Applicants in the first round of the U.S. Department of Agriculture’s (USDA’s) ReConnect Loan and Grant Program requested over $1.4 billion to finance rural broadband expansion, exceeding available funds by more than $800 million. Despite tough competition, much of the funding may go to community broadband networks, since more than half of the applicants are publicly or collectively owned, including electric and telephone cooperatives, local governments, and federally recognized tribes.
As was the case in previous federal programs, most community broadband providers applying for ReConnect funds plan to deploy modern, high-speed fiber networks. Unlike the large telecom monopolies, which are letting their rural networks rot even while raking in government subsidies, community owned networks frequently leverage federal funds to deploy future-proof fiber optics in their rural service areas.
In 2018, Congress authorized $600 million for the ReConnect program to expand high-quality connectivity in rural America by providing grants and loans to Internet access providers. The first round of ReConnect applications closed earlier this summer with $200 million available in each of the three funding categories:
- 100 percent grant
- 50 percent grant - 50 percent loan
- 100 percent loan
Earlier this year, Congress approved an additional $550 million for the program, which the USDA will distribute after awarding round one funds.
Most entities were eligible to apply for ReConnect funds, including for-profit companies, rural cooperatives, local governments, and tribes. The guidelines for which communities qualified, however, were much more restrictive. Proposed service areas had to be rural, as defined by the USDA, and had to have between 90 and 100 percent of the...Read more