Federal Broadband Funding Report: These Agencies Are Funding Internet for All (Part II)

On May 8, 2023, the National Telecommunications and Information Administration's Office of Internet Connectivity and Growth released its second annual report on federal broadband funding. The report summarizes and analyzes fiscal year 2021 (FY21— October 1, 2020 to September 30, 2021) data collected from across the federal government, including the Federal Communications Commission's Universal Service Fund (USF) programs. Over a dozen agencies provided data to NTIA for the report. Last week we examined the programs at the FCC and the Departments of Agriculture, Commerce, and Treasury. Here we look at smaller federal programs that can impact universal broadband.

Appalachian Regional Commission

The Appalachian Regional Commission (ARC) is an economic development partnership entity of the federal government and 13 state governments focusing on 423 counties across the Appalachian Region. ARC’s mission is to innovate, partner, and invest to build community capacity and strengthen economic growth in Appalachia. Expanding broadband is a core part of ARC's mission. ARC administers two programs that include broadband-related activities as eligible uses: the Area Development Program and the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative. Between October 1, 2020, and September 30, 2021, ARC committed $22.4 million to broadband-related Area Development Program and POWER Initiative projects.

1. ARC’s Area Development Program relies on a flexible “bottom-up” approach to economic development, empowering Appalachian communities to work with their state governments to design impactful investment opportunities supporting ARC's mission and investment priorities. ARC’s Area Development program makes investments in two general areas: critical infrastructure and business and workforce development. Critical infrastructure investments mainly include water and wastewater systems, transportation networks, broadband, and other projects anchoring regional economic development.
2. The POWER Initiative targets federal resources to help communities and regions that have been affected by job losses in coal mining, coal power plant operations, and coal-related supply chain industries due to the changing economics of America’s energy production. [See more on the POWER Initiative's impact.]

Since 2015, ARC has invested more than $368.1 million in 449 projects touching 360 counties across Appalachia through the POWER Initiative. Together, these investments are projected to create or retain nearly 40,000 jobs, leverage more than $1.57 billion in additional private investment into Appalachia’s economy, and prepare over 100,000 workers and students for opportunities in entrepreneurship, broadband development, tourism, and other industry sectors.

Delta Regional Authority

Delta Regional Authority (DRA) was established in 2000 as a formal framework for joint Federal-State collaboration to promote and encourage the economic development of the lower Mississippi River region (Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee) and Alabama Black Belt . DRA works to create jobs, build communities, and improve the lives of those that reside in the region. DRA’s region encompasses 252 counties and parishes.

At least 75% of DRA’s funds must be invested in economically distressed counties and parishes and isolated areas within non-distressed counties and parishes. In addition, half of DRA’s funds must support transportation infrastructure and basic public infrastructure.

DRA grant programs eligible for broadband-related funding include the States' Economic Development Assistance Program (SEDAP) and the Community Infrastructure Fund (CIF).

Between October 1, 2020 and September 30, 2021, SEDAP and CIF committed $130,000 to broadband projects. 

Denali Commission

The Denali Commission is an independent federal agency designed to provide critical utilities, infrastructure, and economic support throughout Alaska. As part of its efforts, the Denali Commission works to connect Alaskans to broadband internet. The 2019 Alaska Broadband Program is a plan to meet that goal, focusing largely on improving “middle-mile” and “last-mile” broadband infrastructure throughout Alaska. An update to a 2014 plan, the 2019 Alaska Broadband Program includes 22 recommendations intended to serve as guideposts for public policymaking and the pursuit of funding opportunities through 2024.

In FY 2021, the Denali Commission invested $750,000 in broadband. 

Department of Education

The Department of Education promotes student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Particularly in the era of COVID-19 and remote learning, a broadband connection has become a prerequisite to engage with the education system.

In FY21, the U.S. Department of Education obligated $7.4 million and outlayed $22.7 million in broadband funding. The department appropriated a total of $222 billion to education programs where broadband was an eligible expense. In total, there are 39 such programs. Here are some examples:

1. The 21st Century Community Learning Centers program supports the creation of community learning centers that provide academic enrichment opportunities during non-school hours for children, particularly students who attend high-poverty and low-performing schools. The program helps students meet state and local student standards in core academic subjects, such as reading and math; offers students a broad array of enrichment activities that can complement their regular academic programs; and offers literacy and other educational services to the families of participating children. Using 21st CCLC program funds, digital learning partnerships can expand internet access, boost digital literacy, increase the scope and effect of volunteer and service partnerships, and open avenues to anytime/anywhere learning.

2. The Alaska Native and Native Hawaiian Serving Program provides grants and related assistance to eligible Alaska Native-serving institutions and Native Hawaiian-serving institutions of higher education to enable such institutions to improve and expand their capacity to serve Alaska Natives and Native Hawaiians. In accordance with the department's priorities for grant funding adopted in December 2021, grants can support providing students and educators with access to reliable high-speed broadband and devices.

3. The Alaska Native Education Program was established to meet the unique educational needs of Alaska Natives and to support supplemental education programs to benefit Alaska Natives. Grantees under the program use their funds for such activities as the development of curricula and education programs that address the educational needs of Alaska Native students, and the development and operation of student enrichment programs in science and mathematics. Eligible activities also include professional development for educators, activities carried out through Even Start programs and Head Start programs, family literacy services, and dropout prevention programs. Support can be used to install reliable satellite service and provide wireless internet connectivity, digital learning devices, and software applications.

4. American Rescue Plan Homeless Children and Youth provides $800 million to states, which in turn provide subgrants to school districts to improve the identification of children and youth experiencing homelessness and to provide support and wraparound services to these children and youth. The goal is to make it easier for children and youth experiencing homelessness to participate in school activities like in-person instruction and extracurricular activities. Support can be used for providing access to reliable, high-speed internet for students through the purchase of internet-connected devices/equipment, mobile hotspots, wireless service plans, or installation of Community Wi-Fi Hotspots (e.g., at homeless shelters), especially in underserved communities.

5. The Education Stabilization Fund was created by 2020's Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act allocated $30.75 billion for the Education Stabilization Fund to ensure that states, schools, and institutes of higher education receive support in response to COVID-19.  Four grant programs were created through the CARES Act: Education Stabilization Fund Discretionary Grants; Governor’s Emergency Education Relief Fund; Elementary and Secondary School Emergency Relief Fund; and Higher Education Emergency Relief Fund. The Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSA Act) was signed into law in December 2020 and provided an additional $81.9 billion to the Education Stabilization Fund. Concerning educational technology, Education Stabilization Fund support can be used to purchase hardware, software, and connectivity for students who are served by the local educational agency that aids in regular and substantive educational interaction between students and their classroom instructors, including low-income students and students with disabilities, which can include assistive technology or adaptive equipment.

Congress set aside half of 1 percent of the $30.75 billion allotted to the Education Stabilization Fund through the CARES Act for formula grants to the Outlying Areas of the United States, specifically: the US Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. Each Outlying Area received two block grants from the Education Stabilization Fund. One was made to Governor’s offices and one was made to the State Education Agency (SEA).  Each had its own Certification and Agreement and its own uses of funds. Both listed broadband as an eligible expense.

6. The Governor's Emergency Education Relief Fund provided over $4 billion of one-time funding to Governors’ offices, which in turn made subgrants to local educational agencies, institutions of higher education, and/or other education-related entities to address the impact of COVID-19 on educational systems. GEER funds under the CARES Act expired on September 30, 2022; GEER funds under the CRRSA Act will expire on September 30, 2023. Nineteen states used these funds to expand broadband access and provide mobile hot spots in communities, including improving connectivity and providing devices to teachers and students.

7. The Elementary and Secondary Schools Emergency Relief Fund (ESSER) provided nearly $200 billion of one-time funding to state educational agencies, which in turn made subgrants (at least 90% of the state award) to local educational agencies to address the impact of COVID-19 on students and school personnel. ESSER funds under the CARES Act expired on September 30, 2022; ESSER funds under the CRRSA Act will expire on September 30, 2023; and, ESSER funds under the American Rescue Plan Act will expire on September 30, 2024. ESSER support can be used to purchase hardware, software, and connectivity for students who are served by the local educational agency that aids in regular and substantive educational interaction between students and their classroom instructors, including low-income students and students with disabilities, which may include assistive technology or adaptive equipment.

8. The Student Support and Academic Enrichment Program was created to improve student’s academic achievement by increasing the capacity of States, local educational agencies, schools and local communities to: 1) provide all students with access to a well-rounded education; 2) improve school conditions for student learning; and 3) improve the use of technology in order to improve the academic achievement and digital literacy for all students.

Department of Housing and Urban Development

The Department of Housing and Urban Development (HUD) creates strong, sustainable, inclusive communities and quality affordable homes for all. A broadband connection is increasingly considered an essential tool in any house or apartment.

By law, any new construction or substantial rehabilitation of a building with more than 4 rental units and that is subject to a Housing Assistance Payments contract executed or renewed after January 19, 2017, must include the installation of broadband infrastructure.

For several of its programs, HUD offers funding that can be used to provide broadband access in housing units and in some cases, the department requires that funding recipients make broadband accessible in their housing units.

The Section 108 Loan Guarantee Program provides Community Development Block Grant (CDBG) recipients with the ability to leverage their annual grant allocation to access low-cost, flexible financing for economic development, housing, public facility, and infrastructure projects. The program allows local governments to leverage portions of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of redeveloping entire neighborhoods. Such public investment is often needed to inspire private economic activity, providing the initial resources or simply the confidence that private firms and individuals may need to invest in distressed areas. Section 108 can be used for communities to upgrade their broadband infrastructure to create more ‘connected’ communities.

The Community Development Block Grant Program (CDBG) provides annual grants on a formula basis to states, cities, and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. CDBG can fund broadband infrastructure for entire communities, if the beneficiaries are predominantly low-to moderate-income.

The Continuum of Care (CoC) Program is designed to promote a community-wide commitment to the goal of ending homelessness; to provide funding for efforts by nonprofit providers, states, Indian Tribes or tribally designated housing entities, and local governments to quickly rehouse homeless individuals, families, persons fleeing domestic violence, dating violence, sexual assault, and stalking, and youth while minimizing the trauma and dislocation caused by homelessness; to promote access to and effective utilization of mainstream programs by homeless individuals and families, and to optimize self-sufficiency among those experiencing homelessness. CoC allows internet services to be charged to operating costs and, if internet service is directly related to carrying out CoC grant activities, the costs can be charged to the eligible activity.

The Emergency Solutions Grants Program makes grants to states, units of general purpose local government, and territories for the rehabilitation or conversion of buildings for use as emergency shelter for the homeless, for the payment of certain expenses related to operating emergency shelters, for essential services related to emergency shelters and street outreach for the homeless, and for homelessness prevention and rapid re-housing assistance. The program allows internet services to be charged to essential services or shelter operations. Additionally, if the internet services are directly related to carrying out activities eligible under a program component, the costs are considered eligible under that component.

The HOME Investment Partnerships Program provides formula grants to states and localities that communities use—often in partnership with local nonprofit groups—to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. The program’s flexibility allows states and local governments to use HOME funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits.

As part of a new construction or rehabilitation activity, HOME may pay for the development costs to make utility connections, including connections from the property line to the adjacent street. This includes broadband internet connections. However, HOME funds cannot be used for any off-site improvements, including running broadband internet cable or wires to the project site. Use of HOME funds is limited to the improvements on the project site.

The Housing Trust Fund (HTF) provides grants to states to produce and preserve affordable housing for extremely low- and very low-income households. States and state-designated entities are eligible grantees for the HTF. HUD allocates HTF funds by formula annually. A state must use at least 80 percent of each annual grant for rental housing; up to 10 percent for homeownership; and up to 10 percent for the grantee's reasonable administrative and planning costs. HTF funds may be used for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing with suitable amenities. All HTF-assisted units will be required to have a minimum affordability period of 30 years.

HTF funds may be used for the actual costs of constructing or rehabilitating single-family or multifamily housing, including the costs to wire the property for broadband internet. The costs to make utility connections, including off-site connections from the property line to the adjacent street, are also eligible. HUD includes internet connectivity in the regulatory definition of “utility connections.”

For both new construction and rehabilitation of multifamily rental projects, HTF funds may be used for costs to construct or rehabilitate community facilities that are located within the same building as the housing, and which are for the use of the project residents. However, HTF funds cannot pay for a computer room located in a separate building from the assisted housing. HTF funds also may not pay for equipment or furniture in the computer room.

If a multi-unit project does not contain 100 percent HTF-assisted units, only a portion of the cost of providing broadband internet access in the project or the cost to construct a computer room may be charged to the HTF program because only the actual HTF-eligible development costs of the assisted units may be charged to the program.

All HTF-assisted housing must meet minimum property standards upon completion, so efforts to provide broadband internet access in existing housing must be undertaken as part of rehabilitation that brings the housing up to the property standards.

The Indian Community Development Block Grant Program (ICDBG) provides eligible grantees with direct grants for use in developing viable Indian and Alaska Native Communities, including decent housing, a suitable living environment, and economic opportunities, primarily for low- and moderate-income persons. Projects funding by the ICDBG program must principally benefit low-and-moderate-income persons.

The program provides funding in three categories: 1) housing (housing rehabilitation, land acquisition to support new housing construction, and, under limited circumstances, new housing construction); 2) community facilities (infrastructure construction, e.g., roads, water and sewer facilities; and, single or multipurpose community buildings); and 3) economic development (wide variety of commercial, industrial, and agricultural projects which may be recipient owned and operated or which may be owned and/or operated by a third party). Applicants may use funds for the provision of broadband access to their community members.

The Indian Housing Block Grant Program is a formula grant that provides a range of affordable housing activities on Indian reservations and Indian areas. Eligible activities include housing development, assistance to housing developed under the Indian Housing Program, housing services to eligible families and individuals, crime prevention and safety, and model activities that provide creative approaches to solving affordable housing problems. Recipients can include the provision of broadband in their projects.

The Title VI Loan Guarantee Program allows recipients of Indian Housing Block Grant Funds to use current and future fund allocations as a means of leverage to obtain HUD-guaranteed financing. These loans can be used to build infrastructure, like broadband networks.

The Capital Fund provides public housing agencies (PHA) with grants for development, modernization, and management improvements. For computer internet connectivity, PHAs have used Capital Funds to update buildings to support broadband internet and Wi-Fi. They have also used funds to purchase and install equipment, and for capital expenditures to facilitate programs to improve the empowerment and economic self-sufficiency of public housing residents, tenant accommodations, and training to operate equipment.

The Public Housing Operating Fund provides operating subsidies to housing authorities (HAs) to assist in funding the operating and maintenance expenses of their own dwellings. Some HAs have used Operating Funds to provide computer internet services to residents of public housing both in their units and in common areas. HUD has allowed PHAs to use Operating Funds to cover costs of computer internet service for computer labs, common areas, and PHA operation and management purposes.

Department of the Interior

Department of the Interior protects and manages the nation’s natural resources and cultural heritage; provides scientific and other information about those resources; and honors its trust responsibilities or special commitments to American Indians, Alaska Natives, and affiliated Island Communities.

The Department of the Interior is working to help connect Tribal communities to the internet through the National Tribal Broadband Grant program which provides funding to federally recognized American Indian and Alaska Native tribes, bands, villages, nations, or communities to deploy broadband. The program funds Tribes to hire consultants to perform feasibility studies for the deployment or expansion of broadband transmitted through digital subscriber line (DSL), cable modem, fiber, wireless, satellite, and broadband over power lines (BPL).

In 2020, fifty-five proposals were submitted by tribal applicants—totaling over $2.5 million in requested funding—and the department awarded over $1.2 million to tribes to help them explore opportunities to develop or expand broadband services in their communities.

The Hoopa Valley Public Utilities District used its National Tribal Broadband Grant funding to procure a feasibility study for a Tribally chartered wireless internet service provider. EnerTribe—a Native American- and women-owned consulting firm specializing in Tribal businesses with a focus on the planning, funding, engineering, and construction of telecommunications infrastructure projects—was contracted to provide the necessary expertise in recommending the best practices for broadband projects from a wireless, fiber, and regulatory standpoint. This business model, founded on a 5-year net income forecast, identifies a conservatively projected path for wireless implementation at current “snapshot” industry and market rates.

Institute of Museum and Library Services

The Institute of Museum and Library Services (IMLS) advances, supports, and empowers America’s museums, libraries, and related organizations through grantmaking, research, and policy development. IMLS envisions a nation where individuals and communities have access to museums and libraries to learn from and be inspired by the trusted information, ideas, and stories they contain about our diverse natural and cultural heritage.

Libraries play a central role in providing digital access and inclusion. Over 99% of public libraries provide internet access to their users through public access computers. During the COVID-19 pandemic in 2020, 62% of public libraries provided Wi-Fi internet access to users outside their buildings, and nearly 50% increased pre-existing external Wi-Fi access.

In FY21, IMLS obligated $13.5 million for broadband-related projects.

The American Rescue Plan Act allocated funds to support museum and library services in addressing community needs created or exacerbated by the COVID-19 pandemic and in assisting with recovery. IMLS offered $15 million in grants to museums, libraries, and Native American and Native Hawaiian communities. Projects could continue, enhance, or expand existing programs and services, or launch new ones to address emergent needs and unexpected hardships. The one-year matching grants provided $10,000 to $50,000.  IMLS received 572 applications requesting over $22.8 million. In October 2021, IMLS announced 390 grants totaling $15,255,733 to institutions across 49 states, the District of Columbia, and Puerto Rico. The award to the Cynthiana-Harrison County Public Library in Kentucky allowed it to partner with the local Chamber of Commerce to create a business center with access to computers, internet, and printing and faxing services to help the small business community and job seekers. The project enabled the library to develop spaces for small businesses to conduct their work as well as provide more computers and hotspots for patrons to check out for use at home.

The Grants to States program is the largest source of federal funding support for library services in the U.S. dating back to the Library Services Act passed by Congress in 1956. The program supports library initiatives and services to meet the needs of children, parents, teenagers, adult learners, senior citizens, the unemployed, the business community, and members of the current and future library workforce. Funds are distributed according to a population-based formula and may be used to provide access to electronic databases, computer instruction, homework centers, summer reading programs, digitization of special collections, access to e-books and adaptive technology, broadband connectivity, bookmobile service, development of outreach programs to the underserved, and related efforts. Priorities are established by each State Library Administrative Agency and are detailed in state-specific Five-Year Plans.

The National Leadership Grants for Libraries supports projects that address critical needs of the library and archives fields and have the potential to advance practice and strengthen library and archival services for the American public. Successful proposals will generate results such as new models, tools, research findings, services, practices, and/or alliances that can be widely used, adapted, scaled, or replicated to extend and leverage the benefits of federal investment. One goal of the program is to improve the ability of libraries and archives to provide broad access to and use of information and collections with emphasis on collaboration to avoid duplication and maximize reach. An objective is to advance digital inclusion by enhancing digital infrastructures, platforms, technologies, online services, connectivity, digital literacy, privacy, and security, or creating new processes and procedures needed to sustain a robust online environment

The Native American Library Services: Basic Grants program is designed to assist Native American tribes in improving core library services for their communities including digital literacy skills. The Native American Library Services: Enhancement Grants program goals include improving digital services to support needs for education, workforce development, economic and business development, health information, critical thinking skills, and digital literacy skills.

National Science Foundation

The National Science Foundation is an independent federal agency that supports research to create knowledge, promote the progress of science, advance the national health and prosperity, and secure the national defense. Expanding broadband is essential to these goals, motivating the agency to launch the OVERCOME (cOnnectiVityfor undERserved COMmunitiEs) Project. The goal of this project is to select, launch, and oversee five proof-of-concept efforts to deploy novel broadband technology solutions to both rural and urban underserved communities.

An evaluation of Project OVERCOME found:

• Increased support from community members and internet service providers is crucial for improving digital literacy and reaping the benefits of broadband deployment for disadvantaged populations.
• Providing access to the internet is not enough to address digital inequality. Policymakers must also promote digital literacy and provide resources and support for underserved communities to participate in the economy and shape their communities.
• The study found that informal help from family and friends is not effective in increasing internet use, highlighting the importance of systematic help and training provided by organizations.

Northern Border Regional Commission

Northern Border Regional Commission (NBRC) is a Federal-State partnership for economic and community development within the most distressed counties of Maine, New Hampshire, Vermont, and New York. NBRC has one program where broadband is an eligible expense: the State Economic & Infrastructure Development Investment Program. Infrastructure projects can win awards up to $1 million.

In FY21, NBRC obligated $2.6 million of funding and outlayed $200,000, supporting broadband buildouts in each NBRC state. In September 2021, six projects from NBRC’s State Economic & Infrastructure Development Investment grant funding round were focused on broadband. In the coming year, these nascent projects will begin reporting programmatic accomplishments associated with the grant funding and their impact on northern border communities.

1. In Lewis County (NY) a project will provide affordable, reliable, and high-speed broadband to approximately 1,173 homes and businesses covering a 10-mile radius including the Village of Copenhagen and surrounding rural communities that are currently underserved or have no access to internet. In Livingston County (NY), the Village of Lima will partner with Empire Long Distance Corporation to build a 12.4-mile fiber-optic network that will provide businesses and residents in the Village with internet speeds of up to 10 Gigabits per second. This investment will help up to 2,000 residents.
2. In New Hampshire's Carroll County, the Town of Sandwich will form a public-private partnership to construct a fiber-optic broadband network that will service the entire town (1,354 people) and provide access for every household and business to fast, reliable internet service at an affordable price.
3. The Town of Hebron in Grafton County (NH) will construct a 25-mile fiber-optic middle-mile network connecting the Town of Bristol and the University of New Hampshire’s fiber networks. This fiber network will bring broadband connectivity to 3,421 residents and 258 businesses.
4. A project in Summerset County, Maine, will reconstruct 4,100 feet of sidewalk/conduit, replacing one electrical control and adding 4,100 feet broadband fiber to increase and diversify business growth and jobs, leverage private investment, retain and increase talent, and improve working wages by creating a safe and thriving downtown in the Town of Pittsfield.
5. In Kennebec County, Maine, a project will replace a 900-foot-long, 8" sewer utility crossing of the Kennebec River with 16" pipe, providing water system looping resiliency with 6,300 feet of 12" and 16" pipe, and increase fiber-optic system reliability with 15,000 feet of new fiber cable.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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