The National Telecommunications and Information Administration (NTIA) has announced a conditional waiver for the Broadband Equity, Access, and Deployment (BEAD) Program. This waiver modifies certain letter of credit requirements for subgrantees. Specifically, BEAD Program subgrantees will no longer be required to obtain a letter of credit from a U.S. bank with a Weiss ratings of B- or better.
Consistently with recent FCC rule changes, NTIA will allow financial institutions rated BBB- or higher by Nationally Recognized Statistical Rating Organizations (NRSROs) to issue letters of credit for the BEAD program. The waiver aims to provide flexibility and ensure the best interest of the federal government by eliminating the Weiss ratings requirement for credit unions and allowing qualifying NRSRO rated banks to participate. This rule change will become effective August 24, 2025.
