Treasury Announces Funds to Increase Access to High-Speed Internet

By Gordon HopkinsJefferson County Commissioners are making improved internet coverage for those areas underserved a priority. Some assistance from the federal government may be in the offing.On Tuesday, August 30, the U.S. Department of the Treasury announced that Nebraska was one of five states to receive funds that could be used for broadband expansion under the American Rescue Plan’s Coronavirus Capital Projects Fund (CPF). The other states are Connecticut, Indiana, North Dakota and Arkansas. These states are approved to receive approximately $408 million under the American Rescue Plan and is intended to connect more than 90,000 homes and businesses to affordable, high-speed internet.County Commissioner Gale Pohlmann explained, “Nebraska will receive $87.7 million statewide, and as I understand it this money will be added to the Nebraska (Broadband) Bridge Program. These funds will also help the public/private partnerships as we hopefully will not have to commit as many of our local dollars to complete an expansion project.”The CPF provides $10 billion to states, territories, freely associated states, and Tribal governments to fund critical capital projects that enable work, education, and health monitoring in response to the public health emergency. A key priority of the program is to make funding available for reliable, affordable broadband infrastructure and other digital connectivity technology projects, with the ultimate goal for every American to have access to reliable, affordable high-speed internet.In addition to the $10 billion provided by the CPF, many governments are using a portion of their state and local Fiscal Recovery Funds (SLFRF) toward meeting that goal.The need for high-speed internet became more pronounced when the country was hit by the COVID-19 pandemic. The result was more people than ever telecommuting. Students, also, attended classes from home for much of the school year. When preparing classes for remote learning, several members of the Fairbury Public School Board worried about those students who did not have access to reliable internet service.“The pandemic upended life as we knew it—from work to school to connecting with friends and family—and exposed the stark inequity in access to affordable and reliable high-speed internet in communities across the country, but especially in rural, Tribal, and low-income communities,” said Deputy Secretary Wally Adeyemo. “This funding will lay the foundation for the Biden-Harris Administration’s historic investments to increase access to high-speed internet and reduce broadband bills for American households and businesses.”According to the Department of the Treasury, the state plans approved in this group will support broadband infrastructure and are designed, upon project completion, to deliver reliable internet service that meets or exceeds symmetrical download and upload speeds of 100 megabits per second (Mbps), speeds that are needed for a household with multiple users to simultaneously access the internet to telework and access education and health monitoring. Treasury designed its guidance to prioritize connecting families and business with poor and inadequate service—particularly those in rural and remote areas. Treasury also requires states to explain why communities they have identified to be served with funds from the CPF have a critical need for those projects.Jefferson CountyJefferson County, in conjunction with Diode Communications, already has a grant pending with the Public Service Commission. Last week, commissioners learned that there will be no challenge to the grant by other providers. A final decision is expected December 6 of this year.That grant will provide $800,000. Along with $300,000 from the county and another $300,000 from Diode Communications, creating a total of $1.4 million, it is expected to reach 102 homes in Jefferson County.County Commissioner Mark Schoenrock told FJN, “While that may sound like a lot of money, when you consider the area and the work involved, it really isn’t.”Pohlmann concurred, “These monies will definitely enhance the dollars available over the next few years coming through the Bridge Program. These funds will also help the public/private partnerships as we hopefully will not have to commit as many of our local dollars to complete an expansion project.”However, there is a caveat that may prevent Jefferson County from taking full advantage of it.As currently written, this new grant can only be used for villages and second-class cities. Most of the need in Jefferson County is in the rural areas, which would not qualify. Commissioners hope to see that requirement changed.Schoenrock said, “The Nebraska Rural Broadband Task Force will likely be leading the effort to change the law with the legislature.”Schoenrock also said he would be happy to testify in front of the legislature, should the need arise.In accordance with Treasury’s guidance, each state’s plan requires service providers to participate in the Federal Communications Commission’s (FCC) new Affordable Connectivity Program (ACP). The ACP helps ensure that households can afford the high-speed internet they need for work, school, healthcare, and more by providing a discount of up to $30 per month (or up to $75 per eligible household on Tribal lands). The FCC estimates that about 48 million families are eligible for the program—nearly 40 percent of households. President Biden and Vice President Harris recently announced the administration had secured commitments from 20 leading internet service providers—covering more than 80 percent of the U.S. population—to offer all ACP-eligible households high-speed, high-quality internet plans for no more than $30 per month. As a result, these households will receive internet access at no cost, helping to close the digital divide for millions of Americans who could not previously have afforded internet service. Beyond the ACP, Treasury’s guidance requires recipients to consider whether the federally funded networks will be affordable to the target markets in their service area and encourages recipients to require that a federally funded project offer at least one low-cost option at speeds that are sufficient for a household with multiple users.The Department of Treasury will continue approving state and Tribal plans on a rolling basis.

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