USDA to Make Up to $1.15 Billion Available to Help People Living in Rural Communities Access High-Speed Internet

On November 24 the US Department of Agriculture (USDA) will begin accepting applications for up to $1.15 billion in loans and grants to expand the availability of broadband in rural areas. USDA is making the funding available through the ReConnect Program. The Department plans to make available up to $200 million in ReConnect Program loans, up to $250 million in loan/grant combinations, up to $350 million in grants with a 25 percent matching requirement, and up to $350 million in grants with no matching requirement for projects in tribal and socially vulnerable communities.

To be eligible for ReConnect Program funding, an applicant must serve an area without broadband service at speeds of 100 megabits per second (Mbps) (download) and 20 Mbps (upload), and commit to building facilities capable of providing broadband service at speeds of 100 Mbps (download and upload) to every location in its proposed service area. In making funding decisions, USDA will prioritize projects that will serve low-density rural areas with locations lacking internet access services at speeds of at least 25 Mbps (download) and 3 Mbps (upload). In making funding decisions, the USDA will also consider, among other things, the economic needs of the community to be served; the extent which a provider will offer affordable service options; a project’s commitment to strong labor standards; and whether a project is serving tribal lands or is submitted by a local government, Tribal Government, non-profit or cooperative. USDA has simplified the application process and has expanded the program significantly. For example, ReConnect will now offer 100 percent grants for certain projects on tribal lands and in socially vulnerable communities.