Tennessee to spend $500 million in American Rescue Plan funding on broadband

Tennessee will spend $500 million of its funding from the American Rescue Plan to expand broadband, though exactly where the money goes hinges on a statewide coverage map that’s still being developed. Governor Bill Lee said $400 million will fund grants for internet service providers, while the remaining $100 million will be used to subsidize broadband service for low-income families over the next four years. The $500 million in funds comes from the $3.72 billion that Tennessee received in the relief package. Lee also said the state later plans to spend an additional $100 million in state funds to expand broadband. In April 2021, officials announced the first phase of the funding won’t be distributed until spring of 2022 after a statewide, address-level coverage map is set to be completed. The second round of funding is planned for winter 2023. The map is being developed after a group of state and local governments called the Tennessee Advisory Commission on Intergovernmental Relations recommended officials take “matters into their own hands” when it comes to mapping the state’s broadband.