Proposed Bill Would Create New Broadband Grant Program

Sen Kirsten Gillibrand (D-NY) has introduced a bill that would give the Department of Agriculture the ability to issue grants for up to 50% of construction costs for broadband networks in rural areas where market conditions would not otherwise support such a network. The Broadband Connections for Rural Opportunities Program Act of 2012 (S.2275 and also known as the B-CROP Act of 2012) would amend the Rural Electrification Act of 1936 to establish the grant program.

Some highlights:

• Applications would be made to the Secretary of Agriculture and the bill leaves it to the Secretary to determine application details
• In making awards, the bill specifies that priority be given to projects that provide service to the highest proportion of rural residents that do not have access to broadband service or that will use broadband services to stimulate rural economic development. The bill notes that this could include projects that would connect business incubators in rural communities or that would be integrated with county and regional organization plans.
• The bill talks about giving the Secretary the discretion to use a certain percentage of budget authority to hire administrative personnel and for a national competition to create and maintain a “comprehensive and interactive rural broadband clearinghouse accessible on the Internet at no cost.” This clearinghouse would have information about “options, opportunities, resources, successful public-private partnerships, comprehensive funding sources and technology tutorials for rural broadband.”
• The U.S. Comptroller General would be required to evaluate and report on the effectiveness of all federal broadband assistance programs.