ReConnect Loan and Grant Program

The latest round of the US Department of Agriculture's (USDA) ReConnect rural broadband funding program received three times as many applications as there is funding for, said Andy Berke, administrator of USDA’s Rural Utilities Service, which is responsible for awarding the funding. Round 4, the latest USDA ReConnect round, has a budget of $1.15 billion to cover some of the costs of deploying service to unserved or underserved rural areas. USDA began accepting applications for funding in early September.

The US Department of Agriculture (USDA) is awarding $59 million to expand high-speed internet access to rural Michiganders through four major projects across the state, including two in the Upper Peninsula.  The Upper Peninsula Telephone Company will receive a $34,532,301 grant to install a fiber-to-the-premises network to connect 1,625 people, 69 farms, 40 businesses, and two educational facilities with the higher speeds in Dickinson, Luce, Mackinac, Marquette, Menominee, and Ontonagon counties.

An ambitious new plan by the state of Colorado seeks to end the state’s digital divide once and for all — and to do so using fiber, the gold standard for the fastest internet connections. Brandy Reitter, the executive director of the Colorado Broadband Office, said she took the position because she wanted to do impactful work “that was well funded” so she could actually fix the problem. Now she’s leading the state’s plan to use $1 billion in federal money to improve internet service, not just to help those with no internet access, but those with subpar service.

All across the country, state governments are scrambling to beef up their broadband offices and stand up new grant programs in anticipation of millions in funding from the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. Chad Rupe, the former administrator of the US Department of Agriculture’s Rural Utilities Service, has advice for states looking to make their broadband programs a success. According to Rupe, there are a few lessons states can take from the success of the ReConnect program as they navigate the path ahead.

After a highly competitive process, Pioneer Connect of Philomath (OR) has been awarded $24,952,007 from the US Department of Agriculture (USDA) in the 3rd round of funding for the ReConnect program. This ReConnect 3 grant will bring Fiber-to-the-Home (FTTH) to 1,528 locations in Benton, Lincoln, and Polk counties. The cooperative will install 296 miles of fiber to provide increased speeds and enhanced reliability, eliminating many challenges faced by members of these communities. This grant will be combined with an $8,317,336 loan bringing the total project to $33,269,343.

The broadband landscape across Northeastern Minnesota, and the state in general, has changed significantly since 2014, as gains made in providing access to high-speed connectivity populate communities like the Iron Range. It comes at a time when such internet connections have become critical in business, education, and often in day-to-day life.

US Department of Agriculture (USDA) is providing $759 million to bring high-speed internet access to people living and working across 24 states, Puerto Rico, Guam and Palau.

A recent round of government grants revealed the startling costs associated with covering residents in the most remote parts of the US. But while $200,000 per passing might seem like an eye-popping figure, Fiber Broadband Association CEO Gary Bolton noted that the cost applies to only the most extreme deployments. And in any event, he added, the long-term economic and systemic benefits of bringing fiber to such locations outweigh the upfront costs. According to Bolton, the average cost for a Tier-1 operator to deploy fiber is between $600 to $1,500 per passing.

In August 2022, the Federal Communications Commission denied the SpaceX (Starlink) bid to receive $885 million over ten years through the Rural Digital Opportunity Fund (RDOF). The FCC went on to say in the order that there were several technical reasons for the Starlink rejection. Starlink appealed the FCC ruling. Current federal grant rules don’t allow federal subsidies to be given to any area that is slated to get another federal broadband subsidy. This has meant that the RDOF areas have been off-limits to other federal grants since the end of 2020.

A US Department of Agriculture (USDA) release of the latest grant winners for the ReConnect broadband deployment program was the cost of deploying fiber in rural America. Looking at rural Alaska as an example, the Alaska Telephone Company, which won a $33 million grant, is planning to run fiber to 211 homes and five businesses at a staggering cost of nearly $204,000 per passing. In addition to the grant, the operator said it plans to invest $11 million of its own money in the project.