion Dollar Boost in Its Drive for Better Connectivity

Arkansas’ long-running effort to bring modern internet service to every corner of the state has taken a major step forward. Federal officials at the United States Department of Commerce have approved the state’s final proposal for a sweeping broadband expansion plan, clearing the way for one of the largest infrastructure investments in recent Arkansas history.

The approval came from the National Telecommunications and Information Administration, known as NTIA, which oversees the Broadband, Equity, Access, and Deployment program. Through BEAD, Arkansas will receive $1.024 billion to extend broadband service to more than 79,000 homes and businesses, a scale of work state officials say could reshape daily life in communities that have waited years for reliable internet.

The Arkansas State Broadband Office, known as ARConnect, will direct the initiative and determine how funding is distributed across the state. Before construction can begin, the National Institute of Standards and Technology must review the state’s budget for the program. Once that review is complete and the Arkansas General Assembly approves the appropriation, ARConnect expects construction to start in the second quarter of 2026.

A Significant Step for Arkansas Broadband

Participation in the BEAD program is one of the newest efforts to widen broadband access across Arkansas, especially in rural communities. In 2019, former Governor Asa Hutchinson created the state’s broadband office, which is charged with eliminating the digital divide in Arkansas by 2028, according to its website. Millions of dollars have already been invested in this work, yet some lawmakers, including Rep. Frances Cavenaugh, R-Walnut Ridge, continue to express frustration with the pace of progress.

The BEAD program is a $42.45 billion federal initiative created under the Biden administration’s Infrastructure Investment and Jobs Act of 2021. The law established a national grant program to expand high speed internet service. Tensions rose during the Trump administration after program changes disqualified hundreds of thousands of locations from receiving internet access, according to Stateline. The program’s current technology neutral approach sends a significant share of funding to satellite internet providers, which cost less to deploy but often deliver less consistent service than underground fiber optic networks. Even so, the newly awarded funding is widely seen as an important step toward expanding internet access across the state.

So far, Arkansas has spent more than $500 million on broadband, not including any BEAD funding. The program is expected to reach more than 79,000 locations. Determining how much of the state already has broadband access remains difficult, since more than 200,000 locations have received grants that are not overseen by ARConnect. This leaves state officials without a complete picture of how those projects are progressing.

Changes in Provider Lists and Funding

In its federal proposal, the Arkansas State Broadband Office reported receiving 730 applications from 33 internet service providers, with 23 selected for preliminary awards. The broadband office website now lists only 20 providers. AREON and Conway Corp. are no longer included, and the twenty-third provider was never listed.

Arkansas has reduced its BEAD plan by $700 million in this round. The updated list also shows declines in served locations, grant amounts, and sub-projects. Since September 10, the total value of Arkansas broadband grants has dropped by nearly $3 million, from $308.33 million to $305.49 million. Served locations decreased from 79,240 to 79,228, and sub-projects fell from 229 to 217.

Most of the decrease is tied to a $2 million reduction for Premier Holdings LLC of Hope. Its award fell from $20.83 million to $18.56 million, and it lost one sub-project, reducing served locations from 1,779 to 1,695. Texhoma Fiber LLC of Lawton, Oklahoma, saw its proposed grant decline by about $600,000, while AT&T’s award decreased by roughly $40,000.

One award increased. Amazon Kuiper Commercial Services LLC, an Amazon subsidiary offering low Earth orbit satellite service, saw its grant rise from $1.72 million to $1.77 million.

Reactions from State and Federal Leaders

State leaders welcomed the decision to award the broadband funding. State Broadband Director Glen Howie said Arkansas is proud to remain among the national leaders in the program and to be part of the first wave of provisional grant approvals. He said the approval brings the state closer to putting shovels in the ground and connecting Arkansans who still lack reliable service.

United States Secretary of Commerce Howard Lutnick said that by removing unnecessary rules and requirements, taxpayers will save billions while the nation expands high speed broadband through a broad range of technologies. He said the BEAD program is delivering what he called the Benefit of the Bargain by focusing on the needs of the American people.

Governor Sarah Sanders said Arkansas’ low cost of living and fast growing economy continue to attract new residents, and they deserve faster and more dependable broadband. She said support from Secretary Lutnick, NTIA Administrator Roth, and the Department of Commerce will help Arkansas extend broadband access to tens of thousands of homes and businesses, building momentum that will drive the state’s growth for years to come.

Lawmakers Demand Transparency

During last Tuesday’s meeting of the Arkansas Legislative Council Review Subcommittee, Cavenaugh, who serves as co chair, raised concerns about a request to amend an existing contract with the Boston Consulting Group, which helps administer the BEAD program and supports ARConnect. The proposed amendment would extend the contract from 2026 to 2029 and add $29.7 million in costs, all covered by federal funds, according to committee documents.

Cavenaugh voiced frustration that she still could not get a clear answer on how much of Arkansas currently has broadband access. She said the state has been “throwing money at this now forever” and noted that parts of her Northeast Arkansas district remain without service.

She also said she had heard that some providers were causing projects to stall. Cavenaugh asked Howie for specifics on how the state is responding when providers fail to meet their contract obligations and what it costs to address those problems.

“There are a lot of problems in the broadband space, and we are not getting a full picture of what is happening,” Cavenaugh said. “I am asking for transparency because there is none, and we are spending $30 million on someone to help us with that. It is mindboggling.”

The subcommittee approved her motion to place a hold on the broadband contract so she could gather more information. Her co-chair, Corning Republican Senator Blake Johnson, later announced during Friday’s Arkansas Legislative Council meeting that the hold had been lifted, and lawmakers approved the contract.

Looking Ahead

ARConnect described NTIA’s approval of the final proposal as a “Pivotal next step” in securing Arkansas’ BEAD grant funding. Once the program is fully implemented, Arkansans will see a mix of technologies brought online. State officials report that 76 percent of locations will be connected through fiber, 16 percent through low Earth orbit satellite service, 7 percent through licensed fixed wireless, and 1 percent through hybrid systems. Speeds may vary across these technologies, but internet access will be ensured.