Minnesota’s Border-to-Border Broadband Development Grant Program is the state's financial tool to address the primary cause for the lack of broadband in unserved areas: high costs and lower population densities resulted in unsustainable business plans and thus broadband installations are not feasible. This month, Minnesota announced new grants that represent a significant acceleration of the Border-to-Border Program: previously, the Department of Employment and Economic Development's (DEED) Office of Broadband Development had provided nearly $130 million in Border-to-Border grants—matched with over $180 million in private and local matching funds—to connect more than 57,000 homes and businesses around Minnesota to high-speed internet since the program's inception in 2014.

In May 2022, Minnesota enacted HF3420, which included $210 million for broadband resources:

• $25 million in fiscal year (FY) 2023 and $25 million in FY 2024 in general fund spending directed to the state’s Border-to-Border Broadband Development Grant program, which provides 50% matching funds for broadband development costs for a qualifying project in unserved and underserved areas;
• $60.703 million directed from the state’s share of the federal Capital Projects Fund authorized by the American Rescue Plan Act to be used for broadband grants under the Border-to-Border Broadband Development Grant program, with the remaining $50 million reserved for the Walz administration to spend on any other eligible expenditure within the program’s guidelines, including digital inclusion efforts;
• All of the state’s appropriation of at least $100 million directed from the Broadband Equity, Access, and Deployment (BEAD) program, authorized by the Infrastructure Investment and Jobs Act, to be used for broadband infrastructure deployment under the Border-to-Border Broadband Development Grant program;
• A set aside of $10 million from the Border-to-Border Broadband Development Grant program funding and $30 million from the state’s BEAD grant share for the Low-Density Pilot Program to provide broadband service in areas of the state where a 50 percent match formula is not adequate to make a business case for broadband infrastructure deployment and allows up to 75 percent of the total project cost to be covered by Border-to-Border broadband grant funds;
• A set aside of $15 million for a new Broadband Line Extension Program, which would fund smaller-scale broadband line extensions to individual homes and businesses that still lack access; and 
• A set aside of $15 million from the state’s BEAD grant share for comprehensive statewide broadband mapping efforts.

Minnesota's Capital Projects Fund Support

On July 14, the  U.S. Department of Treasury approved Minnesota’s $68.4 million plan for use of 38 percent of the state's Capital Projects Fund allotment. Minnesota estimates that investments made using the Capital Projects Fund will serve 8 percent of locations still lacking high-speed internet access in the state. 

On December 1, Treasury approved Minnesota's plan to use an additional $44 million of Capital Projects Fund support for broadband infrastructure. The award will fund Minnesota’s Line Extension Program and Low-Density Pilot Program.

Minnesota's Largest-Ever Investment in Broadband

On December 8, Governor Tim Walz (D-MN) announced the state's largest single investment in broadband infrastructure: nearly $100 million. In total, 61 broadband expansion projects around Minnesota will receive $99.6 million in grants from the Border-to-Border Broadband program administered by DEED's Office of Broadband Development. Provider grantees estimate the funding will extend new high-speed internet connections to more than 33,000 Minnesota homes and businesses in 48 counties. The grant maximum is $5 million per project, and grant funds may be used to reimburse up to 50 percent of a grantee's eligible costs of deploying broadband infrastructure. Projects must meet or exceed the State's 2026 broadband speed goal of 100 Mbps download and 20 Mbps upload.

Funding for the latest awards came from a mix of state and federal appropriations: $25 million from Minnesota and $70 million in federal funding from the American Rescue Plan Act.

The largest awards include:

East Central Energy – Isanti North – $5,000,000

This last-mile project will serve these unserved and underserved locations: approximately 1,988 households, 142 businesses, 353 farms, and three community anchor institutions in Isanti and Kanabec Counties of Minnesota. In a funding partnership with the State of Minnesota and local partners (Isanti County, Stanchfield, Kanabec County, Arthur, Brunswick, Southfork, Cambridge, and Maple Ridge), East Central Energy (ECE) will improve unserved/underserved levels to at least 100 Mbps download and 100 Mbps upload, with most having access to a 1Gbps connection, exceeding Minnesota's 2026 state speed goal. This fiber-to-the-premises network will benefit households, businesses, and farms in the proposed grant area, furthering community and economic development. Total eligible project cost is $16,850,584. Local match is $11,850,584.

Arvig (Melrose Telephone Company) – Stearns County Area Fiber Build – $4,974,570

This mainline and last-mile project will reach 945 unserved and 1,204 underserved households, farms and businesses in the central portion of Stearns County near the rural parts of Sauk Centre, Melrose, Meire Grove, Greenwald, Elrosa, Spring Hill, St. Martin (and in-town St. Martin), Roscoe, Farming, Richmond, Cold Spring, and Eden Valley. In a funding partnership with Stearns County and the State of Minnesota, Arvig will improve internet speeds up to 10 Gbps download and 1 Gbps upload, exceeding Minnesota’s 2026 state speed goal. The fiber-to-the-premise build will provide Stearns County residents with the ability to run their at-home businesses and farms, or work from home more efficiently; continue to pursue their education online with confidence; have better access to telehealth services; be able to access more entertainment; and stay connected with friends and family. Total eligible project cost is $18,424,333. Local match is $13,449,763.

Federated Telephone Cooperative – Kandiyohi County West FTTP Project – $4,913,506

This last-mile project will serve 343 unserved and 302 underserved homes, businesses, farms, and community anchor institutions in the Kandiyohi County townships of Arctander, Dovre, Lake Andrew, Mamre, and St. Johns. In a funding partnership with the State of Minnesota, Federated Telephone Cooperative, along with Kandiyohi County and the aforementioned Townships as local partners, will improve unserved and underserved levels to greater than 100 megabits per second download and 100 megabits per second upload, exceeding Minnesota’s 2026 state speed goal. The residents of these townships recognize that competitive e-connectivity is a fundamental need for economic development, home business innovation, advancement in precision agriculture, e-learning, utilization of telehealth, connecting with isolated loved ones and improving quality of life. These rural townships have worked diligently to provide their own funding in addition to seeking grant funding to make this broadband project possible. Total eligible project cost is $9,827,011. Local match is $4,913,506.

Consolidated Telephone Company – CTC Woods to Waters Broadband Initiative – $4,857,030

This last-mile project amongst the woods and water of rural central and northeastern Minnesota will connect 1,459 unserved locations and 345 underserved locations to a fiber-to-the-premise network with symmetrical 1Gbps services, expandable to symmetrical 5Gbps, exceeding the 2026 state speed goal. Through multiple resident and business surveys, 66% of respondents indicated an inability but willingness to work from home and 62% of retirees indicated broadband is needed to age in place. This demonstrates the critical need in these specific communities for broadband services to prevent significant out migration, encourage business growth, increase options for education and telework, and keep individuals in their homes longer. In a partnership with the State of Minnesota, Cass County, City of Cloquet, City of Rice Lake, Gnesen Township, and Sylvan Township, this project demonstrates the need and commitment of local communities to bring much needed broadband service to their communities. Total eligible project cost is $9,714,060. Local match is $4,857,030.

East Central Energy – Pine South – $4,750,000

This last-mile project will serve approximately 2,082 households, 122 businesses, 329 farms, and 2 community anchor institutions currently unserved and underserved in Pine and Kanabec Counties of Minnesota. With funding support from the State of Minnesota and local partners: Kanbec County, Arthur, Brunswick, Pine City, Royalton, and Pine County, East Central Energy will improve unserved/underserved service speeds to at least 100 megabit per second download and 100 megabits per second upload, and access up to Gbps/1Gbps connectivity, exceeding Minnesota's 2026 state speed goal. ECE's fiber network will enable e-learning, access to telework opportunities, and resource optimization for agricultural lands and managed vegetation, a significant source of community and economic benefit throughout the project area. Total eligible project cost is $15,995,002. Local match is $11,245,002.

Farmers Mutual Telephone Company – Chippewa County Rural FTTP Project – $4,728,186

This last-mile project will provide fiber-to-the-premise service to 636 unique locations across 10 townships in rural portions of Chippewa County in Western Minnesota. 577 of these locations are unserved and 59 are underserved. The locations served include 15 community institutions like township halls, churches, or other public property; 10 rural businesses; 256 farms; and 355 residential locations. A high number of locations could be included in multiple classifications (farms, rural residences, and rural businesses). Together, Farmers Mutual Telephone Company, Chippewa County, Louriston and Rosewood Townships and the State of Minnesota will share the cost to provide 300 megabits per second symmetrical or 1G symmetrical service throughout the project area, exceeding Minnesota’s 2026 state speed goal. The project area has little or no current access to consistent and reliable broadband. This lack of access prevents the locations in this grant from participating in a digital economy, tele-health, e-learning, precision agriculture, integrating smart technologies into homes and buildings, and participating in social, civic and recreational online activities. Broadband access will also help attract and retain residents and businesses in the county that supports the local economy and tax base. Building a fiber-to-the-premise network that provides advanced, high-speed broadband services will position Chippewa County for the future. Total eligible project cost is $10,507,080. Local match is $5,778,894.

More Border-to-Border Funding to Come

DEED will soon launch a new Border-to-Border Request for Proposals (RFP) to award $67.6 million for broadband deployment ($25 million from the state and $42.6 million in federal funding). RFP applications will be open on or around December 19, 2022.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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Broadband Delivers Opportunities and Strengthens Communities