With an unprecedented amount of federal funds to build broadband networks flowing into individual states, lawmakers in some states are doing the bidding of the big monopoly Internet Service Providers and potentially blowing a once-in-a-generation chance to invest in the locally-accountable infrastructure that offers the best chance to bridge the broadband gap for millions of families once and for all.  

Two weeks ago we wrote about the anti-competition broadband legislation making its way through the State Legislatures in Illinois and New York as state lawmakers across the nation establish high-speed Internet grant programs.

That trend looks like it’s continuing in Michigan where Democratic Gov. Gretchen Whitmer and the state’s GOP-dominated Legislature recently reached a deal to pass a nearly $5 billion spending bill.

While the “Building Michigan Together Plan” is being “celebrated” by the governor’s office as a way to “grow the economy, create jobs, and benefit families in every region of the state,” the main supplemental spending bill, known as Senate Bill 565 (SB 565), may sink some hope community broadband advocates have for leveraging the windfall of federal funds the Great Lakes State is getting from the American Rescue Plan Act (ARPA) and the forthcoming funds in the Infrastructure Investment & Jobs Act (IIJA).

Protecting Incumbents from Competition

The legislation allocates nearly $251 million for a statewide broadband grant program to be overseen by the newly created Michigan High-Speed Internet Office (MIHI), a subdivision of the state’s Department of Labor and Economic Opportunity (LEO). But, buried in Section 359 of the bill, paragraph (3), it stipulates that Michigan's “infrastructure grants must only be allocated...

A recently announced $610,000 grant award from the Tennessee Valley Authority to a partnership in Chattanooga, Tennessee will fund a pilot project to fund a set of holistic interventions in the Orchard Knob neighborhood to create healthier, more cost-efficient, better-connected homes for 1,000 residents.

The initiative, driven by a coalition made up of the Enterprise Center, EPB Fiber, Parkridge Health System, Habitat for Humanity, Tech Goes Home, and the Orchard Knob Neighborhood Association, aims to tackling an array of social determinants of health all at once. From The Chattanoogan:

Together, the partners plan to simultaneously invest in infrastructure and test new strategies for improving social determinants of health and quality of life of residents within a historically underserved neighborhood. Ultimately, the program in Orchard Knob will serve as a model for other communities across the Tennessee Valley.

It's happening as a result of funds contributed by the TVA's Connected Communities initiative, which aims to help "communities within the Valley leverage tech- and data-driven solutions to improve residents’ lives, deliver environmental benefits and scale economic opportunities." So far, these include projects like outfitting the Cheatham County School District with a solar array and battery backup, technology upgrades at more than a dozen Knoxville Recreation Centers, and improved connectivity at public housing sites in Murfreesboro.

Neighborhood-wide Wi-Fi will be installed, resident's homes will be retrofitted with upgraded HVAC systems and energy efficiency upgrades, EPB's fast and reliable Internet service will be extended, devices and digital literacy training will be given out, and 1,0000 telehealth visits will be scheduled all in the hopes of improving outcomes there. 

Orchard Knob is a predominantly Black community with a much higher population density, lower median household income, lower home ownership rates, and older homes. The TVA grant will be matched by more than $260,000 in local...

Now that the fight over federal funding to expand broadband access has been largely settled with the passage of the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA), states and local communities are preparing to put those funds to work.

The Biden Administration had initially hoped to tip the scales in favor of building publicly-owned broadband networks as the best way to boost local (more affordable) Internet choice, and inject competition into a market dominated by monopoly incumbents. And while the Treasury rules on how Rescue Plan money can be spent does give states and local governments the ability to do just that, the rules for how the IIJA’s Broadband Equity, Access, and Deployment (BEAD) program can be spent have yet to be finalized by the National Telecommunications and Information Administration (NTIA), the agency in charge of allocating those funds to the states.

Predictably, the big monopoly incumbents are focusing their lobbying efforts on state lawmakers as states funnel those federal funds into state broadband grant programs. In some states, Big Telco is getting the desired result: the shunning of publicly-owned network proposals to shield monopoly providers from competition. Of course, we expected some states – especially those with preemption laws that either erect barriers to municipal broadband or outright ban such networks – to shovel most of their federal broadband funds to the big incumbents, even though they have a long track record of over-promising and under-delivering. 

But while we might expect Florida and Texas to favor the private sector and stealthily move to shut out projects that are publicly-owned, we’re surprised that the first place it’s happening is actually Illinois and New York.

Illinois Lawmakers Thumb Nose at Federal Law

In January,...

Buoyed by an explosion in new grants and the recent elimination of state restrictions on community broadband deployments, Washington State is awash in freshly-funded local broadband proposals that should go a long way toward shoring up affordable Internet access across the Pacific Northwest. 

In addition to Covid relief and various state grants, thirteen Washington State counties, ports and Tribal associations recently received $145 million in Broadband Infrastructure Acceleration grants aimed at boosting Internet access and affordability statewide. It’s the first tranche of $260 million planned for new infrastructure, and particularly exciting because it looks like nearly all of the funds went to community-led endeavors, with many of the newly built networks operated by local governments. Some projects will result in partnerships with locally rooted providers.

“Infrastructure is the foundation for digital equity,” Washington Commerce Director Lisa Brown said of the funding. “Washington state’s goal is to ensure all of our residents have access to affordable high-speed internet, as well as the devices, skills and confidence needed to connect with critical resources.”

State leaders say they received more than $413 million-worth of requests for 36 different projects, and have shared both a list and a map of all approved grants online. 

Essential Aid for Existing Projects

The funds will be a welcome boon for many Washington State Tribal regions, including the Confederated Tribes of the Colville Reservation, which won $4.1 million to help expand fiber access along Highway 155 between Nespelem and Omak, Washington—as well as a project recently profiled by ILSR designed to provide...