Broadband, Health IT, and Smart Electrical Grid Remain Part of Stimulus Package

On February 12, 2009, House and Senate conferees approved the economic recovery package. The House Commerce Committee released summaries on the health care, broadband, and energy provisions.

1) On broadband: The bill would create a new Broadband Technology Opportunities Program within the National Telecommunications and Information Administration ("NTIA") of the Department of Commerce. The new grant program will distribute $4.7 billion to fund the deployment of broadband infrastructure in unserved and underseved areas in the country, and to help facilitate broadband use and adoption. An additional $2.5 billion in loans and grants will be administered by the Rural Utilities Service. The Federal Communications Commission is required to develop a national broadband plan within one year.

2) On energy: The legislation will jumpstart smart grid demonstration projects in geographically diverse urban, suburban, tribal, and rural areas. Federal matching grants for smart grid technology will increase from 20% to 50%. Grantees will be required to utilize open protocols and standards when available and lessons learned during demonstration projects will be available to help others to deploy smart grid infrastructure. The bill provides $4.5 billion for this effort.

3) On Health Information Technology: This bill promotes the use of health information technology (health IT), such as electronic health records, by: requiring the government to take a leadership role to develop standards by 2010 that allow for the nationwide electronic exchange and use of health information to improve the quality and coordination of care; investing $19 billion in health information technology infrastructure and Medicare and Medicaid incentives to encourage doctors, hospitals, and other providers to use health IT to electronically exchange patients' health information; and strengthening federal privacy and security law to protect identifiable health information from misuse and abuse as the health care sector increases use of health IT.