Feds Streamline Funding Process for Broadband Grant and Loan Programs

The Department of Agriculture’s Rural Utilities Service (RUS) and the Department of Commerce’s National Telecommunications and Information Administration (NTIA) recently announced that they are restructuring the funding process for the broadband programs introduced in the Recovery Act earlier this year. Both the Broadband Initiatives Program and the Broadband Technology Opportunities Program will make their investments through a single round of awards, instead of the planned two rounds, in order to streamline the process.The change was made in response to the overwhelming number of applications received by these programs during the first solicitation.

The first round of the grant and loan programs drew 2,200 applications from across the country, seeking almost $28 billion for regional projects, about seven-times more than the $4 billion that was to be awarded. By combining the second and third round of awards, the agencies will both reduce their administrative burden and save applicants the trouble of possibly applying twice for a chance and the remaining funds.

RUS and NTIA have also issued a request for information inviting feedback on the broadband development programs. The agencies are seeking input about how to further streamline the application process, ensure transparency, and target the remaining funds.

During the first round, both agencies allocated portions of their funding to achieve specific broadband policy goals. Of the $2.4 billion available through RUS, up to $1.2 billion was allocated for last-mile projects delivering high-speed access to rural consumers. Another $800 million was available for middle-mile projects to create facilities between anchor institutions that help communities tap into health, medical and education resources that might not otherwise be accessible. The remaining $325 million would be dedicated to a national reserve. NTIA allocated up to $1.2 billion for broadband infrastructure projects, $50 million for public computer center projects, $150 million for sustainable broadband adoption projects, and $200 million for a national reserve. The request for information encourages comments on whether the current allocations are satisfactory and maximize the impact of the nation’s broadband investment.

Another portion of the request for information seeks input on whether a portion of the remaining funds should be used to promote a regional economic development approach to broadband deployment. This option would focus the federal investment on communities that have worked together on a regional basis to develop an economic development plan. Using this option, NTIA and RUS could target funding toward both the short term stimulus of project construction and the region’s longer-term development of sustainable growth and quality jobs.

Read the announcement at: http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/11/0560.xml.