Commerce Sec. Lutnick testifies before lawmakers on broadband deployment funding — 2/10/2026
Watch on YouTube ↗  |  February 10, 2026 at 17:00 UTC  |  1:52:05  |  CNBC
Speakers
Howard Lutnick — Secretary of Commerce
Senator Moran — Senator
Senator Shaheen — Senator
Senator Kennedy — Senator
Senator Coons — Senator
Senator Merkley — Senator
Senator Fischer — Senator
Senator Peters — Senator
Senator Reed — Senator
Senator Van Hollen — Senator
Senator Murkowski — Senator

Summary

  • Broadband Efficiency Shock: Secretary Lutnick reveals the BEAD program will cover all targeted US households for $21 billion less than the appropriated amount, driven by a shift from "fiber-only" to a technology-neutral mix (Fixed Wireless/Satellite).
  • Unspent Stimulus Pivot: A major political battle is forming over the remaining $21 billion surplus. Senators are pushing to retain funds within states for "non-deployment" uses like precision agriculture, cybersecurity, and public safety, rather than returning it to the Treasury.
  • Weak Dollar Policy: Lutnick explicitly defends the 10% drop in the US Dollar as "natural" and beneficial for exports, predicting a manufacturing boom in 2026. He frames a strong dollar as a manipulation that hurt US industry.
  • AI Chip Export Controls: The Commerce Department confirms strict enforcement of export controls to China, prioritizing US demand (specifically citing Nvidia) over foreign sales, despite industry pressure.
  • Crypto Regulation: Lutnick agrees that stablecoins (specifically Tether) should be audited, signaling potential regulatory tightening on non-compliant/offshore issuers under the "Genius Act."
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Howard Lutnick
Secretary of Commerce
Lutnick highlights Kansas's broadband plan, noting they achieved coverage with "67% fixed wireless" and only "29.5% fiber," calling it the "best performing service" for the price. The federal government is officially validating Fixed Wireless Access (FWA) as a primary solution for rural broadband, moving away from the previous administration's fiber-optic obsession. This reduces capex pressure on fiber builds and validates the business model of FWA providers. LONG T-Mobile (leader in 5G Home Internet/FWA) as the primary beneficiary of federal grant dollars shifting toward wireless solutions. Capacity constraints on 5G networks in rural areas.
DE
LONG Senator Fischer
Senator, United States Senate
Senator Fischer urges Lutnick to allow "precision agriculture connectivity" to be an eligible use for the $20B+ in unspent BEAD funds. Lutnick agrees to "spend time together learning it." With deployment costs coming in $21B under budget, the surplus capital must go somewhere. "Precision Ag" is a bipartisan, high-utility way to spend that money, directly subsidizing the connectivity hardware and software ecosystems dominated by Deere. LONG Deere & Company as the primary beneficiary of subsidized rural connectivity for farming equipment. Treasury claws back the unspent funds instead of reallocating them.
LONG Senator Fischer
Senator, United States Senate
Senator Fischer suggests "cyber security" as a key area for the unspent BEAD funds, noting the threats businesses and communities face. Lutnick is receptive to "best ideas" for the surplus. Shifting infrastructure funds from physical cables to digital security represents a massive new government TAM for cybersecurity firms. If states are allowed to spend broadband surplus on "securing" the network, it flows to top-tier vendors. LONG Palo Alto Networks and CrowdStrike as recipients of state-level federal grants for municipal and critical infrastructure security. Bureaucratic delays in approving "non-deployment" use cases.
LONG Howard Lutnick
Secretary of Commerce
Lutnick notes that for some states (like New Hampshire), satellite was 21.5% of the solution, and explicitly states, "Sometimes satellite... works best." While Lutnick rejected SpaceX's specific "rider" demands, the admission that satellite is essential for 20%+ of difficult terrain (vs. 0% in pure fiber plans) cements LEO satellite internet as critical infrastructure eligible for federal funding. LONG SpaceX (via private markets or closed-end funds) as they secure a permanent slice of the $42B BEAD pie. Regulatory friction regarding service terms (the "rider" dispute mentioned by Shaheen). 18:28
LONG Howard Lutnick
Secretary of Commerce
When asked about Tether, Lutnick states, "I believe US dollar backed stablecoins should be fully audited." Senator Reed criticizes the "Genius Act" loopholes for unaudited offshore coins. The administration is signaling a crackdown on offshore/unaudited stablecoins (Tether) while favoring regulated, audited US alternatives. This regulatory moat favors compliant US-based crypto infrastructure. LONG Coinbase (issuer of USDC, the compliant alternative) as regulatory pressure mounts on Tether. Over-regulation stifling the broader crypto market. 57:39
LONG Senator Coons
Senator, US Senate
Senator Coons quotes Nvidia's CEO saying demand is "incredibly great" and that US companies are "compute constrained." Lutnick confirms Commerce will not let exports hinder US companies getting chips. The government is effectively guaranteeing that US demand will absorb 100% of supply, removing the risk of an inventory glut if China exports are blocked. The "America First" allocation policy ensures Nvidia's order book remains full domestically. LONG Nvidia on confirmed, government-protected domestic demand that exceeds supply. Total ban on sales to China impacting long-term revenue growth. 30:15
CAT /GE
LONG Howard Lutnick
Secretary of Commerce
Lutnick defends the weakening dollar (down 10%) as a correction that aids exports, stating, "We are exporting more... that's why our GDP has grown." He predicts "enormous manufacturing job growth." A Commerce Secretary explicitly endorsing a weaker dollar is a green light for large US exporters. A cheaper dollar makes American heavy machinery and engines more competitive globally against foreign rivals. LONG Industrials (Caterpillar, GE) that benefit from FX tailwinds and pro-manufacturing trade policies. Inflationary pressure from import costs (tariffs).
AVOID Senator Coons
Senator, US Senate
Senator Coons cites tariffs on lumber, drywall, and cabinets raising the cost of a new home by "$17,000." Lutnick responds that to have domestic industry, "you have to protect furniture makers." The administration is prioritizing protectionist tariffs over lowering construction costs. This creates a margin squeeze for homebuilders who face higher input costs but may not be able to pass them on to consumers already stretched by rates/prices. AVOID Homebuilders due to persistent input cost inflation driven by trade policy. Housing shortage demand overwhelms cost concerns.