October 2016

At White House Rural Forum, USDA Unveils New Funding to Support Rural Broadband and Economic Development

At the White House Rural Forum convened Oct 5 at Pennsylvania State University, Agriculture Secretary Tom Vilsack announced $32 million in loans and grants that will promote economic development and provide access to broadband in more than 80 rural American communities. Sec Vilsack, who is chair of the first-ever White House Rural Council, convened the forum with rural policy, business and nonprofit leaders to discuss pertinent issues facing rural communities, including opportunities for economic growth and strategies for improving health care and housing. "This funding will provide much-needed capital and bring cutting-edge technology to rural communities across the country," Sec Vilsack said. "Investments in our rural businesses and communities, coupled with extending high-speed broadband, have led to a resurgence of economic development, created jobs and improved the quality of life in rural America. While we have made great progress, our work to extend capital and technology to rural America is not done." Some of the new investments include:

$3 Billion Invested in Rural Infrastructure Projects: In 2014, USDA launched a public-private partnership with Capitol Peak Asset Management and CoBank, a national cooperative bank and member of the Farm Credit System. Since 2014, more than $3 billion in private sector funding has been lent to over 400 financings of projects in the power, water, communications and community facilities industries.'
$7.7 Million in New Grants to Bring Broadband to 6 Unserved Communities: USDA's Community Connect program provides funding for broadband deployment into unserved areas. Since 2009, USDA Rural Development broadband programs have helped bring high-speed Internet access to nearly 6 million rural residents and businesses.'
Health Information Technology Investments: HHS's Health Resources and Services Administration (HRSA) is investing approximately $36 million in rurally-located health centers to support strategic investments in Health Information Technology. The investments will help health centers enhance their health IT and better prepare providers and staff to use health IT and data.

Op-ed from President Barack Obama on the Strength and Resilience of Rural America

[Commentary] Over the last eight years, my Administration has worked hand-in-hand with rural communities to build more opportunity – investing in rural schools, supporting rural small business owners, deploying high speed Internet and wireless, and building partnerships between businesses and colleges to help train folks not just for a job, but for a career. And for those struggling with opioid use, we've expanded access to treatment to help them get the care they need. So we're making progress – progress that's possible only because of the strength and resilience of the people in our rural communities.

In Pikeville (KY) former coal miners are trading coal for code. They're retraining to learn HTML, JavaScript, and PHP, transforming an old bottling factory into a digital hub. It's a transition that not only supports good jobs, but also offers a glimpse of what the future could look like in other communities like Pikeville. In Piedmont (AL) school leaders have invested in high-speed connectivity and laptops for every student, so that teachers can tailor lessons to individual students and assess each student's progress in real time. Already, test scores and graduation rates are up, and tiny Piedmont City School District has emerged as a national model for digital learning. That's what rural America can look like in the 21st Century. Smart investments that lead to real, tangible progress. Today, rural unemployment has dropped from a high of about ten percent during the Great Recession to six percent. The rural child poverty rate is dropping, and rural median household incomes are rising again. In so many ways, from its resilience and ingenuity in the face of a challenge to the defining values that power it every day, rural America represents that beating heart. That's why these communities are so important – because when America's rural communities are strong, America is strong.

Race is on for prized House Commerce Committee Chairmanship

The top job on the House Energy and Commerce Committee is likely up for grabs in the next Congress, with Rep Fred Upton (R-MI) reaching his six-year term limit with the gavel. The chairmanship has long been prized because it comes with sweeping jurisdiction over technology, healthcare and energy issues.

Rep Greg Walden (R-OR), who now leads the campaign arm for House Republicans, has his eye on the job. So does Rep John Shimkus (R-IL), who outranks Rep Walden in seniority. Both men have been reaching out to party leaders and members who serve on the Steering Committee, which will be awarding top committee jobs after the elections in November. “I’ve talked to a few members of the Steering Committee to make sure that they understood that I do intend to pursue it,” Rep Walden said. The composition of the Steering Committee will shift somewhat after the November elections. But lawmakers seeking to chair a committee, and their aides, often have a good sense of who the decision-makers will be. Rep Shimkus said that he spent much of September speaking with colleagues who might have a say in who gets the gavel. “Yeah, I think pretty much we talked to everyone we were targeted to talk to,” he said. The Energy and Commerce Committee’s wide jurisdiction makes its work of interest to a range of businesses, from Silicon Valley startups to coal-mining companies in Appalachia.

The virtue of consistency in privacy protection

[Commentary] When multiple federal agencies regulate the same industry, it’s critically important that their rules and standards complement, rather than conflict, with one another. This principle is all the more important when consumer privacy in the ever-expanding world of broadband use is at stake. Unfortunately, the Federal Communications Commission’s pending privacy rulemaking threatens to sacrifice the virtues of consistent protection and put it out of sync with the Federal Trade Commission.

The challenge arises following the FCC’s action to adopt network neutrality rules. As a senior member of the House Energy and Commerce Committee, which oversees these policy areas, I strongly supported net neutrality. However, one unfortunate consequence of the FCC’s decision to classify Internet Service Providers (ISPs) as common carriers was that it eliminated the FTC’s longstanding authority to police the privacy practices of ISPs. While I agree it’s necessary to fix this problem, it’s not a reason to go overboard. There is no need for the FCC to reinvent the wheel here. By synchronizing its final regulations with the FTC’s successful privacy framework – including vital details like what information the FTC counts as sensitive and what
kinds of data uses will still require opt-in consent – the FCC can protect consumers’ privacy online in a lasting, durable and consistent way.

[Henry Waxman is a former House Commerce Commitee Chairman from California. He currently serves as Chairman of Waxman Strategies where he represents both technology companies and broadband providers.]

Netflix, Dish And Others Oppose ISPs' Latest Challenge To Net Neutrality Rules

Netflix and Dish Network are joining with consumer groups to urge a federal appellate court to reject broadband providers' latest attempt to challenge the net neutrality rules. The rules, passed in 2015 by the Federal Communications Commission, reclassified broadband access as a utility service and imposed common-carrier obligations on broadband providers. The regulations prohibit Internet service providers from blocking or degrading traffic, and from engaging in paid prioritization. The FCC also broadly banned providers from hindering Web users and content companies from connecting with each other online -- although the scope of that prohibition remains uncertain. In June, a three-judge panel of the DC Circuit Court of Appeals upheld the rules. The panel specifically rejected Internet service providers' argument that the FCC lacked authority to classify broadband service as a utility.

The ISPs recently asked the appellate court for a new hearing in front of additional judges. This week, the FCC filed papers opposing that request. A coalition including Netflix, Dish and various advocacy groups like Free Press and Public Knowledge also opposes the request. They argue that the broadband providers haven't raised the kinds of legal issues that warrant a new hearing.

Subpoenas and Gag Orders Show Government Overreach, Tech Companies Argue

It has been six months since the Justice Department backed off on demands that Apple help the FBI break the security of a locked iPhone. But the government has not given up the fight with the tech industry. Open Whisper Systems, a maker of a widely used encryption app called Signal, received a subpoena in the first half of 2016 for subscriber information and other details associated with two phone numbers that came up in a federal grand jury investigation in Virginia. The subpoena arrived with a court order that said Open Whisper Systems was not allowed to tell anyone about the information request for one year.

Technology companies contend that court-imposed gag orders are being used too often by law enforcement and that they violate the Bill of Rights. The companies also complain that law enforcement officials are casting a wide net over online communications — often too wide — in their investigations. Justice Department officials, for their part, argue that these gag orders are necessary to protect developing cases and to avoid tipping off potential targets. The officials say that they are simply following leads where they take them.

Europe’s love/hate relationship with Silicon Valley — and what that means for US tech firms

While European business leaders envy the American tech industry’s success and innovation and consumers are eager to try the latest gadget or service, European authorities are chafing at the tech firms' perceived indifference to their countries’ laws and culture. German CEOs have even taken to adopting some of the more famous habits of so-called digital disrupters. When Daimler’s Dieter Zetsche discussed the future with Uber CEO Travis Kalanick at a tech event in Berlin this spring, he wore blue jeans and sneakers. Axel-Springer’s Döpfner sent three of his top executives to live together in a house in the tech mecca of Palo Alto, Calif., for a year. In a corporate video about this experiment, Döpfner is seen wearing a hoodie. The Palo Alto house became a key part of Axel-Springer’s pitch to investors as a digital leader. Old-school European corporations are willing to pay top dollar to hire tech people with Silicon Valley experience. Last November, for example, Volkswagen hired Johann Jungwirth, who had worked for Apple in Cupertino, Calif., to “reinforce” digitalization. For Volkswagen, Jungwirth is the perfect poster boy for tech disruption expertise. He introduces himself as “JJ,” praises the merits of his Tesla (which he has since traded in for a VW E-Golf) and cites Steve Jobs. Meanwhile, European regulators don’t seem as convinced that Facebook and other US tech companies are worth emulating.