ReConnect Loan and Grant Program

The great storyteller Aesop is credited with creating a popular fable involving flies and honey that can be summarized as, “It is possible to have too much of a good thing.” This lesson is directly on point for federal efforts to extend broadband networks to unserved Americans. At this moment, the Trump Administration is putting the finishing touches on the latest stage of the Commerce Department’s distribution of over $22 billion in broadband funding, which, if all goes according to plan, will bring terrestrial or satellite broadband to those without options.

The industry and the press have been laser-focused on Broadband Equity, Access and Deployment grants for the last few years. It’s easy to forget that there are a lot of federal broadband grants that have been issued under other grant programs, many of which are facing completion deadlines.

The Senate voted 60-40 on November 10 to pass a continuing resolution that would reopen the government, plus some appropriations bills. One of the pieces of legislation would provide about $109 million for rural broadband programs. The US Department of Agriculture’s (USDA) ReConnect program would see $50,750,000 of that.

President Donald Trump’s nominee to serve as undersecretary for rural development at the Department of Agriculture, Glen Smith, pledged to review how the agency can better coordinate its rural broadband expansion efforts. During his nomination hearing before the Senate Agriculture Committee, Smith equated high-speed internet access with a “higher quality of life” and repeatedly called for improving broadband infrastructure to help revitalize rural economies. Sen Joni Ernst (R-IA), pressed Smith to address what she described as “duplicative” efforts among the government’s 133 broadband progr

Sen Roger Marshall (R-KS) reintroduced the bipartisan ReConnecting Rural America Act alongside Senator Peter Welch (D-VT). This legislation will strengthen the U.S. Department of Agriculture’s ReConnect Loan and Grant Program.

Is there any practical future for the US Department of Agriculture's ReConnect program? The Senate Appropriations Committee recently approved the fiscal year 2026 budget for the Department of Agriculture. Buried within that budget is $100 million for new ReConnect loans or grants. It’s still early in the federal budget process, and the $100 million slated for next year is a preliminary number, but it’s already lower than previous annual allocations to the program. ReConnect has been a popular program, particularly with cooperatives and small telephone companies.

The House Appropriations Committee advanced numerous subcommittee allocations for Fiscal Year 2026. The measure was approved with a vote of 35 to 28. The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act provides a total discretionary allocation. Earmarks include $643 million in Community Project Funding for 509 projects requested by 192 Members. There is $3.77 billion for Rural Development programs, prioritizing funding for home ownership and infrastructure lending, including $90 million for the ReConnect broadband program.

NTCA - The Rural Broadband Association, in partnership with several rural stakeholders, sent a letter to members of the House and Senate Appropriations Committees in support of sufficient 2026 funding for the telecommunications programs overseen by the Rural Utilities Service within the Department of Agriculture. The organizations wrote, "Congress’s continued support for funding RUS telecommunications and broadband programs remains vital. A strong public-private partnership is essential to America’s quest to secure and maintain global broadband preeminence.

The most recent White House Budget proposes eliminating the ReConnect grant program, which is administered by the Rural Utilities Service, a branch of the U.S. Department of Agriculture. ReConnect has been a popular funding program in rural areas and was one of the few sources of federal broadband grants when it began. It is an interesting program because awards include both grants and low-interest rate loans. Congress purposefully put the ReConnect program at the RUS.

Reps Zach Nunn (R-IA), Gabe Vasquez (D-NM) and Eric Sorensen (D-IL) introduced the ReConnecting Rural America Act, bipartisan legislation that would permanently authorize and improve the United States Department of Agriculture’s (USDA) ReConnect Program, which delivers broadband internet to underserved rural communities. The ReConnecting Rural America Act would codify and enhance the ReConnect Program within the Rural Electrification Act, establishing stronger minimum broadband speeds and ensuring federal support reaches the communities most in need of internet service upgrades.