Biden Announces Availability of the $4 Billion in Recovery Act Loans and Grants to Increase Broadband Access and Adoption

Vice President Joe Biden announced the availability of $4 billion in American Recovery and Reinvestment Act loans and grants to help bring broadband service to un-served and underserved communities across America. This is the first round of Recovery Act funding aimed at expanding broadband access to help bridge the technological divide and create jobs building out Internet infrastructure.

Vice President Biden was joined by Agriculture Secretary Tom Vilsack, Commerce Secretary Gary Locke, Federal Communications Commission Chairman Julius Genachowski and Congresswoman Kathy Dahlkemper at Seneca High School in Wattsburg (PA), the first stop on the President's National Rural Tour.

NTIA and RUS will be accepting applications for loans, grants and loan/grant combinations to be awarded by each agency under a single application form. This collaborative approach will ensure that the agencies' activities are complementary and integrated, make the best use of taxpayer funds and make it easier for applicants to apply for funding. This is the first of three rounds of funding the Agriculture and Commerce Departments will provide.

Vice President Biden also announced that Commerce and USDA officials will host public workshops in July to share information about the funding availabilities and the application process. Forums will be held in Boston, Mass.; Charleston, W.Va.; Minneapolis, Minn.; Memphis, Tenn.; Lonoke, Ark.; Birmingham, Ala.; Billings, Mont.; Albuquerque, N.M.; and Los Angeles, Calif. Applications will be accepted beginning July 14, 2009, through 5:00 p.m. EDT on August 14, 2009. The complete details of this Notice of Funding Availability are available at http://www.broadbandusa.gov

"Today's announcement is a first step toward realizing President Obama's vision of a nationwide 21st-century communications infrastructure ­ one that encourages economic growth, enhances America's global competitiveness and helps address many of America's most pressing challenges," said Vice President Biden.

A quick breakdown of how the first wave of funding will play out.

• The Department of Agriculture has $2.3 billion it plans to allocate through the Rural Utilities Service: $400 million in grants and $800 million in grants and loans will be allocated toward last-mile services that connect to a consumer's home; $800 million in loans and grants will be available for the middle mile; and $325 million will be kept in reserve to fund worthy projects in either of the above categories. RUS grants will go only to rural, remote and unserved areas, while loans will go toward rural, remote and non-remote, underserved areas.
• The National Telecommunications and Information Administration has $1.6 billion it plans to dispense as grants, with $1.2 billion allocated to provide last- and middle-mile services to unserved and underserved areas that meet one of several possible criteria, $50 million for computer centers, $150 million to drive broadband demand, and $200 million held in reserve to spread among the three segments if needed. Applications will be accepted between July 14 and Aug. 14, and finalists will be chosen by Sept. 15. The money will start flowing to accepted projects by Nov. 7.