Broadband Stimulus Summary

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Broadband Stimulus – A $7.2 Billion Opportunity

Overview of the Broadband Stimulus Legislation

The American Recovery and Reinvestment Act of 2009 -- the economic stimulus bill -- allocates $7.2 billion for broadband grants. The funding is split between two federal agencies.

  • NTIA. $4.7 billion administered by the National Telecommunications and Information Administration (NTIA) in the Department of Commerce
  • RUS. $2.5 billion administered by the Rural Utilities Service (RUS) of the Department of Agriculture.

The two agencies will coordinate grantmaking, although the details are still being determined.

The agencies are hosting six public roundtables in March to get guidance on the rules and priorities for the grant programs. (link). The agencies are seeking written comments, which will be accepted through April 13, 2009. (http://www.ntia.doc.gov/broadbandgrants/

NTIA Broadband Technology Opportunities Program

The $4.7 NTIA billion program will provide grants for these purposes:

  • Broadband mapping and community technology planning teams. The legislation allocates up to $350 million to implement the Broadband Data Improvement Act (Public Law 110-385). States can apply for grants to fund 80 percent of the cost to map broadband infrastructure, survey barriers to broadband adoption, and set up state public-private partnerships and community technology planning teams. States like Ohio, KY, TN, and Minnesota have pioneered this approach.

  • Build-out of broadband infrastructure to unserved and underserved areas. The NTIA and RUS will define these terms in the final rules.
  • Build-out of networks connecting public and non-profit organizations. This could include networks linking rural health centers, schools, community colleges, community centers, job training centers, senior centers, and other community anchor institutions.
  • Programs that expand public computer capacity, including libraries, community colleges, and other community institutions. Not less than $200 million is allocated for this purpose.
  • Programs to encourage sustainable adoption of broadband service. Not less than $250 million is allocated for this purpose. This can include programs to encourage digital literacy and awareness; programs that provide broadband access, equipment, and support to low-income, unemployed, aged, and other vulnerable populations.

    Other requirements for NTIA broadband grants:

    • The grant recipient must put up 20 percent matching funds.
    • Eligible entities include state and local governments; non-profit organizations; and broadband service providers that the NTIA determines by rule serve the “public interest.”
    • There must be at least 1 grant in every state.
    • Grant recipients must meet “non-discrimination and network interconnection” obligations. The NTIA will determine by rule what this means.
    • Grants must be awarded by the end of fiscal year 2010. Grant recipients must spend the money within two years.
    • Infrastructure deployment grants will be evaluated on criteria that look at connection speed, population served, affordability, and prioritize health care, education, and children. The projects should stimulate economic growth and job creation.

    RUS Broadband Program

    The $2.5 billion RUS program may be provided as grants, loans, or loan guarantees for broadband infrastructure. At least 75 percent of the area to be served must be in a rural area without sufficient access to broadband to facilitate rural economic development. Priority goes to projects that deliver end users a choice of broadband service provider; serve the highest proportion of rural residents with no broadband; and are provided by companies that have previously received RUS funding. Grant applicants cannot receive funds for the same project from RUS and NTIA.

    Timeline

    The NTIA and RUS have provided a very rough projection of dates for grant applications.  They currently expect that there will be three deadlines for grant applications, with about one-third of available funds allocated each time. We emphasize that these are not confirmed dates. Final dates should be announced when the NTIA and RUS issue their first Notice of Fund Availability. The rules for the program will be issued at that time also.

    April 13, 2009 - Written comments from the public are due on the questions posed by the agencies regarding the rules governing the Broadband Technology Opportunities Program and RUS Broadband grant program. (link)

    Sometime between April – June 2009 - First Notice of Availability of Funds for grant applications

    Sometime between Oct – December 2009 - Second Notice of Availability of Funds for grant applications

    Sometime between April – June 20010 - Third Notice of Availability of Funds for grant applications

    We also recommend you consult the CWA publication, State Broadband Initiatives, available as an online searchable database at http://www.speedmatters.org/content/statepolicy to see what your state has already done and what other states have done.