Aid Rules Limit States Funding Areas Lacking 25/3 Mbps

The Treasury Department released interim final rules Monday that would make broadband projects in areas that “lack access to a wireline connection capable of reliably delivering at least minimum speeds of 25 Mbps download and 3 Mbps upload” the only ones eligible for money from the $350 billion in state and local funding from the American Rescue Plan Act package. Congress allocated $10 billion of the state and local money specifically for broadband and other infrastructure projects (see 2103100065). Recipient governments have “broad flexibility” to decide how to allocate their share, Treasury said.

Households lacking such access “are generally not viewed as being able to originate and receive high-quality voice, data, graphics, and video telecommunications,” Treasury said. "This threshold is consistent with the FCC’s benchmark” and “is also consistent with thresholds used in other Federal programs.” Treasury said it’s collecting feedback, including whether the 25/3 Mbps requirement or another threshold is more “appropriate.” Funding recipients “are encouraged to avoid investing in locations that have existing agreements to build reliable wireline service with minimum speeds of 100 Mbps download and 20 Mbps upload by December 31, 2024, in order to avoid duplication of efforts and resources,” the interim rules said.

This would require projects to “be designed to deliver, upon project completion, service that reliably meets or exceeds symmetrical upload and download speeds of 100 Mbps.” There “may be instances in which it would not be practicable for a project to deliver such service speeds because of the geography, topography, or excessive costs,” the department said. “In these instances, the affected project would be expected to be designed to deliver, upon project completion, service that reliably meets or exceeds 100 Mbps download and between at least 20 Mbps and 100 Mbps upload speeds and be scalable to a minimum of 100 Mbps symmetrical.”

Recipients should “consider ways to integrate affordability options into their program design,” including by focusing “on projects that deliver a physical broadband connection by prioritizing projects that achieve last mile-connections,” Treasury said. They should prioritize “support for broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives.” Assistance “to households facing negative economic impacts due to COVID-19 is also an eligible use, including internet access or digital literacy assistance,” interim rules said.

Community Broadband Networks Initiative Director Christopher Mitchell castigated the plan. President Joe Biden’s administration “goes full pro-cable monopoly with these rules as I read them on first blush,” Mitchell tweeted. “Access is largely defined by how much it costs. Vast majority of kids stuck without home broadband have ‘access’ to it. The cable connects their home and is turned off due to the cost of turning it” on. “I really hope I'm wrong and embarrassed but this looks like the American Rescue Plan broadband funds are basically available only in the most remote areas,” he said. “If I were” Vice President Kamala Harris, selected by Biden to shepherd the broadband portion of his $2.3 trillion infrastructure proposal (see 2104290076), “I would be running as fast as possible away from being visibly linked to Biden on broadband," Mitchell said

The House Appropriations Financial Services Subcommittee plans a May 18 hearing focused on the push for “universal broadband” access in the wake of the pandemic. National Urban League Senior Vice President-Advocacy and Policy Joi Chaney, Center on Rural Innovation Executive Director Matt Dunne and Partnership for Public Service CEO Max Stier are set to testify. It begins at 10:30 a.m.