Changes to RUS Broadband Loan Program Include Rural Gigabit Pilot

When President Barack Obama spoke about reforms to the Department of Agriculture Rural Utilities Service broadband loan program, he was referencing changes adopted in the 2014 Farm Bill.

Although the changes have received little publicity, they include a new definition of eligible service areas, a new minimum acceptable level of broadband service for projects receiving loan funding and plans for a rural gigabit pilot program. While eligible service areas previously included those with at least 25 percent of homes underserved, the new requirement is for 15 percent of homes to be unserved. Also, an important budget development is the authorization of $10 million annually through 2018 for a Rural Gigabit Network Pilot Program. Funding will be awarded to network operators for areas that do not currently have ultra-high-speed broadband, and recipients will have up to three years for their deployments.