Broadband Internet Access and the Digital Divide: Federal Assistance Programs

With the conclusion of the grant and loan awards established by the American Recovery and Reinvestment Act of 2009, there remain two primary ongoing federal vehicles which direct federal money to fund broadband infrastructure: the broadband and telecommunications programs at the Rural Utilities Service (RUS) of the U.S. Department of Agriculture and the Universal Service Fund (USF) programs under the Federal Communications Commission. RUS broadband programs were reauthorized and modified by the 2018 farm bill. The USF High Cost Fund is undergoing a major transition to the Connect America Fund, which is targeted to the deployment, adoption, and utilization of both fixed and mobile broadband. Meanwhile, the Consolidated Appropriations Act, 2018 (P.L. 115-141) appropriated $600 million to RUS to conduct a new broadband loan and grant pilot program (called the ReConnect Program), and appropriated $7.5 million to the National Telecommunications and Information Administration to update the national broadband availability map in coordination with the FCC. Additionally, P.L. 115-141 contained provisions seeking to facilitate deployment of broadband infrastructure on federal property, as well as making more spectrum available for wireless broadband. To the extent that the 116th Congress may consider various options for further encouraging broadband deployment and adoption, a key issue is how to strike a balance between providing federal assistance for unserved and underserved areas where the private sector may not be providing acceptable levels of broadband service, while at the same time minimizing any deleterious effects that government intervention in the marketplace may have on competition and private sector investment.