Tennessee uses $400 million of federal funds to boost broadband

Tennessee’s broadband deployment is getting a leg up with expanded funding from the American Rescue Plan (ARP). The Tennessee Department of Economic and Community Development (ECD) will award up to $400 million to service providers for broadband infrastructure projects. All entities authorized to provide broadband in the state are eligible to receive funding, said Taylre Beaty, state broadband director for the Tennessee ECD. The entities can be solely broadband providers to Tennessee, or they can include nationwide coverage. ECD began accepting project applications in January 2022, and broadband providers have until March 15 to submit applications for funding requests. Projects are expected to be completed within a three-year deadline. The additional funding has allowed ECD to remove its maximum request amount for grants, which was previously $2 million. Broadband infrastructure projects are required to provide minimum speeds of 100/20 Mbps, in accordance with the US Treasury’s Final Rule on ARP funding, which takes effect on April 1. The Final Rule also stipulates that grantees are now required to participate in the Federal Communication Commission’s Affordable Connectivity Program, which provides discounted internet service to qualifying low-income households.  Areas in Tennessee that have coverage below 25/3 Mbps and 10/1 Mbps, which are considered “severely underserved,” will be given priority for funding.