The Commerce Department's National Telecommunications and Information
Administration (NTIA) and the Department of Agriculture's Rural
Utilities Service (RUS) has received almost 2,200
applications requesting nearly $28 billion in funding for proposed
broadband projects reaching all 50 U.S. states and territories and the
District of Columbia.
This is the first round of American Recovery and
Reinvestment Act funding aimed at expanding broadband access and
adoption to help bridge the technological divide and create jobs
building Internet infrastructure, with $4 billion available through
loans, grants, and loan/grant combinations.
The Recovery Act provided a total of $7.2 billion to NTIA and RUS to
expand access to and adoption of broadband services. Of that funding,
NTIA will utilize $4.7 billion to deploy broadband infrastructure in
unserved and underserved areas in the United States, expand public
computer center capacity, and encourage sustainable adoption of
broadband service. RUS will invest $2.5 billion to facilitate broadband
deployment in primarily rural communities. Approximately $2.4 billion
from RUS and up to $1.6 billion from NTIA is available in this first
grant round.
Applications
came in from a diverse range of parties including state, local, and
tribal governments; nonprofits; industry; anchor institutions, such as
libraries, universities, community colleges, and hospitals; public
safety organizations; and other entities in rural, suburban, and urban
areas.
"Applicants requested nearly seven times the
amount of funding available, which demonstrates the substantial
interest in expanding broadband across the Nation," said Lawrence E.
Strickling, Assistant Secretary for Communications and Information and
Administrator of NTIA. "We will move quickly but carefully to fund the
best projects to bring broadband and jobs to more Americans."
"The
overwhelming response we received underscores the extensive interest in
expanding broadband across the country. Rural communities clearly
recognize that broadband can expand their economic opportunities and
create jobs," said Jonathan Adelstein, Administrator, Rural Utilities
Service, USDA. "The Obama Administration's goal is to target funds to
serve areas of greatest need. The big demand for loans as well as
grants demonstrates that we can leverage private investment with USDA's
$2.5 billion to deliver the greatest bang for the taxpayers' buck."
A
preliminary analysis of applicant-reported data shows that NTIA and RUS
received requests for grants and loans totaling nearly $28 billion.
When including about $10.5 billion in matching funds committed by the
applicants, there are over $38 billion in proposed broadband projects.
The applications break down as follows:
Infrastructure
- More
than 260 applications were filed solely with NTIA's Broadband
Technology Opportunities Program (BTOP), requesting over $5.4 billion
in grants to fund broadband infrastructure projects in unserved and
underserved areas.
- More
than 400 applications were filed solely with RUS's Broadband
Initiatives Program (BIP), requesting nearly $5 billion in grants and
loans for broadband infrastructure projects in rural areas.
- More
than 830 applications were filed with both NTIA's BTOP and RUS's BIP,
requesting nearly $12.8 billion in infrastructure funding. (Applicants
for infrastructure projects in rural areas must apply to BIP but were
given the opportunity to jointly apply to BTOP in case RUS declines to
fund their application.)
Sustainable Broadband Adoption
- More
than 320 applications were filed with NTIA requesting nearly $2.5
billion in grants from BTOP for projects that promote sustainable
demand for broadband services, including projects to provide broadband
education, awareness, training, access, equipment or support,
particularly among vulnerable population groups where broadband
technology has traditionally been underutilized. (The Recovery Act
directs NTIA to make at least $250 million available for programs that
encourage sustainable adoption of broadband services, of which up to
$150 million is allocated in this first round of grants.)
Public Computer Centers
- More
than 360 applications were filed with NTIA requesting more than $1.9
billion in grants from BTOP for public computer center projects, which
will expand access to broadband service and enhance broadband capacity
at public libraries, community colleges, and other institutions that
provide the benefits of broadband to the general public or specific
vulnerable populations. (The Recovery Act directs NTIA to make at least
$200 million available for expanding public computer center capacity,
of which up to $50 million is allocated in this first round of grants.)
In
the coming weeks, NTIA and RUS will post online a searchable database
containing summaries of all applications received. The dollar figures
cited today represent applicants' self-reported totals from proposals
submitted before the August 20, 2009, deadline at 5 p.m. ET. These
results are preliminary estimates, however, and may change as the
applications are reviewed for errors, omissions, and duplications.