USDA announces $667 million funding to strengthen rural broadband network

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As part of the Biden administration’s commitment to bridging the digital divide in rural America through the ReConnect program, the US Department of Agriculture (USDA) has announced substantial funding of $667 million, which aims to revolutionize broadband accessibility in 22 states, alongside the Marshall Islands.

The USDA funding, consisting of grants, loans, and their combinations, will empower companies to address broadband inadequacies in areas struggling with speeds below the 100 megabits per second (Mbps) download and 20 Mbps upload threshold, therefore exceeding the benchmarks established by the Federal Communications Commission (FCC), which mandates minimum speeds of 25 Mbps down and 3 Mbps up.

Among the funding beneficiaries, the Scott County Telephone Cooperative, headquartered in Virginia, will receive an impressive grant of $25 million to enable them to connect an astounding 17,000 residents, over a thousand businesses, 37 farms, and nearly 50 educational facilities. Additionally, even smaller-scale projects will yield significant impacts. For instance, Wave Wireless in Iowa will receive nearly $500,000 in funding, enhancing connectivity for 228 residents, six commercial entities, and approximately 40 agricultural operations.

“The reality is, we have faced some challenging times in rural places, and this is a president who believes strongly in ensuring that investments are made in all parts of the country from the most-populated urban centres to the most remote rural places,” Tom Vilsack, USDA Agriculture Secretary.

Broader efforts to connect rural America

The financing for the ReConnect program comes from the Biden administration’s 2021 Bipartisan Infrastructure Law, which allocated a staggering $65 billion to expand access to affordable, high-speed broadband nationwide. Additionally, the newly established Broadband Equity, Access, and Deployment (BEAD) Program has designated $42 billion to states, empowering them to lead high-speed broadband projects, thus underlining the government’s commitment to bridging the digital divide.

Furthermore, to ensure the affordability of internet packages, the government has also approved the $14.2 billion Affordable Connectivity Program, which facilitates the extension of a subsidy initially designed to reduce internet package costs by $30 per month, with an even more substantial reduction of $75 for residents on tribal lands.

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