MERIT

Quick Facts:

• Infrastructure bill proposes $42.5B for broadband deployment
• Additional provisions address digital equity
• Communities can take steps now to be prepared for future funding opportunities

Infrastructure Bill Overview:

Proponents of broadband expansion are eagerly awaiting news on the progress of the $1 trillion infrastructure bill passed by the U.S. Senate. While the language is not final until the bill is signed, the proposed allocations would make significant progress in connecting all Americans to high-speed internet. 

Four provisions of the package address internet access specifically:

1. $42.5 billion for broadband deployment and digital equity
2. $1 billion for middle mile infrastructure
3. $1.3 billion for the Digital Equity Act of 2021
4. Extension of the Emergency Broadband Benefit Program

 

The Provisions, Explained:

1. An impressive investment is proposed for the Broadband Equity, Access, and Deployment Program (BEADP). A minimum of $100 million would be allocated for each state to be used for broadband deployment and equity initiatives. The grant requires resulting networks to provide minimum speeds of 100 Mbps for downloads and 20 Mbps for uploads and must be scalable to faster speeds. Areas without service at 100 Mbps download and 20 Mbps upload are now considered underserved and will be eligible for funding. This is a significant change from the FCC standard of 2015: 25 Mbps download and 3 Mbps upload. Up to 5% of BEADP funding allotments will be available for activities such as data collection, staff support, and local outreach and training. Private sector entities, cooperatives, local governments, and nonprofit organizations would be eligible to apply for BEADP grants.
2. Another provision would dedicate $1 billion in NTIA grants for construction, improvement, or acquisition of middle mile infrastructure. The grants could be used to reduce the cost of connecting unserved and underserved areas to the backbone of the internet (commonly referred to as the “last mile”), or to promote broadband connection resiliency through the creation of alternative network connection paths to prevent single points of failure on a broadband network.
3. The Digital Equity Act of 2021 would authorize $60 million for planning grants to states to develop State Digital Equity Plans (State Digital Equity Capacity Grant Program), and would make available $650 million for grants to states to support the implementation of State Digital Equity Plans and digital inclusion activities (Digital Equity Competitive Grant Program).
4. Finally, the bill calls for an indefinite extension of the Emergency Broadband Benefit Program, which would be renamed the “Affordable Connectivity Program.”

 

Adoption Status:

The Senate passed the $1 trillion infrastructure bill through a bipartisan vote in August. It is expected to come up for a vote in the House on Sept. 27. But the bill is entangled with a larger $3.5 trillion spending package proposed by the White House, which progressive lawmakers want to see passed alongside the smaller bill. Political wrangling could lead to significant changes before the bill is final.

 

How Communities Can Prepare:

In the meantime, how should anchor institutions and communities pursuing broadband expansion prepare for action if these proposals are passed? We recommend the following:

1. If your community is in the early stages of planning a broadband expansion, consult the Michigan Moonshot Pathfinder Program. From creating a task force to feasibility and pre-engineering, program support is available every step of the way.
2. If your broadband task force intends to pursue grants, accurate maps of current internet availability and speeds in your area will help you build the case for funding. Consider whether information on areas currently considered unserved by the FCC is accurate — if FCC data shows a household as served when it actually is not, that household will likely remain ineligible for grant funding unless that data is refuted. Learn about data collection services available through the Michigan Moonshot program.
3. Seek information about other funding sources currently available. Grants Office LLC provides Merit members and the statewide community with this quarterly report that lists available federal and state grant funding opportunities to support all broadband efforts. The report features details on current award offers, application and funding deadlines, relevant organization sectors, and eligibility requirements.
4. Revisit the proposals in the Michigan Broadband Roadmap. Consider pursuing Digital Equity Competitive Grant Program funding for projects that address digital equity in Michigan.
5. Review the architecture of any projects proposed for funding to ensure they meet BEADP funding requirements for internet speeds (100 Mbps down and 20 Mbps up).

Watch the Michigan Moonshot website for an upcoming webinar with Grants Office LLC as soon new legislation is signed.