ReConnect Loan and Grant Program

The Alaskan landscape is rife with broadband accessibility and deployment challenges, which GCI is all too familiar with.

Here is an overview of the major federal funding vehicles for broadband that are helping to fuel the broadband investment cycle and are aimed at closing the digital divide so that all Americans have access to high-speed, reliable, affordable broadband:

On his first day in office, President Joe Biden (D-DE) charged the federal government with advancing equity for all, including communities that have long been underserved, and addressing systemic racism in our Nation’s policies and programs. In this new executive order, the President extends and strengthens equity-advancing requirements for agencies, and positions agencies to deliver better outcomes for the American people. The order calls for:

The US Department of Agriculture (USDA) is investing $63 million to bring high-speed internet access to people living and working in rural areas in Illinois, Michigan, Minnesota, and Mississippi. The investments include funding from the Infrastructure Investment and Jobs Act. The $63 million in grants comes from the third funding round of the ReConnect Program, in which USDA invested a total of $1.7 billion. The four projects being funded are:

It was worth the wait. The third round of the US Department of Agriculture's ReConnect Loan and Grant Program closed in 2022, after awarding $759 million in rural broadband grants and loans to 49 deployers, mostly small local exchange carriers (LECs). The average cost of passing each home, farm, other business, or school was just over $4,500, compared to $4,100 in 2019 and almost $6,000 in 2020. All awardees in this round, and almost all in previous rounds, told USDA they were deploying fiber to the premises.

US Senators John Thune (R-SD) and Ben Ray Luján (D-NM)—ranking member and chairman, respectively, of the Senate Subcommittee on Communications, Media, and Broadband—and Amy Klobuchar (D-MN) and Deb Fischer (R-NE) reintroduced the Rural Internet Improvement Act. This bipartisan legislation would streamline and bolster US Department of Agriculture (USDA) Rural Development broadband programs and ensure that their funding is being targeted to rural areas that need it the most.

There needs to be a way to consistently track the billions in broadband infrastructure money coming from the federal government, said Information Technology and Innovation Foundation panelists. With $42.5 billion coming to the states from the National Telecommunications and Information Administration’s (NTIA) Broadband Equity, Access, and Deployment (BEAD) Program, experts floated the idea of having mandated ongoing reporting requirements on what that money is doing. Brookings Institution senior fellow Nicol Turner-Lee said her research group is discussing their own version of a tracking me

The United States Department of Agriculture's Rural Utilities Service seeks comment on its update of Rural eConnectivity Program (ReConnect Program) regulation to ensure that requirements are clear, accurate as presented, and in compliance with Federal reporting requirements. The changes to ReConnect rules include:

The US Department of Agriculture (USDA) has a major hand in broadband matters. The agency's Rural Utilities Service (RUS) is responsible for overseeing a number of rural broadband funding programs, including the well-known multi-billion-dollar ReConnect loan and grant initiative. Andrew Berke has only recently taken the reigns as RUS Administrator, having been appointed by President Biden in October 2022.

US Department of Agriculture (USDA) leaders are looking to ensure that billions in government funding are easier to access by the rural communities many federal programs are meant to serve. USDA Undersecretary for Rural Development Xochitl Torres Small highlighted USDA's ReConnect Program, which is currently seeing more applications than available funding.