In response to the Covid-19 pandemic, Congress and the Biden Administration passed two federal stimulus relief packages with historic levels of funding for programs devoted to advancing digital equity – the American Rescue Plan Act (ARPA) and the Consolidated Appropriations Act (CAA). 

In early August, legislators in the U.S. Senate passed the Infrastructure Investment and Jobs Act, a $1.2 trillion infrastructure package which continues many of the federal programs started by previous relief packages and includes $65 billion more for expanding high-speed Internet infrastructure and connectivity. Members of Congress returned from their summer break on September 20th and U.S. House Representatives are expected to vote on the infrastructure relief bill, which enjoys bipartisan support, on September 30th.

This guide consolidates the different funding opportunities made available through various relief packages to assist communities interested in accessing federal funds to expand broadband infrastructure and digital inclusion services. It updates ILSR’s Community Guide to Broadband Funding released in April of 2021, which describes programs established under ARPA and CAA in more detail, provides additional resources and answers FAQs.

Important upcoming deadlines are bolded throughout this guide. 

Infrastructure Investment and Jobs Act – Pending 

Though the legislation is pending in Congress, the version of the Infrastructure Investment and Jobs Act passed by the U.S. Senate in August of 2021 includes $65 billion for expanding Internet access and digital inclusion initiatives. The Senate bill takes a more holistic approach to addressing the digital divide than previous relief packages, as it includes historic levels of funding for digital skills training. Of the $65 billion:

• $42.5 billion is being issued as block grants to states to fund the deployment of broadband infrastructure in “unserved” and “underserved” parts of the country. Funds can also be utilized to deploy affordable networks...

Congress and the White House are currently managing a handful of different infrastructure proposals which are coming down the pipeline fast. In terms of major legislation, there’s President Biden’s revised $65 billion in funding as part of the American Jobs Plan, the Bridge Act, which would see $40 billion dispensed in state block grants aimed at unserved and poverty-stricken parts of the country, and the LIFT Act, which comes from the 32 Democrats on the House Committee on Energy and Commerce and would allocate $80 billion for infrastructure and another $30 billion for next-generation 911 services and digital inclusion efforts. 

It remains uncertain where we will ultimately land on the above, but a few things are clear: whatever plan we as a country adopt, this is a once-in-a-generation endeavor to upgrade and expand our broadband infrastructure in the name of future-proof, affordable, and universal service. Whatever framework is agreed upon will drive how and where we invest, and those are critical considerations to make.

It’s time for you to reach out to your city, state, and congressional leaders and stress that all of the above can only be achieved when communities are allowed to play an active role in the process. Local challenges require local solutions, especially when it comes to broadband infrastructure. The current marketplace is fundamentally broken, with more than 80 million Americans stuck with just one Internet Service Provider for their home connections: the majority of whom are national monopolies that have spent far more time and money during the last twenty year to protecting their territories so they can continue to extract profits from communities and send them to shareholders thousands of miles away.

Above all else, this means that cities and cooperatives – as trusted, accountable entities which have been delivering basic...

Snapshot

Michigan broadband package repeals law prohibiting state grants from going to government entities

Montana Legislature duplicates federal limitations against schools and library self-constructing networks

U.S. House Republicans bill would give USDA authority over rural broadband, in place of FCC 

The State Scene 

Michigan

Michigan Gov. Gretchen Whitmer issued an executive directive on Wednesday establishing the Michigan High-Speed Internet (MIHI) Office, a new state office tasked with developing a strategy to make high-speed Internet more accessible to Michiganders. 

Gov. Whitmer has argued that more than $2.5 billion in potential economic benefit is left unrealized each year due to a lack of Internet access across the state. MIHI will be housed inside the state’s Department of Labor and Economic Opportunity (LEO). Speaking of the new office, LEO Acting Director Susan Corbin said, “We need to make major investments to support digital inclusion and this office will be focused on leveraging every dollar available through the American Recovery Plan and other federal programs,” reports WILX.

Michigan lawmakers are moving to answer Corbin’s call and recently proposed a $400 million one-time allocation of incoming federal relief funds to the newly created MIHI to work toward expanding access to broadband. With the funds, LEO would be tasked with maintaining a statewide broadband grant program, the Connecting Michigan Communities Broadband Grant. 

The legislative package [pdf] would allow the state to “award grant money to a governmental entity or educational institution or an affiliate or a public/private partnership, to own, purchase, construct, operate, or maintain a communications network.” The legislation calls for prioritizing projects that will provide discounted Internet service to low-income households and projects that “demonstrate collaboration to achieve community investment and...

Join us on Thursday, May 27 at 5pm ET/4pm CT with a special Financing Edition of the Connect This! show, with co-hosts Christopher and Travis Carter (USI Fiber) joined by Doug Dawson (President, CCG Consulting) and Kim McKinley (CMO, UTOPIA Fiber). The group will dive into the numbers and talk about the economics that make networks succeed. They'll talk about the different models to broadband buildouts, types of financing available to municipalities and small private ISPs, grant programs, the factors that drive healthy take rates, and economies of scale.

The show will begin on Thursday, May 27 at 5pm ET/4pm CT.

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