(AP) — Federal officials announced Thursday that $401 million in grants and loans are being distributed to entities in 11 states to fund programs to reach and improve internet speeds for rural residents, tribes and businesses.
“Connectivity is critical to the economic success of rural America,” U.S. Agriculture Secretary Tom Vilsack said in a statement tallying the number of people who could be helped at about 31,000 in states such as Washington. Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota and Texas.
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AP’S LATEST COVER
– Federals: $401 million will add broadband internet to rural US
– EXPLAINER: What the $65 billion broadband plan will do
WHERE DOES THE MONEY COME FROM?
Funding comes from the government’s ReConnect program and a grant funded by the Department of Agriculture’s Telecommunications Infrastructure Loan and Loan Guarantee Scheme.
Vilsack said the department plans more spending in the coming weeks as part of a $65 billion Biden administration plan to also use funds from the American Rescue Plan Act and the Bipartisan Infrastructure Law. to extend affordable high-speed Internet to every community in the United States.
WHERE DOES THE MONEY GO?
Rural areas and towns of 5,000 or fewer people are eligible, as well as federally recognized tribes. Applicants must serve an area where high-speed Internet download speeds are less than 100 megabits per second (mbps) and upload is less than 20 mbps. Applicant must commit to providing high-speed Internet access at 100 Mbps download and upload speeds at each location in their service area.
— The August 2021 ReConnect program allocated $167 million to projects in 12 states: Alaska, Arizona, Colorado, Georgia, Missouri, North Dakota, Oklahoma, South Carolina, Tennessee, Texas, Utah and Virginia.
– Earlier this month, the program allocated $21 million to expand high-speed internet in two rural counties in upstate New York.
— Thursday’s nearly $401 million in grants and loans will:
Alaska: Bristol Bay Telephone Cooperative, $34.9 million; Alaska Power & Telephone Wireless, $29.3 million; Unicom Inc., $31 million; Cordova phone, $21.4 million.
Arizona: Table Top Telephone Co., $3.7 million.
Arizona and Idaho: Midvale Telephone Co., $10.6 million.
Arizona and New Mexico: Valley Telephone Cooperative, $44.9 million.
Arkansas: Arkansas Telephone Co., $11.9 million.
California: The Volcano Telephone Co., $28.3 million; Ponderosa Telephone Co., $12.9 million.
Colorado: San Luis Valley Rural Electric Cooperative, $2 million.
Montana: Blackfoot Telephone Cooperative, $4 million; Nemont Telephone Cooperative, $25 million.
Montana and North Dakota: Reservation Telephone Cooperative, $18.5 million.
New Mexico: Continental Divide Electric Cooperative Inc., $3.7 million; ENMR Telephone Cooperative, $14.7 million; Penasco Valley Telephone Cooperative, $28.9 million; Tularosa Basin Telephone Co., $11.6 million.
Nevada: Uprise LLC, $27.2 million.
Texas: Central Texas Telephone Cooperative, $19.6 million; Telephone cooperative of five regions, $16.6 million.
PUBLISHABLE CONTEXT
The persistent divide in the United States between broadband haves and have-nots — dubbed the “digital divide” — became glaring as school, work and health care moved online during the coronavirus pandemic. .
The Federal Communications Commission has estimated that millions of Americans lack access to broadband at the speeds needed to work and study online – 25 Mbps download and 3 Mbps upload. Outside groups have made higher estimates.
Government grants to fund industry upgrades have focused on places where customers are scarce and companies have no incentives to build infrastructure because they might not get their money back.
The affordability of Internet services is also a concern. Mitch Landrieu, White House infrastructure coordinator, told reporters on Wednesday that the government’s infrastructure plan also included funds to provide a $30 monthly benefit to help low-income people pay their internet bills.