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Nevada Reallocates $52 Million From Rural Broadband Project Before Deadline
State officials redirected the money to other programs after a contractor said some Pahrump-area connections could miss the federal spending deadline.
On Thursday, Nevada pulled $52 million in pandemic relief funds from rural broadband projects as a federal December 31, 2026, deadline looms. The reallocation halts planned connections in the Pahrump area, disrupting statewide high-speed internet expansion efforts.
Contractor Stimulus Inc. determined it could not complete Pahrump connections by the December 31, 2026, deadline due to delays securing utility poles and franchise agreements. The company had planned to use this project as a hub for broader rural expansion.
Assm. Howard Watts criticized the Governor's Office of Science, Information and Technology at an Interim Finance Committee meeting, stating, "This has been clear as mud." Watts alleged previous leadership downplayed risks of this outcome.
Britta Appel, director of the Governor's Office of Science, Information and Technology, called the $52 million redirection a "challenging decision" based on the "totality of the circumstances." Funds now support mental health care in jails, food insecurity programs, and multifamily housing development.
Northern Pahrump faces significant impact, though the state has not identified all "unserved" locations. Officials cited a potential opportunity for second-round Biden-era Broadband Equity, Access, and Deployment funding, though no guarantee exists.