New Mexico awards Kit Carson Electric $26.9 million to build 1,035 miles of fiber

New Mexico will allot $26.9 million in federal BEAD money to Kit Carson Electric Cooperative to build high-speed internet infrastructure in the northern part of the state, the New Mexico Office of Broadband Access and Expansion said on October 15, 2026. Yahoo reported the award, which the office called a "major milestone" and the first under the Broadband Equity, Access and Deployment program.

Kit Carson's $40 Million Fiber Build

Kit Carson Electric Cooperative is a member-owned electric distribution cooperative serving Taos, Colfax and Rio Arriba Counties since 1944. The co-op will supply $12 million of its own funds to match the $26.9 million grant, for a $40 million project to connect 4,000 homes, businesses and community institutions in towns between Española and Cimarron.

Kit Carson plans to build 1,035 miles of fiber-optic internet cables in 11 of the region's communities, including Cuba, Peñasco, Chimayó, Eagle Nest, Questa, Velarde and Red River. Of that, 931 miles will be above ground and the rest buried. The project still needs environmental reviews and permitting, which officials expect to be complete by 2030.

Why New Mexico Rescinded Resound's Awards

The state initially provisionally awarded the federal BEAD money to Resound Networks, then rescinded those awards after discovering that an employee at the Texas-based fiber-optic company had defrauded a separate New Mexico grant program. "Our project manager team found evidence of fraud which we investigated," said Jeff Lopez, whom Gov. Michelle Lujan Grisham appointed as head of the New Mexico Office of Broadband Access and Expansion after its creation in 2021.

Jordan Pruett, senior vice president of strategy and regulatory affairs at Resound, defrauded the Connect New Mexico Fund, according to a July 31 default order from OBAE. A $2.6 million and a $2.4 million broadband project "were not substantially complete," the order, signed by Lopez, said. "Due to Resound staff misconduct, fraudulent and/or altered requests for reimbursement were submitted to OBAE," the default order said. Resound repaid the $393,122 in full, Lopez said.

"The employee referenced in the order is no longer employed by Resound," Resound said in an email. "Resound has worked directly with the New Mexico Office of Broadband Access and Expansion through the corrective-action process and remains focused on successfully completing its commitments to expanding broadband access in New Mexico."

Kit Carson's Funding Record

According to akta.pro company records, Kit Carson has four funding rounds on record, including a 2025-10 grant led by the New Mexico Office of Broadband Access and Expansion, a 2025-01 grant of $231 million led by the U.S. Department of Agriculture, a 2024-10 grant of $95.6 million led by the Rural Utilities Service and a 2023-10 grant of $23 million led by the US Department of Energy. The same records list total funding of $349.6 million, with the last round dated 2025-10-20.

What Comes Next For The Project

Kit Carson still needs to complete environmental reviews and permitting for the fiber build, which officials expect to be finished by 2030. In May, the OBAE handed the results of its investigation to various state and federal agencies, and Lopez said his office made a criminal referral on the matter to the New Mexico Department of Justice.