House Commerce Democrats Propose $40 Billion for Broadband Buildout In Newest Version of Infrastructure Bill
Friday, May 17, 2019
Weekly Digest
House Commerce Democrats Propose $40 Billion for Broadband Buildout In Newest Version of Infrastructure Bill
You’re reading the Benton Foundation’s Weekly Digest, a recap of the biggest (or most overlooked) telecommunications stories of the week. The digest is delivered via e-mail each Friday.
Round-Up for the Week of May 13-17, 2019
The week was jam-packed with broadband news [Seriously, see the Quick Bits and Weekend Reads below]. There was an oversight hearing of the Federal Communications Commission, Rep. James Clyburn (D-SC) launched the House Task Force on Rural Broadband, and we saw the FCC approve the first wave of funding from the Connect America Fund Phase II auction.
Lost in the whirlwind of news, perhaps, was an important announcement: All the Democrats on the House Commerce Committee unveiled the newest version of a comprehensive infrastructure package -- and it includes billions for broadband network buildout.
The LIFT America Act
House Commerce Committee Chairman Frank Pallone (D-NJ) led the way, introducing the Leading Infrastructure For Tomorrow’s (LIFT) America Act. The bill is a sweeping infrastructure package that aims to “rebuild America through investments in combating climate change, expanding broadband access and protecting public health and the environment.”
The bill provides funds targeted at expanding broadband access and implementing Next Generation 9-1-1 services.
I. Broadband Internet Access Service Programs
The bill aims to fully fund -- at $40 billion -- the FCC’s estimated cost for ensuring high-speed, reliable broadband is deployed to at least 98% of the U.S. Thirty billion dollars would be awarded by the FCC through a national reverse auction, a mechanism that relies on competitive bids from broadband providers to efficiently deploy networks to areas that don’t have broadband internet service today. This program would be separate from the FCC’s current Universal Service Fund programs.
Preference would be given to projects that:
- Have at least 20% matching funds from private sources;
- Provide high(er)-speed broadband;
- Set early completion dates; and
- Serve low-income communities.
Funding recipients would not be required to be designated as eligible telecommunications carriers.
The FCC would be required to allocate to states the remaining $10 billion. Within ten years, states would be required to:
- Use a statewide reverse auction,
- Focus on unserved areas, and
- Only direct funds to underserved areas if the no longer has any unserved areas.
States are to conduct separate reverse auctions for awards made to unserved anchor institutions.
II. Broadband Infrastructure Finance and Innovation
The LIFT America Act would create the Broadband Infrastructure Finance and Innovation Act (BIFIA) program at the National Telecommunications and Information Administration (NTIA) and authorize $5 billion in federal funding for the BIFIA program to make low-interest financing available for broadband infrastructure deployment projects.
BIFIA is modeled after two similarly authorized infrastructure programs, which were created under the Water Infrastructure Finance and Innovation Act (WIFIA) and the Transportation Infrastructure Finance and Innovation Act (TIFIA). Under the BIFIA program, a wide range of eligible entities -- including state and local governments, private companies, and public-private partnerships -- could apply for secured loans, lines of credit, or loan guarantees to finance broadband infrastructure buildout projects.
III. Smart Cities
The bill also provides a whole host of funding for advancing clean energy infrastructure; Smart Communities infrastructure is included.
The legislation provides $850 million over five years to spur the development of Smart Communities infrastructure through technical assistance, grants, and training. The bill would authorize the Department of Energy’s proposed Cities, Counties, and Communities energy program to provide technical assistance and competitive grants for clean energy solutions in development and redevelopment efforts. It also funds technical assistance to be provided by the national labs to cities and towns looking to deploy smart community infrastructure. The legislation would expand the Department of Commerce smart cities demonstration project to include small and medium cities and towns.
IV. Next Generation 9-1-1
The LIFT America Act authorizes the Next Generation 9-1-1 Implementation Coordination Office (ICO is a joint effort between NTIA and the National Highway Traffic Safety Administration) to provide $12 billion in grants over five years for the implementation of Next Generation 9-1-1 services. The Next Generation 9-1-1 service would protect American lives by making 9-1-1 service more resilient and by allowing callers to send text messages, images, or videos to 9-1-1 to help first responders better assess the nature of emergencies and protect callers when they can’t speak to 9-1-1 dispatchers.
The Future of the LIFT America Act
House Commerce Committee Democrats initially introduced the LIFT America Act in May of 2017, when they were in the minority. In the aftermath of the 2018 elections, Democrats now have the majority with more control over agendas and priorities. The Commerce Committee will be holding the hearing LIFT America: Modernizing Our Infrastructure for the Future on May 22, 2019.
The new bill follows the discussion that took place at the White House recently between Democrats and President Trump on working together on an infrastructure bill. As of this writing, there is no companion bill in the Senate.
Quick Bits
- House Communications Subcommittee FCC Oversight Hearing (Benton)
- Rep. Clyburn (D-SC) Forms Rural Broadband Task Force (Broadcasting&Cable)
- FCC Approves First Wave of Funding From Connect America Fund Auction (FCC)
- SpaceX launches first Starlink internet satellites (The Atlantic)
- President Trump signs order to protect US networks from foreign espionage, a move that appears to target China (Washington Post)
- White House will not sign on to Christchurch call to stamp out online extremism amid free speech concerns (Washington Post)
- White House escalates war against Facebook, Google and Twitter with a campaign asking users to share stories of censorship (Washington Post)
- Senate Commerce Committee Leaders Urge Chairman Pai to Speed Deployment of Spectrum for 5G (Senate Commerce Committee)
- Meteorologists Worry 5G Expansion Could Interfere With Weather Forecasts (Wall Street Journal)
- FCC Commissioners Rosenworcel, Starks Say the Agency Won’t Tell Them About Phone Location Data Investigation (Vice)
Weekend Reads (resist tl;dr)
- Broadband infrastructure should be a national priority for policymakers (Anne Stauffer, Kathryn de Wit Op-Ed)
- The FCC Must Abandon Its Plan to Disconnect Low-Income Families (Dana Floberg, Carmen Scuarato, Erin Shields Op-Ed)
- Connecting the Dots: The Telecommunications Crisis in Puerto Rico (Free Press)
- Native American Tribes Across the Country Are Pushing for Better Internet Access (Associated Press)
- Report on the Implementation of the Regulation on Open Internet Access (European Commission)
ICYMI from Benton
- Broadband is the New Railroad, Jon Sallet
- An Update on Broadband Bills in the 116th Congress, Robbie McBeath
Events Calendar for May 2019
May 20 -- The Future of California's Communications Grid, California Public Utilities Commission
May 21 -- 2019 Ranking Digital Rights Corporate Accountability Index, New America
May 21 -- Understanding the Digital Advertising Ecosystem and the Impact of Data Privacy and Competition Policy, Senate Judiciary Committee hearing
May 21 -- Optimizing for Engagement: Understanding the Use of Persuasive Technology on Internet Platforms, Senate Communications Subcommittee hearing
May 22 -- LIFT America: Modernizing Our Infrastructure for the Future, House Commerce Committee hearing
May 22-24: Partnership for Progress on the Digital Divide 2019 International Conference
May 31 -- Deadline for Submission: Charles Benton Early Career Scholar Award
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