Rep Harris Asks NTIA to Reconsider Letter of Credit Requirements for Infrastructure Investment and Jobs Act Broadband Programs

Rep Andy Harris (R-MD) recently sent a letter to US Commerce Secretary Gina Raimondo regarding the National Telecommunications and Information Administration's (NTIA) requirements for its Infrastructure Investment and Jobs Act (IIJA) broadband programs. Specifically, the September 14, 2022 letter expresses concerns about the Letter of Credit (L/C) requirement included in the NTIA's Notices of Funding Opportunity (NOFOs) for the Broadband Equity, Access and Deployment (BEAD) Program and the Enabling Middle Mile (MM) Broadband Infrastructure Program. "Under this requirement," said Harris, "for a broadband provider to be eligible for a grant under the MM and BEAD programs, it must obtain a standby irrevocable L/C from a bank that equals 25% of the grant amount." Harris stated that "this L/C requirement contravenes the IIJA because it prevents the 'distribut[ion of] the funds in an equitable and nondiscriminatory manner' to all broadband providers, both small and big."