West Virginia defends broadband stimulus grant

Gov Joe Manchin's (D-WV) office has notified federal officials that its plan to build a high-speed Internet network in West Virginia "is in full compliance" with a $126 million stimulus grant being used to pay for the project.

The governor's office was responding to a formal protest filed by Citynet, a telecommunications company that alleges the state isn't spending the federal economic stimulus money as the grant intended. Citynet recently told federal officials that the grant solely benefits Frontier Communications, a Citynet competitor. Gov Manchin disputed the allegations. "Through the grant process, the extensive due diligence, and from the date of the award, the state has specifically met all the requirements and guidelines set by the [federal government] to secure this funding," the governor said in a prepared statement. "We will continue to take the necessary steps to ensure the grant is properly carried out."