With American Rescue Plan funds flowing into state government coffers, about a third of the nation’s 50 states have announced what portion of their Rescue Plan dollars are being devoted to expanding access to high-speed Internet connectivity.

The federal legislation included $350 billion for states to spend on water, sewer, and broadband infrastructure, though everything we have seen suggests that the vast majority of that will not go to broadband. There is also another $10 billion pot of rescue plan funds, called the Capital Projects Fund, that mostly must be used to expand access to broadband.

Laboratories of Broadband-ification 

As expected, each state is taking their own approach. California is making a gigantic investment in middle-mile infrastructure and support for local Internet solutions while Maryland is making one of the biggest investments in municipal broadband of any other state in the nation. And although Colorado does not prioritize community-driven initiatives, state lawmakers there have earmarked $20 million for Colorado’s two federally-recognized Indian tribes to deploy broadband infrastructure with another $15 million devoted to boosting telehealth services in the state.     

Undoubtedly, individual states’ funding priorities vary. Some states may be relying on previously allocated federal investments to boost broadband initiatives and/or have been persuaded the private sector alone will suffice in solving its connectivity challenges. And in some states, such as Illinois, Minnesota, and Maine, lawmakers have prioritized using state funds to support broadband expansion efforts while other states may be waiting on the infrastructure bill now making its way through Congress before making major broadband funding decisions.

As of this writing, 17 states have earmarked a portion of their Rescue Plan money (totaling about $7.6 billion) to address the digital divide within their borders. Those states are Arizona, Arkansas, California, Colorado, Delaware, Hawaii, Indiana, Kentucky, Maine, Maryland, Montana, Missouri, Virginia, Tennessee, Vermont, Washington, and Wisconsin.

A handful of those states are making major investments to boost broadband with an emphasis on community-driven solutions where local governments, public entities, and non-profit organizations can...

In years past, states have implemented preemptive laws that make it more difficult or impossible for communities to build their own Internet networks. 

These state barriers were often enacted at the behest of large telecom monopolies to limit competition, and include everything from outright bans on municipal broadband networks to oppressive restrictions and requirements which create legal uncertainty for communities attempting to offer telecommunications and Internet services, including via partnerships.

When the Covid-19 pandemic hit the United States in March 2020, there were 19 states maintaining significant restrictions on municipal networks. Today, the number of states upholding these barriers has been reduced to 17. The pandemic served as a turning point in the fight for local authority, and in the past year, Arkansas and Washington adopted legislation significantly rolling back legislative barriers on publicly owned broadband networks. 

In February of 2021, both chambers of the Republican-dominated Arkansas State Legislature voted unanimously to send Senate Bill 74 to State Governor Asa Hutchinson, who signed the bill into law. The legislation grants government entities the authority to provide broadband services and expands the financing options available to municipalities to fund municipal broadband projects.

In May of 2021, Washington State Governor Jay Inslee signed two bills expanding municipal authority to provide retail Internet services to end-users, House Bill 1336 and Senate Bill 5383. Both bills reduce barriers to municipal networks, but House Bill 1336, which completely removes all previously-held restrictions on public broadband in the state of Washington, is expected to take legal precedence.

The recent progress made by Arkansas and Washington is extremely timely as more federal, state, and local funding is...

Snapshot

New Jersey establishes state committee to strategize deployment of community broadband networks

Louisiana Senate amends bill, opening state grant program to municipally-owned providers

Washington laws expanding municipal authority to provide retail service take effect

The State Scene

New Jersey 

New Jersey Governor Phil Murphy, on July 7, enacted legislation (A.B. 850) establishing a new state committee tasked with evaluating where community broadband networks should be established across the state, by surveying areas where public networks would be most feasible to deploy.

The 19-member Broadband Access Study Commission “will consider the logistics of deploying community broadband networks and report on its findings to the Governor and the Legislature,” reports ROI NJ. “The mission includes completing a comprehensive study of the success and failures of similar networks around the nation, the costs of constructing and maintaining networks, and the costs to subscribers for monthly access.” 

The Commission will also evaluate impediments to broadband access in the state, including those related to physical access, affordability, and digital literacy. After submitting recommendations to the state Governor and Legislature, the committee will dissolve within a year of its first meeting. 

Louisiana 

Louisiana Governor John Bel Edwards recently signed a bill (H.B. 648) allocating $180 million of incoming federal relief funds toward establishing a grant program - open to both public and private broadband providers - aimed at jumpstarting the buildout of Internet infrastructure to unserved communities across the Bayou State. 

Before the bill passed the Louisiana Senate, it was amended to remove an exclusion that would have required local governments using the grants to contract with...

Update: State Governor Jay Inslee signing two bills amending the same section of state law at the exact same time forced the Washington Secretary of State to seek judicial guidance on which bill will take precedence over the other in the face of legal challenge. It is still unclear if the two bills are compatible; however, in these instances the bills should be filed in the order in which they passed the State Legislature, with the bill filed last taking legal precedence. The Public Broadband Act passed the State Legislature one day after S.B. 5383; therefore, the Public Broadband Act should prevail over the Senate bill (S.B. 5383).

Yesterday, following weeks of anticipation, State Gov. Jay Islee signed the Public Broadband Act (H.B. 1336), removing all restrictions on public broadband in the state of Washington, according to the bill’s primary sponsor, State Rep. Drew Hansen, D-23. This critical leap forward in Washington drops the number of states with laws restricting community broadband to 17.  

Rep. Hansen’s tweet announcing the passage of H.B. 1336:

BREAKING: Governor Inslee just signed my Public Broadband Act so we have ENDED ALL RESTRICTIONS ON PUBLIC BROADBAND IN WASHINGTON STATE!!

Next step: contact your local gov’ts (utility districts, ports, counties, etc.) & tell them you want public broadband.

LET’S GO GET IT!!

— Rep. Drew Hansen (@RepDrewHansen) May 13, 2021

The bill grants public entities previously restricted by statute from offering retail telecommunications services the unrestricted authority to provide Internet services to end-users. This includes Public Utility Districts (PUDs) and district ports, as well as, towns, second-class cities (defined as those with populations of 1500 or more which have not adopted a city charter) and counties, currently not operating under Washington’s Optional Municipal Code. (Washington’s charter counties, first-class cities...