CBO Scores Broadband Internet Connections for Rural America Act

The Broadband Internet Connections for Rural America Act (HR 4374) would establish or reauthorize programs administered by the Department of Agriculture to increase broadband connectivity in rural areas and would authorize the appropriation of specific annual amounts over the 2022-2029 period. Because specific amounts are already authorized for most of the programs, this cost estimate accounts for the difference between the amounts specified in the bill and those authorized under current law. On net, H.R. 4374 would authorize the appropriation of about $42.3 billion. Using historical spending patterns for similar activities and information provided by USDA, CBO estimates that implementing H.R. 4374 would cost $9.0 billion over the 2022-2026 period, $33.5 billion over the 2022-2031 period and $7.0 billion after 2031, assuming appropriation of the authorized amounts. H.R. 4374 would authorize the appropriation of the following amounts over the 2022-2029 period:

• $4.5 billion annually for grants and loans under the ReConnect Rural Broadband Program. Under current law, $350 million is authorized to be appropriated annually for 2022 and 2023.
• $300 million annually for grants and loans to expand rural “middle mile” broadband infrastructure. Under current law, $10 million is authorized to be appropriated annually for 2022 and 2023.
• $300 million annually for grants and loans under the Innovative Broadband Advancement Program. Under current law, $10 million is authorized to be appropriated annually for 2022 and 2023.
• $150 million annually for grants under the Community Connect Program. Under current law, $50 million is authorized to be appropriated annually for 2022 and 2023.
• $150 million annually for grants and loans under the Distance Learning and Telemedicine Program. The program received supplemental appropriations of $531 million in 2021. Because CBO estimates budgetary effects under continuing resolutions on an annualized basis, in 2022 CBO assumes that the same amount will be available under the current continuing resolution (Public Law 117-43). Therefore, CBO estimates that H.R. 4374 would not increase net authorizations in that year relative to amounts already assumed in the baseline. Under current law, $82 million is authorized to be appropriated for 2023. The annual incremental increase that year is $68 million—the difference between the $150 million annual authorization under the bill and the current-law authorization of $82 million for that year.
• $25 million annually for USDA to provide technical assistance to rural communities under the Broadband Connectors Program.