Innovation initiatives are seeing increased funding in some states as legislatures across the country begin to finalize budget bills and other legislation. SSTI continues to monitor these developments and this week we cover budget bills in Idaho that saw small increases to the Manufacturing Extension Partnership (MEP) program, as well as increases in the Small Business Development Center (SBDC) and STEM Action Center, and new funding for a computer science initiative. South Dakota will see an increase in funding for the Governor’s Office of Economic Development and West Virginia passed bills creating an SBIR/STTR matching grant program, support for community and technical college tuition assistance, expansion of broadband service, and other innovation-related initiatives in its budget that passed earlier in March.

As governors continue to roll out their State-of-the State addresses in the month of February, we continue to see a heavy focus on recovering from the pandemic. Given most state’s fiscal condition, governors have been generally hesitant to roll out new initiatives during this time, although broadband continues to receive attention, especially with the renewed attention surrounding its importance during the pandemic.

The Federal Communication Commission Chairman Ajit Pai outlined two new initiatives aimed at ensuring U.S. leadership in 5G and continuing efforts to close the digital divide. Pai announced his intent to create the Rural Digital Opportunity Fund, which he indicated would inject $20.4 billion into high-speed broadband networks in rural American over the next decade.

The Federal Communications Commission announced its second round of funding for new broadband investments through the Rural Digital Opportunity Fund (RDOF). It also revealed that it is “continuing its work to refocus the program to ensure that funding goes to unserved areas that need broadband,” and as a result dozens of winning bidders from the previous round have “chosen not to pursue buildout … .”

The product of a year-long initiative focused on addressing America’s crumbling infrastructure has been released two months early in an effort to help speed the economic recovery following the COVID-19 pandemic. The initiative, called Infrastructure: Foundation for Success, identifies four key federal priorities that should be addressed if America is to rebuild its infrastructure.

The Federal Communications Commission (FCC) estimates that nearly one-fourth of the rural population —14.5 million people — lack access to broadband services. In tribal areas, nearly one-third of the population lacks access. Even in areas where broadband is available, approximately 100 million Americans still do not subscribe to services.

As noted in our separate overview, the 25-page American Jobs Plan provides goals, highlights and proposals, but also raises questions about how proposals would be implemented and even exactly how much money would be spent.

A $7.17 billion Emergency Connectivity Fund (ECF) was established by the 2021 American Rescue Plan Act to help ease the educational impact on students of school closures in response to the Covid-19 pandemic. While much instruction transitioned to an online environment, many students were inadequately equipped to properly participate.

Gov. J.B Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) have announced a new project for interactive broadband mapping and speed test tools that is intended to help expand access to high-speed internet in communities across Illinois. The project entails the creation of the interactive Connect Illinois Broadband Map and the Illinois Broadband Lab.

Congress passed the bipartisan infrastructure framework, formally, the Infrastructure and Investment Jobs Act, and President Joe Biden is expected to sign it the week of Nov. 15. While small as a percentage of the trillion-dollar total, there are a number of proposed items that can support regional innovation economies, with broadband being the highest funded.

While the new administration is rolling out a new infrastructure proposal that includes $100 billion over an 8-year period for greater broadband coverage and affordability, the states have been busy in 2021 with their own broadband proposals. Governors across the country are responding to the digital divide that became even more obvious during the pandemic as students struggled to access online learning, individuals turned to the internet for telehealth appointments, and much of the workforce pivoted to remote work arrangements.

Several more State of the State addresses were delivered already this month, leaving just a few states yet to go and the pandemic and recovery from the pandemic, not surprisingly, continue to feature heavily in governors’ plans. Energy opportunities, tax cuts, broadband and shifts in the model for higher education are in play in this week’s review of addresses from California, Florida, New Hampshire and Wyoming.

As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states.

In a previous article, SSTI detailed the limitations of public funding in solving the country’s rural broadband issue. While increased public funding is certainly part of the equation to bring internet capabilities to the near 14 million people who do not have access, there is potential to leverage new innovative technologies to bridge the broadband gap across America.

Editor’s note: The Senate passed the Infrastructure and Investment Jobs Act on Aug. 10, 2021. This article has been updated to reflect the final amendments and new information on next steps for the legislation.

Since the widespread usage of the internet in the 1990s, the question of who has access to broadband and the definition of high-speed internet has bedeviled federal, state and local officials.  Attempts to map which addresses have access to high-speed service date back at least 20 years.

On June 26, 2023, the U.S. government announced allocations from the $42.45 Billion Broadband Equity, Access, and Deployment (BEAD) program. These funds, allocated to all 50 states, the District of Columbia, and five territories, are intended to close the digital divide in the U.S., as funding will be used to deploy or upgrade broadband networks to ensure that everyone in the U.S. has access to reliable, affordable, high-speed Internet service.

As more households rely on faster forms of internet, broadband internet service has begun to be treated as a necessity in the home and workplace. But its use has varied by generation; according to Pew Research Center, 99% of US adults ages 18-29 report using the internet, while only 75% of senior citizens (65+) can say the same.

Three states are holding gubernatorial elections this fall, with voters in one of those states (Louisiana) having already chosen a new governor to replace a term-limited incumbent. In the remaining states, Kentucky and Mississippi, elections will be held next week (Nov. 7), with the incumbents facing tough opponents in their reelection bids.

The Federal Communications Commission (FCC) recently released the first draft of a new national broadband map providing a more granular look at broadband service throughout the country.

On May 30, 2023, FCC released a broadband map that had been updated to reflect states' challenges to the availability data for more than 4 million locations throughout the U.S. Seventy-five percent of those challenges had been resolved in the new map. The new map reflected a net increase of more than one million new serviceable locations that had not appeared on the previous map.