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1 1 (September 9, 2021)

handle is hein.crs/goveemd0001 and id is 1 raw text is: September 9, 2021 Infrastructure Investment and Jobs Act: Funding for USDA Rural Broadband Programs On August 10, 2021, the Senate passed the Infrastructure Investment and Jobs Act (H.R 3684). The bill would invest in the nation's infrastructure, including roads, highways, and electric, water, and railway systems. The bill would also investin broadband (i.e., high-speed internet) infrastructure, including in rural areas where households have historically hadlower access to broadband compared with households in urban and suburban areas. The infrastructure bill includes funding for two U.S. Department ofAgriculture (USDA) broadband programs that serveruralcommunities: the ReConnect Programand the Rural Broadband Program. This is in addition to provisions that would amend or provide funding to broadbandprograms administeredby the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission (FCC). This InFocus summarizes the provisions in the Senate-passed infras tructure bill related to the ReConnect Programand the Rural Broadband Program. Program Overviews The ReConnect Pro gramoffers loans, grants, and loan/grant combinations to help construct or improve facilities required to provide broadband access to rural areas. Eligible anulicants include comorations. cooneratives. nublic entities, U.S. territories, and federally recognized Indian tribes. The programcan also fund the acquisitionor upgrade of an existing sv stemnotcurrently providing sufficient broadband access. The Rural Broadb and Programoffers loans to help construct, improve, or acquire facilities and equipment needed to urovide broadband access to rural areas. Eligible applicants include corporations, cooperatives, public entities, U.S. territories, and federally recognized Indian tribes. Congress has also authorized the Rural Broadband Programto issue grants and loan guarantees (in recent years, Congress has appropriated funding only for direct loans). Althoughthe programs are similarin mission,key distinctions include funding levels andhow theprograms define eligible service areas. In recent years, Congress has provided more funding for the ReConnect Program than for the Rural Bro adband Program. As an example, Congress appropriated $550million in FY2019, $555 million in FY2020, and $635 million in FY2021 for ReConnect Programgrants andloan subsidies, and Congress appropriated $5.8 million in FY2019, $2 million in FY2020, and $2 million in FY2021 for Rural Broadband Programloan subsidies. Congress has provided a more restrictive definition of eligible service areas for the ReConnect Program than for the Rural Bro adband Program. The definition for eligible service areas involves two parts: the minimum broadband speeds that constitute sufficient access and the percent of households thathave access to broadband at thosespeeds. ReConnect defines eligible service areas as areas where at least 90% of households lacksufficient access to broadband. Sufficientaccess is defined as speeds of at least 10 megabits per second download and 1 megabit per second upload (i.e., 10/1 Mbps). The Rural Broadband Program defines eligible serviceareas as areas where at least50% of households do nothave sufficient bro adband access. Sufficientbroadband access is defined as speeds of at least 25/3 Mbps. Congress has provided higher annual funding levels for the ReConnect Program(those projects must serve rural communities with higherlevels of need). By contrast, the Rural Broadband Programhas received lower annual funding levels fromCongress (eligibility criteria is less restrictive than the ReConnect Program). Infrastructure Investment and jobs Act Funding Division J, Title I of the Senate-passedH.R 3684 would provide $2billion for USDA broadband programs, to remain available until expended. This would include $1.926 billion for ReConnect Programgrants and loans and $74 million for Rural Broadband Programloans. The funding provided would exceed FY2021 levels by $1.291 billion (+203%) for the ReConnect Programand by $72 million (+97%) for the RuralBro adband Program. The bill would allow up to 4% of funding for both programs to be used for administrative costs (i.e., $80 million) and up to 3% of funding to be used for technical as sistance to potential applicants (i.e., $60 million). It would also direct $5 million of the technical assistance funds to establish and support cooperatives to offer broadband service in rural areas. Additionally, the bill would direct USDA to collaborate with the FCC and the NTIA in awarding funding for broadbandprojects. Infrastructure Investment and obs Act Requirements for ReConnect Projects The infrastructure bill includes not only funding but also language that directs how USDA is to administer the ReConnect Programfunding. These provisions do not apply to the Rural Broadband Program. The provisions focus on https :/c rs repe

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