Biden Administration Announces $930 Million In Grants To Expand Rural Internet Access

On June 16, the massive government initiative to increase internet access to every residence in the United States made a significant advancement alongside the unveiling of $930 million in funding for strengthening connections in the far-flung regions of Alaska, countryside Texas, and dozens of other regions where significant connectivity gaps still exist.

35 states and Puerto Rico are covered by the “Enabling Middle Mile Broadband Infrastructure” awards, which are a component of the Department of Commerce’s initiative to bring high-speed internet access and massive volumes of data over great distances.

The Middle Mile Grant Program received over 260 applications, totaling $7.47 billion in grant requests, reported to the Commerce Department. The organization mostly gave subsidies to telecom and utility firms, but it also set aside money for nonprofits and tribal governments. According to Gizmodo, the largest award, worth $88.8 million, was given to an Alaskan telecoms company that plans to establish a fiber optic network in a region of the state where 55% of people lack internet access. The majority of applicants received awards from the Commerce Department averaging $26.6 million. The administration believes that a number of the buildouts will be finished sooner than the current deadline of five years for grant recipients to conclude work on their projects.

The Department of Commerce has announced funding for building out the “middle mile” that will allow retail broadband providers to connect subscribers to the Internet. The middle mile, which is made up of high-capacity fiber lines that can transmit enormous amounts of content at very fast speeds, is the piece of the infrastructure required to provide internet access. Department officials compare it to the way the network of interstates connects communities.

The grants were made possible by the $65 billion in broadband funding provided by Congress as part of the $1 trillion infrastructure bill that Democratic Vice President Joe Biden signed into law in 2021. The Broadband Equity, Access, and Deployment (BEAD) program will award the majority of that money, $42.5 billion, to the states, in part based on new federal maps identifying places that aren’t connected.

One of the government’s numerous recent measures to reduce the digital divide in remote regions is financing. At the beginning of the year, the Federal Communications Commission established an accountability program to ensure that recipients of the Rural Digital Opportunity Fund correctly use the public monies they receive.

The Affordable Connectivity Program (ACP) brings high-speed internet connection to those who cannot afford it for $30 per month or less, but for qualifying homes, there will be no fee. Twenty internet service providers, including Verizon, Spectrum, AT&T, and Optimum, have joined with the White House on this initiative. At GetInternet.gov, anyone can determine whether they qualify for the no-cost service and submit an application.

The White House infrastructure coordinator, Mitch Landrieu, told AP News that “these connections are the productive machines carrying large amounts of data over very long distances.” The last mile links, from tribal territories to underserved rural and distant areas to critical facilities like medical facilities, educational institutions, libraries, and huge corporations, are being made by them.

The Department of Commerce promised $89 million to one Alaskan telecommunications operator as part of the program’s largest award to help build fiber-optic networks in areas of the state where 55% of the population lacks access to the internet. A California firm will receive a $73 million grant, and a Michigan Telco will receive $61 million. Grant recipients have five years to complete the broadband networks they were promised.

In a press release from October, the Department of National Telecommunications and Information Administration stated that it had received more than 235 applications for the program. Now, according to officials, the department is supporting the latest initiative for the “Internet for All” grant, which will cover 350 counties.

Wally Adeyemo, deputy secretary of the Treasury, stated in a press release that “digital connectivity is central to expanding economic opportunity in communities across the country.” This financing is a crucial component of the Biden-Harris Administration’s historic commitment to expand millions of Americans’ access to high-speed internet and provide them greater chances to fully engage in the 21st-century economy.