The Cost of Inaction.
Pennsylvania's broken broadband governance is leaving hundreds of millions of federal dollars on the table — while over 130,000 locations remain unconnected and 2 million households can't afford service.
130,000+
locations in Pennsylvania lacking broadband access
~2M
Pennsylvania households unable to afford broadband service
$449M
in federal BEAD funding left unallocated by the state
The Problems
Pennsylvania's failure to achieve digital equity is primarily the result of governance shortcomings perpetuating technological limitations. Despite receiving $1.16 billion in federal BEAD funding, the state has chosen to allocate only $711 million — leaving hundreds of millions of dollars unspent. The report identifies four interrelated policy failures:
Municipal Broadband Restrictions
State law continues to restrict municipal broadband, limiting competition and local innovation while privileging incumbent providers.
Over-Reliance on Satellite
The state has leaned on lower-cost, less reliable technologies like satellite broadband rather than prioritizing long-term fiber infrastructure investments.
PBDA Accountability Failures
The Pennsylvania Broadband Development Authority has not pursued legal remedies to recover tens of millions in lost Digital Equity Act funding, and lacks a clear strategy for non-deployment funds.
Mapping Deficiencies
Deficiencies in broadband mapping and data collection have likely resulted in the undercounting of unserved areas, potentially costing the state significant federal resources.
What Pennsylvania Must Do
To close the digital divide, Pennsylvania must adopt a coordinated, long-term strategy grounded in transparency, accountability, and sustained investment. The report identifies eight key actions:
Make PBDA Permanent
Eliminate the 2031 sunset provision to ensure continuity and long-term planning capacity for Pennsylvania's broadband authority.
Increase Transparency & Accountability
Reform broadband decision-making processes to rebuild public trust and improve how resources are allocated across the Commonwealth.
Aggressively Pursue Federal Funding
Challenge the rescission of Digital Equity Act funds and secure access to non-deployment funds before they are lost.
Plan for Non-Deployment Funds
Develop a clear strategy for directing non-deployment funds toward affordability programs, workforce development, digital literacy, and device access.
Invest State-Level Resources
Complement federal funding with sustained state investment in broadband initiatives, following models established by neighboring states.
Remove Municipal Broadband Barriers
Repeal or reform state restrictions on municipal and community broadband to foster competition, innovation, and locally responsive solutions.
Prioritize Fiber Infrastructure
Choose long-term, reliable infrastructure like fiber over short-term, lower-cost technologies that will not meet future demands for speed and scalability.
Align Infrastructure with Adoption
Integrate affordability, digital literacy, and workforce programs into broadband policy — building infrastructure is not enough without ensuring people can use it.
Read the full report.
Published by the Pennsylvania Broadband Research (PBR) Institute in partnership with MIC Center at the University of Pennsylvania and Penn State's Bellisario College of Communications.
PBR Institute · 2026