The National Governors Association (NGA) last week sent a letter to Federal lawmakers on Capitol Hill outlining key priorities for fiscal year (FY) 2026 and emphasizing broadband access and technology innovation among the most important of those.
The letter, authored by Kentucky Gov. Andy Beshear and South Carolina Gov. Henry McMaster on behalf of NGA, outlines 11 key policy priorities for FY 2026.
“As Co-Chairs of NGA’s Economic Development and Revitalization Task Force, we appreciate the opportunity to share our priorities as your committees continue to shape the [FY26] appropriations bills,” they wrote, emphasizing the importance of Federal investment in technology innovation and broadband deployment to meet state-level needs.
On technology innovation, the governor explained that with “Congress [prioritizing] funding for technology innovation,” governors can “[facilitate] job growth, [support] local economies, and [build] resilient supply chains in our states and territories.”
Notably, the governors advocated strongly “for investments in American manufacturing within the CHIPS and Science Act.”
Specifically, they emphasized the significance of the $52 billion Federal investment in domestic semiconductor research, design, and manufacturing included in the CHIPS Act.
Congress approved the CHIPS and Science Act in 2022, providing up to $52 billion in funding to incentivize semiconductor manufacturers to establish new operations in the United States. President Trump issued an executive order in March consolidating the Commerce Department’s CHIPS Program Office into the newly created United States Investment Accelerator, aiming to smooth the way for foreign and domestic business investments exceeding $1 billion.
On the broadband front, the governors underscored the essential role “reliable and accessible internet connectivity plays in bridging the digital divide.”
“Internet access is essential for telehealth, accessing education and workforce development programs, and connecting the 21st century economy,” the letter reads. “We strongly support the flexibility of Federal programs to achieve the diverse needs of states as they deploy broadband capabilities.”
States’ biggest source of funding for broadband expansion is the Broadband Equity, Access and Deployment (BEAD) program, a $42 billion Federal grant program that aims to connect every American to high-speed internet by funding partnerships to build infrastructure. However, major changes are underway for the BEAD program after Commerce Secretary Howard Lutnick announced plans to scrape Biden-era rules and asked states to resubmit new funding proposals last month.
