GAO's Preliminary Observations on the Implementation of Broadband Stimulus Programs

In testimony before the Senate Commerce Committee, the Government Accountability Office's Mark Goldstein provided preliminary information on the challenges Department of Commerce's National Telecommunications and Information Administration (NTIA) and the Department of Agriculture's Rural Utilities Service (RUS) face in distributing broadband stimulus grants and loans; the steps taken to address challenges; and the remaining risks in 1) evaluating applications and awarding funds and 2) overseeing funded projects. The testimony is based on related ongoing work that GAO expects to complete in November. To conduct this work, GAO is reviewing relevant laws and program documents and interviewing agency officials and industry stakeholders. While this testimony does not include recommendations, GAO expects to make recommendations in its November report.

NTIA and RUS face scheduling, staffing, and data challenges in evaluating applications and awarding funds. The agencies have taken steps to meet these challenges, such as adopting a two-step evaluation process, utilizing nongovernmental personnel, and publishing information on the applicant's proposed service area. While these steps address some challenges, the agencies lack the needed time to apply lessons learned from the first funding round and face a compressed schedule to review new applications. As a result, the agencies may risk awarding funds to projects that are not sustainable or do not meet the priorities of the Recovery Act.