Blab AI
New Mexico Seeks to Finish Broadband Rollout Amid Funding and AI Regulation Concerns
New Mexico is poised to unlock the final stretch of high‑speed internet for its residents, but federal guidance and a Trump‑era AI law could be the deciding factors.
The state’s Office of Broadband Access and Expansion plans to deploy $675 million of federal broadband funding to connect the handful of households that remain unserved, many of which belong to tribal communities. The money comes from the Broadband Equity, Access, and Deployment (BEAD) program, a 2021 Infrastructure Investment and Jobs Act initiative that aims to bring affordable, reliable broadband to underserved areas by 2030.
While broadband penetration in New Mexico climbed from 73 % of households in 2021 to 91 % in 2024, a small number of homes still lack service. A significant portion of the BEAD grant—$111 million—has been earmarked for the Navajo Nation, the largest single allocation in the state. The remote geography of the Navajo Nation and the presence of numerous Pueblos and other tribes make broadband infrastructure costly, the office noted. At the same time, 43 % of the total BEAD funding—$293 million—has not yet been released.
In March, the office formally requested that the National Telecommunications and Information Administration (NTIA) release the non‑deployment funds that are earmarked for projects supporting broadband deployment but do not involve direct infrastructure spending. The state intends to use those funds for workforce development and to connect community institutions such as schools and libraries. The request comes amid broader uncertainty across states about how to allocate non‑deployment money.
A potential hurdle looms from a December 2025 executive order issued by former President Donald Trump, which directs the administration to identify state laws that the federal government considers “onerous” in the context of artificial intelligence. States that have such laws could become ineligible for non‑deployment funds. The office’s review, conducted in the same month, found no New Mexico laws that would conflict with the order, and the office said it could provide guidance on AI legislation in future sessions.
Representative Tara Lujan, a Democrat from Santa Fe, said that the committee’s work on AI legislation would be useful before the next legislative session. She added that the state does not want to limit its ability to invest in broadband, but that more information would help lawmakers make informed decisions.
The federal government’s ability to reclaim appropriated money remains a possibility, especially under the Trump administration, but the BEAD program is considered less vulnerable because it was enacted as part of a bipartisan infrastructure law. The office notes that the program’s funding is protected by that legislation.
At present, New Mexico is awaiting further guidance from NTIA on the release of non‑deployment funds and monitoring the impact of the Trump executive order on state AI regulation. The state’s broadband office will continue to work with federal agencies to ensure that the remaining households, particularly those in tribal areas, receive high‑speed internet before the 2030 deadline.
The state’s Office of Broadband Access and Expansion plans to deploy $675 million of federal broadband funding to connect the handful of households that remain unserved, many of which belong to tribal communities. The money comes from the Broadband Equity, Access, and Deployment (BEAD) program, a 2021 Infrastructure Investment and Jobs Act initiative that aims to bring affordable, reliable broadband to underserved areas by 2030.
While broadband penetration in New Mexico climbed from 73 % of households in 2021 to 91 % in 2024, a small number of homes still lack service. A significant portion of the BEAD grant—$111 million—has been earmarked for the Navajo Nation, the largest single allocation in the state. The remote geography of the Navajo Nation and the presence of numerous Pueblos and other tribes make broadband infrastructure costly, the office noted. At the same time, 43 % of the total BEAD funding—$293 million—has not yet been released.
In March, the office formally requested that the National Telecommunications and Information Administration (NTIA) release the non‑deployment funds that are earmarked for projects supporting broadband deployment but do not involve direct infrastructure spending. The state intends to use those funds for workforce development and to connect community institutions such as schools and libraries. The request comes amid broader uncertainty across states about how to allocate non‑deployment money.
A potential hurdle looms from a December 2025 executive order issued by former President Donald Trump, which directs the administration to identify state laws that the federal government considers “onerous” in the context of artificial intelligence. States that have such laws could become ineligible for non‑deployment funds. The office’s review, conducted in the same month, found no New Mexico laws that would conflict with the order, and the office said it could provide guidance on AI legislation in future sessions.
Representative Tara Lujan, a Democrat from Santa Fe, said that the committee’s work on AI legislation would be useful before the next legislative session. She added that the state does not want to limit its ability to invest in broadband, but that more information would help lawmakers make informed decisions.
The federal government’s ability to reclaim appropriated money remains a possibility, especially under the Trump administration, but the BEAD program is considered less vulnerable because it was enacted as part of a bipartisan infrastructure law. The office notes that the program’s funding is protected by that legislation.
At present, New Mexico is awaiting further guidance from NTIA on the release of non‑deployment funds and monitoring the impact of the Trump executive order on state AI regulation. The state’s broadband office will continue to work with federal agencies to ensure that the remaining households, particularly those in tribal areas, receive high‑speed internet before the 2030 deadline.
