Subcommittee Examines Federal Rural Broadband Program Implementation

On Thursday, the House Agriculture Committee's Subcommittee on Rural Development, Biotechnology, Specialty Crops, and Foreign Agriculture held a hearing to review the progress made by the U.S. Department of Agriculture and Department of Commerce to award grants to expand broadband access in rural areas. "Broadband funding provided in the Recovery Act has the potential to set the stage for many years of broadband deployment in unserved and underserved rural areas. Today's hearing was another step to make sure that the policies and regulations work with and for the needs of Rural America," Subcommittee Chairman Mike McIntyre (D-NC) said. "This is an investment that can create jobs, improve communities, and change lives. Working together, we must get this right." National Telecommunications and Information Administration head Larry Strickling testified that Broadband Technology Opportunities Program grant announcements for the $1.6 billion available in the first funding round will begin by mid-December and will continue into early 2010. RUS Administrator Jonathan Adelstein said, "We are now in the process of evaluating First Round applications and expect to begin issuing awards shortly. The first NOFA made available up to $2.4 billion in program level (loans and grants) funding. Well over half of the total investment projected under the BIP program has been reserved for subsequent funding rounds. There have been previous conversations regarding plans for subsequent funding. One suggestion, which we have now implemented, is to compress the planned-for second and third rounds into a single round to give applicants additional time to develop strong proposals and to ensure that we are able to meet the goal of obligating all funds by September 2010. RUS and NTIA announced this change on November 10. Subsequent funding may also include enhancements to eligibility and scoring criteria used in Round One."