There are a number of federal broadband funding programs helping to expand high-speed internet access across the country. For carriers looking to help build projects that connect the unconnected, knowing the nuances, timelines and compliance requirements is critical to success.
By John Ellis
Published: July 18, 2024
Since the early days of the internet, broadband funding programs have played a crucial role in expanding internet access, particularly in underserved and rural areas, helping to bridge the digital divide. Today, there are a variety of government programs that aim to provide funding to ensure equitable access to high-speed internet, fostering growth and ensuring all communities can participate in the digital economy.
While emerging funding programs are expected to accelerate digital equity by increasing broadband access, the variety of opportunities and complexities within each one can make it challenging for service providers to navigate the various programs. There are multiple federal agencies involved, and state-level broadband offices.
With compliant, industry-leading solutions, Corning can help simplify funded deployment and help our customers navigate the many different programs and compliance nuances involved in connecting the unconnected across the country.
A few details on each program and how they differ:
BEAD (Broadband Equity, Access, and Deployment)
The overarching goal of BEAD is to expand high-speed internet access to all Americans. The program seeks to close that gap by extending broadband to hard-to-reach areas that need a lot of funding to incentivize providers to go to those areas. Fiber is the most favorable broadband technology to facilitate this goal – it’s future-ready and can be upgraded down the road without replacing the cables.
BEAD is available for each state and U.S. territory — and every state or territory is conducting its own independent process. In total, there are 56 offices conducting different bid and challenge processes. Each state also runs on its own timeline and offers unique allocations.
It’s a program that is unprecedented in scale and is driving a lot of the requirements and timelines for other state and local funding solutions, including requirements under the Build America, Buy America – or BABA – Act. The intent of BABA is to ensure materials for projects like broadband infrastructure are produced in the United States, but the exact specifications and how they apply to each source of funding, can be different.
With so many different programs running at the same time, there are a lot of hoops to jump through. When BEAD funding starts flowing, our customers can count on us for BABA-compliant end-to-end passive optical solutions.
BEAD Rules and Regulations
- BEAD has its own BABA waiver process to promote broad participation in the program and ensure awardees have access to necessary products to fulfill their obligations under the program.
BEAD Funding Timeline
- The timeline of BEAD funding is a complex process. States submit five-year action plans and two initial proposals, Volumes I and II. Volume I details the challenge process which will establish the list of eligible locations. Volume II details the application and selection process. Upon the approval of Volume II, states have one year to submit a final proposal which includes the list of awardees.
- The process can vary from state to state, and individual states are at different points on the BEAD timeline. At time of writing, 13 states and 2 territories have both Volume I and II proposals approved. Louisiana, West Virginia and Nevada were the first to reach this stage.
- The amount of funding also varies – Texas, for example, has the biggest allocation in $3.3 billion, although the state broadband office is only in the early stages of proposal submissions.
Rural Digital Opportunity Fund (RDOF)
With a budget of up to $20.4 billion over 10 years, RDOF will bring fixed broadband and voice service to millions of unserved homes and small businesses in rural America. The first round of funding awarded $9 billion. However, over a third of that has been defaulted and it is unclear whether there will be another funding round in the future. Locations assigned to RDOF or other federal programs are not BEAD-eligible, creating another layer of complexity for carriers looking to secure project funding.
The program uses a two-phase competitive reverse auction that prioritizes higher network speeds and lower latency to ensure the development of robust, sustainable high-speed networks that meet the needs of consumers now and in the future. It’s being administered by the Federal Communications Commission (FCC) rather than the National Telecommunications and Information Administration (NTIA) which oversees BEAD and several other programs on this list.
RDOF Rules and Regulations:
- Recipients must provide broadband and voice services to all locations within their awarded area.
- Recipients must deploy services to a certain percentage of locations within a set timeframe, with 40% of required locations by year three and an additional 20% in the following years, for completion by year six.
- Recipients must submit annual reports, including a list of geocoded locations and certifications that service milestones have been met. If a recipient doesn't meet a milestone, they must notify the FCC Wireline Competition Bureau and explain why. If they don't notify the FCC by March 1 after the third year, they may be in default and subject to support recovery.
RDOF Funding Timeline
- RDOF funds will be disbursed over a period of 10 years. Carriers must complete deployment by the end of the eighth year to all locations in areas eligible for support and must meet interim deployment milestones along the way.
Tribal Broadband Connectivity
The Tribal Broadband Connectivity Program is a $3 billion program, intended to support broadband deployment on tribal lands, as well as for the adoption of technologies like telehealth, distance learning, broadband affordability and digital inclusion.
In the first round of funding, the NTIA awarded $1.78 billion to 191 Tribal entities. A second round of funding will award another $1 billion. The application window for Round 2 closed in March.
ReConnect Loan and Grant Program
The ReConnect Program is administered by the U.S. Department of Agriculture (USDA), to provide loans, grants, and loan-grant combinations to support broadband deployment in rural areas of the U.S. that lack adequate broadband access. The goal is to then stimulate long-term economic growth and create new opportunities in these regions.
Since 2019, the USDA has invested a total of $5.13 billion in projects that will create or improve high-speed internet access for rural customers across 35 states and territories through ReConnect.
ReConnect Compliance
- Recipients are required to report certain financial, operational, construction, and performance data on a quarterly and/or annual basis.
- Projects must meet a 100 Mbps symmetrical minimum service requirement in all proposed service areas
- The reporting requirements vary depending on the type of financial assistance that was approved for the entity.
ReConnect Timeline
- The application window for the fifth round of funding closed on May 28, 2024, and funding continues to be distributed.
Enabling Middle Mile Broadband Infrastructure Program
Middle mile infrastructure broadly refers to the mid-section of internet infrastructure that carries large amounts of data at high speeds over long distances without connecting directly to an end-user location, like homes or businesses. The NTIA refers to it as “the interstate highways of the internet,” and it’s critical for bridging the digital divide.
With $1 billion in funding, this federal program (not to be confused with a similarly-named state program in California) aims to reduce the cost of bringing high-speed internet to underserved communities. By connecting to major networks, middle mile infrastructure enables local networks to ensure reliable high-speed service for even the most remote communities. Once the middle mile “backbone” has been established, individual homes and businesses can be connected. An additional goal of the program is to increase the resilience of internet infrastructure.
Compliance
- Grant recipients may only use award funds to pay for allowable costs under the Middle Mile Grant Program.
- Eligible recipients must demonstrate the completion of 40% of project miles by the end of the second year after the award date, 60% by the end of the third year, 80% by the end of the fourth year, and 100% by the end of the fifth year.
- Middle Mile requires recipients to comply with all BABA requirements unless a waiver applies.
Timeline
- All funding for grant awards from the program has been awarded and fundings are being distributed by local authorities. A 5-year implementation window is expected to run through at least 2026.
Capital Projects Fund (CPF)
Administered by the Department of the Treasury, CPF provides $10 billion to fund critical capital projects that enable work, education, and health monitoring in response to public health emergencies. Initially created in response to challenges brought on by the pandemic, the program aims to ensure that all communities have access to high-quality modern infrastructure and critical services.
Unlike some of the other programs on this list that are more closely administered by federal agencies, CPF is mostly aimed at boosting funding to state-run broadband deployments.
Rules and Regulations
- Eligible projects must invest in capital assets designed to directly enable work education and health monitoring; address a critical need that resulted from or was made apparent by the COVID-19 pandemic; address a critical need in the community.
- Capital Projects Fund recipients are required to meet certain compliance and reporting requirements, which may vary by eligible use and project type.
Timeline
- The deadline to submit grant plans ended in 2022. Funds are continuing to be distributed, with $279 million recently awarded to Pennsylvania for critical capital projects.
State Programs
Various state programs continue broadband funding as well, with recent activity in California, Indiana, and Minnesota among others. With state level programs, local providers can often be more up to date on the latest opportunities and eligibility requirements.
In the digital age, broadband funding programs play a vital role in bridging the digital divide by ensuring communities in rural areas gain access to high-speed internet. These programs are the first step toward digital inclusion — but the journey doesn’t end with funding. To ensure successful deployments, recipients need support from trusted partners to access compliant, easy-to-use solutions, including BABA-compliant end-to-end passive optical solutions for BEAD deployments and more.
Click here to learn more about our community broadband solutions or fill out the form below to speak with one of our experts.
