How State Grants Support Broadband Deployment

Millions of people across the country still lack sufficient access to broadband service, largely because they live in rural communities, which are the most difficult and expensive to serve. The challenges of deploying broadband network infrastructure in rural locations, particularly low population density and difficult terrain, create high costs and low returns on investment that discourage providers from expanding into those areas. As of fall 2021, 44 states had established grant programs to cover the costs of broadband deployment in areas where it would otherwise not be economically feasible. Although many of these programs generally share a common focus on increasing availability and subscription rates in communities without sufficient access, they vary across states regarding the amount of funding available, specific goals, speeds standards, eligibility, and required level of community engagement.  Further, while some state programs must adhere to strict requirements for what types of projects or providers can receive funding, others have more flexibility to change and adapt. The Pew Charitable Trusts examined the various ways states have structured their grant program funding, eligibility, and objectives. This brief summarizes the findings of that review, looks at how different program priorities and requirements affect where and how broadband infrastructure is deployed, and highlights examples from states that are working strategically to make high-speed internet service available to more Americans.