How Kentucky Gambled for Hundreds of Millions of Dollars From a Broadband Program It Didn't Qualify For

In the spring of 2015, KentuckyWired, the Bluegrass State's ambitious plan to bring high-speed internet access into rural areas, had ground to a halt. Officials were in talks with Macquarie Capital, an Australian investment bank known for organizing big infrastructure projects around the globe, to build and manage the new network. But the bank wanted $1.2 billion over three decades — money Kentucky didn't have on its own. To make the unique public-private partnership work, then-Gov. Steve Beshear (D-KY) and his administration needed to tap into a federal program that awarded money for broadband projects. And it was a long shot; the Federal Communications Commission had already signaled concern over Kentucky's eligibility. That's when Macquarie brought in a consultant to help: Frank Lassiter. His firm reassured state officials that federal support was winnable, coaching them on how to reapply with the FCC to win the millions they needed to make the Macquarie payments. It even produced a report suggesting additional millions were readily available from the federal government to offset construction costs. Lassiter's firm was wrong.