Senate Stimulus Compromise Cuts $2 billion from original Senate broadband investment plan

The Collins-Nelson Amendment to the original Senate version of the American Recovery and Reinvestment Plan was released this weekend, including $7 billion in broadband investment. The compromise bill -- which has been accepted by the Senate Democratic leadership -- cuts broadband spending by $2 billion from the amount in the original Senate economic stimulus, but still is more generous than the $6 billion in the bill passed by the House of Representatives last month.

The Senate Broadband provisions fund grants to public-private partnerships, state and local governments and non-profits with the purpose of deploying broadband in unserved and underserved areas and increasing adoption rates.

The grants will be administered by the National Telecommunications and Information Administration and require a 20 percent match. At least 50 percent of the funding must go to rural areas.

Of the $7 billion total available, $250 million is allocated to increase adoption rates, $200 million for upgrading technology and capacity at community computing centers such as libraries and community colleges, and $350 million for funding the Broadband Data Improvement Act. An additional $100 million is included for the Department of Agriculture Rural Utilities Service's distance learning and telemedicine broadband loans and grants program.

In addition, the Senate bill provides temporary, targeted tax credits for investment in rural broadband deployment.

Substitute Amendment to HR1 - Collins Nelson Amendment (U.S. Senate)

Proposed Economic Stimulus Plan Includes $6 Billion for Broadband (Speed Matters)

President Bush signs Broadband Data Improvement Act (Speed Matters)

Rural Development Distance Learning and Telemedicine Program (USDA)