USDA’s ReConnect Program: Expanding Rural Broadband

Changes from January 26, 2022 to December 14, 2022

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USDA’s ReConnect Program: Expanding Rural
~~January 26~~December 14, 2022 , 2022
Broadband
Lisa S. Benson
In 2018, Congress provided the Secretary of Agriculture authority to establish a new In 2018, Congress provided the Secretary of Agriculture authority to establish a new
broadband Analyst in Agricultural Analyst in Agricultural
~~broadband~~ loan and grant pilot program (the ReConnect Program) to help close the loan and grant pilot program (the ReConnect Program) to help close the
~~Policy~~
digital divide and expand digital divide and expand Policy broadband deployment in rural areas. The Federal broadband deployment in rural areas. The Federal

Communications Commission found in 2019 Communications Commission found in 2019 that approximately 14.5 million Americans that approximately 14.5 million Americans
lack access to broadband, and more than 11 million of them live in rural areas. The lack access to broadband, and more than 11 million of them live in rural areas. The

Coronavirus Disease 2019 (COVID-19) pandemic highlights this Coronavirus Disease 2019 (COVID-19) pandemic highlights this gap between those with access to broadband and gap between those with access to broadband and
those without access, known as the “digital divide.” those without access, known as the “digital divide.”
For-profit internet service providers supply the majority of broadband access in the United States. These providers For-profit internet service providers supply the majority of broadband access in the United States. These providers
typically build the infrastructure needed to deploy broadband to premises within their service areas. Internet typically build the infrastructure needed to deploy broadband to premises within their service areas. Internet
service providers charge monthly user fees to recoup infrastructure costs, cover the cost to provide retail service providers charge monthly user fees to recoup infrastructure costs, cover the cost to provide retail
broadband service, and make a profit. Providers tend to deploy broadband to areas where they can reach a high broadband service, and make a profit. Providers tend to deploy broadband to areas where they can reach a high
number of people at the lowest cost. Thus, they tend to avoid deploying broadband to areas with high number of people at the lowest cost. Thus, they tend to avoid deploying broadband to areas with high
infrastructure costs and small populations, such as rural areas. infrastructure costs and small populations, such as rural areas.
Congress provided the underlying authority for the Secretary of Agriculture to establish a new broadband loan and Congress provided the underlying authority for the Secretary of Agriculture to establish a new broadband loan and
grant pilot program through the passage of the Agriculture, Rural Development, Food and Drug Administration, grant pilot program through the passage of the Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2018 (P.L. 115-141). The pilot program later became known as the and Related Agencies Appropriations Act, 2018 (P.L. 115-141). The pilot program later became known as the
ReConnect Program. The U.S. Department of Agriculture’s Rural Utilities Service (RUS) administers the ReConnect Program. The U.S. Department of Agriculture’s Rural Utilities Service (RUS) administers the
program, which provides loans, grants, and loan/grant combinations to build and enhance broadband program, which provides loans, grants, and loan/grant combinations to build and enhance broadband
infrastructure in eligible rural service areas. Under the current round of funding, infrastructure in eligible rural service areas. Under the current round of funding, eligible service areas are defined are defined
as areas where 90% or more of households lack broadband access at speeds of at least 100 megabits per second as areas where 90% or more of households lack broadband access at speeds of at least 100 megabits per second
download and 20 megabits per second upload (i.e., 100/20 Mbps). ReConnect projects are to provide broadband download and 20 megabits per second upload (i.e., 100/20 Mbps). ReConnect projects are to provide broadband
access to all premises within their service areas at speeds of at least 100/100 Mbps. access to all premises within their service areas at speeds of at least 100/100 Mbps.
Congress has provided funding for the ReConnect Program through annual appropriations acts; the Coronavirus Congress has provided funding for the ReConnect Program through annual appropriations acts; the Coronavirus
Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136); and the Infrastructure Investment and Jobs Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136); and the Infrastructure Investment and Jobs
Act (IIJA; P.L. 117-58). Congress appropriated $600 million for the program in FY2018, $550 million in FY2019, Act (IIJA; P.L. 117-58). Congress appropriated $600 million for the program in FY2018, $550 million in FY2019,
$655 million in FY2020, and $635 million in FY2021 through appropriations acts. Congress appropriated $655 million in FY2020, and $635 million in FY2021 through appropriations acts. Congress appropriated ~~$1.926~~
approximately $2.363 billion for the ReConnect billion for the ReConnect Program in FY2022. Congress appropriated $1.926 billion through the Infrastructure Investment and Jobs Act (P.L. 117-58, Division J, Title I) and $436.605 million through the Consolidated Appropriations Act, 2022 (P.L. 117-103). As of December 2022, RUS has awarded $3.127 billion in ReConnect Program funding for 282 projects in 43 states and U.S. territories through three rounds of funding~~Program through the IIJA (P.L. 117-58) for FY2022. As of October 2021, RUS has~~
~~awarded $1.5 billion in ReConnect Program funding for 181 projects through two rounds of funding. In October~~
~~2021, RUS announced the application period for the third round of funding for the ReConnect Program. RUS has~~
~~made $1.15 billion available to fund third round applications~~. .
Congress and some stakeholders have identified issues related to the ReConnect Program, including funding Congress and some stakeholders have identified issues related to the ReConnect Program, including funding
levels, extent of service to rural areas, and the potential for duplication of broadband networks. In addition to P.L. levels, extent of service to rural areas, and the potential for duplication of broadband networks. In addition to P.L.
117-58, seven other bills introduced in the 117th Congress would affect the ReConnect Program. The bills would 117-58, seven other bills introduced in the 117th Congress would affect the ReConnect Program. The bills would
combine the ReConnect Program and Rural Broadband Program (H.R. 4374, H.R. 3369), add safeguards to avoid combine the ReConnect Program and Rural Broadband Program (H.R. 4374, H.R. 3369), add safeguards to avoid
duplication across ReConnect projects and other federally funded broadband projects (H.R. 3435, H.R. 4825, S. duplication across ReConnect projects and other federally funded broadband projects (H.R. 3435, H.R. 4825, S.
944), and expand the allowable activities that could be funded through the ReConnect Program (H.R. 2400, H.R. 944), and expand the allowable activities that could be funded through the ReConnect Program (H.R. 2400, H.R.
3654). Additional policy options Congress could consider regarding the ReConnect Program might include 3654). Additional policy options Congress could consider regarding the ReConnect Program might include
addressing broadband affordability in rural areas and training and education to increase broadband adoption addressing broadband affordability in rural areas and training and education to increase broadband adoption
among rural residents. among rural residents.
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Introduction
According to the Federal Communications Commission (FCC), approximately 14.5 million According to the Federal Communications Commission (FCC), approximately 14.5 million
Americans lack access to broadband, and more than 11 million of those Americans live in rural Americans lack access to broadband, and more than 11 million of those Americans live in rural
areas.1 Some stakeholders have viewed access to broadband (i.e., high-speed internet) at home as areas.1 Some stakeholders have viewed access to broadband (i.e., high-speed internet) at home as
critical during the Coronavirus Disease 2019 (COVID-19) pandemic.2 Consequently, the critical during the Coronavirus Disease 2019 (COVID-19) pandemic.2 Consequently, the
pandemic has highlighted the gap between people with access to broadband and those without pandemic has highlighted the gap between people with access to broadband and those without
access, known as the “digital divide.”3 access, known as the “digital divide.”3
In 2018, Congress provided the underlying authority for the Secretary of Agriculture to establish In 2018, Congress provided the underlying authority for the Secretary of Agriculture to establish
a new broadband loan and grant pilot program to help close the digital divide and expand a new broadband loan and grant pilot program to help close the digital divide and expand
broadband deployment in rural areas. The pilot program later became known as the ReConnect broadband deployment in rural areas. The pilot program later became known as the ReConnect
Program. The U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS) administers Program. The U.S. Department of Agriculture (USDA) Rural Utilities Service (RUS) administers
the ReConnect Program, which provides loans, grants, and loan/grant combinations to build and the ReConnect Program, which provides loans, grants, and loan/grant combinations to build and
enhance broadband infrastructure in rural communities. This report explores enhance broadband infrastructure in rural communities. This report explores
 broadband access in rural America;  broadband access in rural America;
 the ReConnect Program (i.e., program authority, funding, and awards);  the ReConnect Program (i.e., program authority, funding, and awards);
 comparisons between the ReConnect Program and other USDA broadband  comparisons between the ReConnect Program and other USDA broadband
programs; programs;
 the program’s effectiveness and related factors;  the program’s effectiveness and related factors;
 bills proposed by the 117th Congress that would affect the program; and  bills proposed by the 117th Congress that would affect the program; and
 potential policy options related to the ReConnect program.  potential policy options related to the ReConnect program.
Broadband Access in Rural America
The FCC found that in 2019, an estimated 17% of people living in rural areas in the United States The FCC found that in 2019, an estimated 17% of people living in rural areas in the United States
lacked broadband access, and 1% of people living in urban areas lacked broadband access.4 The lacked broadband access, and 1% of people living in urban areas lacked broadband access.4 The
FCC sets the performance speed benchmark that establishes the level at which fixed broadband FCC sets the performance speed benchmark that establishes the level at which fixed broadband
service provides advanced telecommunications capabilities. FCC uses this benchmark to service provides advanced telecommunications capabilities. FCC uses this benchmark to
determine whether areas have access to broadband. The FCC set the performance speed determine whether areas have access to broadband. The FCC set the performance speed
benchmark at 25 megabits per second download and 3 megabits per second upload (25/3 Mbps). benchmark at 25 megabits per second download and 3 megabits per second upload (25/3 Mbps).
Fixed broadband includes broadband provided through fiber optic cable, cable modem, digital Fixed broadband includes broadband provided through fiber optic cable, cable modem, digital
subscriber line, fixed wireless, and satellite. Researchers have identified three factors that subscriber line, fixed wireless, and satellite. Researchers have identified three factors that
contribute to the digital divide between rural and urban areas: contribute to the digital divide between rural and urban areas:
1. 1. Cost. It is more expensive to build and maintain broadband infrastructure in rural It is more expensive to build and maintain broadband infrastructure in rural
areas compared with urban areas. areas compared with urban areas.

1 Federal Communications Commission (FCC), 1 Federal Communications Commission (FCC), Fourteenth Broadband Deployment Report,, FCC 21-18, January 19, FCC 21-18, January 19,
2021. That report is in response to Section 706 of the Telecommunications Act of 1996, which requires the FCC to 2021. That report is in response to Section 706 of the Telecommunications Act of 1996, which requires the FCC to
report annually on whether advanced telecommunications are being deployed to all Americans and to take action if not. report annually on whether advanced telecommunications are being deployed to all Americans and to take action if not.
2 John Lai and Nicole O. Widmar, “Revisiting the Digital Divide in the COVID Era,” 2 John Lai and Nicole O. Widmar, “Revisiting the Digital Divide in the COVID Era,” Applied Economic Perspectives
and Policy, vol. 43, no. 1 (March 2021), pp. 458-464. , vol. 43, no. 1 (March 2021), pp. 458-464.
3 Koen Salemink, Dirk Strijker, and Gary Bosworth, “Rural Development in the digital age: A systemic literature 3 Koen Salemink, Dirk Strijker, and Gary Bosworth, “Rural Development in the digital age: A systemic literature
review on unequal ICT availability, adoption and use in rural areas,” review on unequal ICT availability, adoption and use in rural areas,” Journal of Rural Studies,, vol. 54 (August 2017), vol. 54 (August 2017),
pp. 360-371 (hereinafter Salemink, Strijker, and Bosworth, “Rural Development in the Digital Age,” 2017). pp. 360-371 (hereinafter Salemink, Strijker, and Bosworth, “Rural Development in the Digital Age,” 2017).
4 FCC, 4 FCC, Fourteenth Broadband Deployment Report,, FCC 21-18, January 19, 2021. FCC 21-18, January 19, 2021.
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2. 2. Population. Rural areas have smaller populations and population density Rural areas have smaller populations and population density
compared with urban areas. compared with urban areas.
3. 3. Adoption. Rural residents tend to have lower adoption rates for broadband than Rural residents tend to have lower adoption rates for broadband than
urban residents.5 urban residents.5
High Costs and Small Populations
For-profit internet service providers (ISPs) supply the majority of U.S. broadband access.6 These For-profit internet service providers (ISPs) supply the majority of U.S. broadband access.6 These
providers typically build the infrastructure needed to deploy broadband to premises within their providers typically build the infrastructure needed to deploy broadband to premises within their
service areas. The U.S. Department of Transportation estimates that it costs an average of $27,000 service areas. The U.S. Department of Transportation estimates that it costs an average of $27,000
to build one mile of fiber broadband infrastructure.7 ISPs charge monthly user fees to recoup to build one mile of fiber broadband infrastructure.7 ISPs charge monthly user fees to recoup
infrastructure costs, cover the cost to provide retail broadband service, and make a profit.8 Rural infrastructure costs, cover the cost to provide retail broadband service, and make a profit.8 Rural
areas often are geographically large and can include rough terrain, such as mountains. Building areas often are geographically large and can include rough terrain, such as mountains. Building
broadband infrastructure in rural areas is often more expensive than in urban areas.9 In addition, broadband infrastructure in rural areas is often more expensive than in urban areas.9 In addition,
rural areas have lower populations than urban areas, which often results in fewer potential rural areas have lower populations than urban areas, which often results in fewer potential
customers to pay monthly user fees. customers to pay monthly user fees.
Researchers have identified three operating models for deploying broadband to rural areas.10 Researchers have identified three operating models for deploying broadband to rural areas.10
 The  The retail model involves a single entity that builds, owns, and operates the involves a single entity that builds, owns, and operates the
broadband network, and it is the most common model in the United States. This broadband network, and it is the most common model in the United States. This
model is impacted by customer density, which is low in rural America. The cost model is impacted by customer density, which is low in rural America. The cost
to the entity to provide service is often high for each customer when customers to the entity to provide service is often high for each customer when customers
are spread out geographically. For some, a potential advantage of this model is are spread out geographically. For some, a potential advantage of this model is
that a single entity can make all of the profit from operating the business. A that a single entity can make all of the profit from operating the business. A
disadvantage could be that a single entity has to take on all of the risk if the disadvantage could be that a single entity has to take on all of the risk if the
business does to succeed. business does to succeed.
 The  The open-access model involves an entity—typically a government entity, such involves an entity—typically a government entity, such
as a municipality—building and owning the broadband network. The network as a municipality—building and owning the broadband network. The network
owner provides network access to multiple ISPs, which then provide retail owner provides network access to multiple ISPs, which then provide retail
broadband service to customers. An advantage of this model, some say, is that broadband service to customers. An advantage of this model, some say, is that
customers receive a variety of choices for their broadband service. A potential customers receive a variety of choices for their broadband service. A potential
disadvantage is that most municipalities operating open-access networks do not disadvantage is that most municipalities operating open-access networks do not
generate sufficient revenue to pay for the cost of building the network. generate sufficient revenue to pay for the cost of building the network.
 The  The public-private partnership model involves a municipality and a commercial involves a municipality and a commercial
ISP working together to deploy broadband to an area. An advantage of this ISP working together to deploy broadband to an area. An advantage of this

5 See CRS Report R46613, 5 See CRS Report R46613, The Digital Divide: What Is It, Where Is It, and Federal Assistance Programs, by Colby , by Colby
Leigh Rachfal; and Pew Research Center, “Internet/Broadband Fact Sheet,” accessed October 28, 2021, at Leigh Rachfal; and Pew Research Center, “Internet/Broadband Fact Sheet,” accessed October 28, 2021, at
https://www.pewresearch.org/internet/fact-sheet/internet-broadband/. https://www.pewresearch.org/internet/fact-sheet/internet-broadband/.
6 CRS Report R46108, 6 CRS Report R46108, Demand for Broadband in Rural Areas: Implications for Universal Access, by Brian E. , by Brian E.
Humphreys. Humphreys.
7 Alexander Marre and Alexander Nikolov, “Rural Spotlight: Bringing Broadband to Maryland’s Eastern Shore,” 7 Alexander Marre and Alexander Nikolov, “Rural Spotlight: Bringing Broadband to Maryland’s Eastern Shore,”
Federal Reserve Bank of Richmond, Rural Spotlight Series, July 15, 2021. , Rural Spotlight Series, July 15, 2021.
8 CRS Report R46613, 8 CRS Report R46613, The Digital Divide: What Is It, Where Is It, and Federal Assistance Programs, by Colby Leigh , by Colby Leigh
Rachfal. Rachfal.
9 CRS Report R46108, 9 CRS Report R46108, Demand for Broadband in Rural Areas: Implications for Universal Access, by Brian E. , by Brian E.
Humphreys. Humphreys.
10 Doug Dawson, “The Rural Broadband Industry,” 10 Doug Dawson, “The Rural Broadband Industry,” The Pew Charitable Trusts, commissioned White Paper, September , commissioned White Paper, September
1, 2021. 1, 2021.
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model, according to some, is that the private and public entities can work model, according to some, is that the private and public entities can work
together to raise the funds needed to build the network. A possible disadvantage together to raise the funds needed to build the network. A possible disadvantage
is that public and private entities may have different goals for the broadband is that public and private entities may have different goals for the broadband
project. Commercial ISPs likely would be focused on generating a profit, while project. Commercial ISPs likely would be focused on generating a profit, while
government entities may be focused on providing value to their community and government entities may be focused on providing value to their community and
offering low broadband service rates. offering low broadband service rates.
Low Demand for Service
The National Telecommunications and Information Administration (NTIA) has studied internet The National Telecommunications and Information Administration (NTIA) has studied internet
adoption in U.S. homes in both rural and urban areas.11 NTIA calculated how many people had in U.S. homes in both rural and urban areas.11 NTIA calculated how many people had
access to broadband service (231 million people) and the portion of those people who elected to access to broadband service (231 million people) and the portion of those people who elected to
subscribe to broadband service. NTIA found about 76% of people in rural areas use the internet in subscribe to broadband service. NTIA found about 76% of people in rural areas use the internet in
their homes, compared with 87% of people in urban areas. Research has identified three factors their homes, compared with 87% of people in urban areas. Research has identified three factors
that may contribute to broadband adoption: age, educational attainment, and income level.12 The that may contribute to broadband adoption: age, educational attainment, and income level.12 The
USDA Economic Research Service (ERS) found that rural residents tend to be older, have lower USDA Economic Research Service (ERS) found that rural residents tend to be older, have lower
educational attainment, and lower incomes compared with urban residents—all characteristics educational attainment, and lower incomes compared with urban residents—all characteristics
that could contribute to lower levels of broadband adoption.13 Studies have shown that broadband that could contribute to lower levels of broadband adoption.13 Studies have shown that broadband
usage increases for rural residents when they identify essential tasks that can be completed using usage increases for rural residents when they identify essential tasks that can be completed using
the internet.14 Essential tasks include working remotely and helping children access e-learning.15 the internet.14 Essential tasks include working remotely and helping children access e-learning.15
In those cases, rural residents reportedly will expend to access the internet, including driving to In those cases, rural residents reportedly will expend to access the internet, including driving to
the parking lots of restaurants, libraries, and schools to access free Wi-Fi. the parking lots of restaurants, libraries, and schools to access free Wi-Fi.
ReConnect Program
Congress provided authority to USDA to establish the ReConnect Program to address the digital Congress provided authority to USDA to establish the ReConnect Program to address the digital
divide in the United States and facilitate broadband deployment in rural areas. The program divide in the United States and facilitate broadband deployment in rural areas. The program
provides funding for ISPs and other entities to help offset the cost of building broadband provides funding for ISPs and other entities to help offset the cost of building broadband
infrastructure in rural areas. This section provides an overview of the program authority, funding, infrastructure in rural areas. This section provides an overview of the program authority, funding,
and awards. It also compares and contrasts the ReConnect Program with other USDA broadband and awards. It also compares and contrasts the ReConnect Program with other USDA broadband
programs. programs.
Program Authority
On March 23, 2018, Congress provided the underlying authority for the Secretary of Agriculture On March 23, 2018, Congress provided the underlying authority for the Secretary of Agriculture
to establish a new broadband loan and grant pilot program through the passage of the Agriculture, to establish a new broadband loan and grant pilot program through the passage of the Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act,
2018 (P.L. 115-141, Division A, Title VII, §779). Congress directed that the pilot program be 2018 (P.L. 115-141, Division A, Title VII, §779). Congress directed that the pilot program be

11 National Telecommunications and Information Administration (NTIA), “Digital National Data Explorer,” last 11 National Telecommunications and Information Administration (NTIA), “Digital National Data Explorer,” last
modified June 10, 2020, at https://www.ntia.gov/data/digital-nation-data-explorer. modified June 10, 2020, at https://www.ntia.gov/data/digital-nation-data-explorer.
12 Pew Research Center, “Internet/Broadband Fact Sheet.” 12 Pew Research Center, “Internet/Broadband Fact Sheet.”
13 John Cromartie et al., 13 John Cromartie et al., Rural America at a Glance: 2020 Edition, U.S. Department of Agriculture (USDA) Economic , U.S. Department of Agriculture (USDA) Economic
Research Service (ERS), Economic Information Bulletin (EIB) 221, December 17, 2020; and John Pender et al., Research Service (ERS), Economic Information Bulletin (EIB) 221, December 17, 2020; and John Pender et al., Rural
America at a Glance: 2019 Edition,, USDA ERS, EIB-212, November 13, 2019. USDA ERS, EIB-212, November 13, 2019.
14 CRS Report R46108, 14 CRS Report R46108, Demand for Broadband in Rural Areas: Implications for Universal Access, by Brian E. , by Brian E.
Humphreys. Humphreys.
15 Cecilia Kang, “Parking Lots Have Become a Digital Lifeline,” 15 Cecilia Kang, “Parking Lots Have Become a Digital Lifeline,” New York Times, May 5, 2020; Paul Gattis, “Why Are , May 5, 2020; Paul Gattis, “Why Are
Kids Doing Their Homework in McDonald’s Parking Lots?,” Kids Doing Their Homework in McDonald’s Parking Lots?,” Huntsville Real-Time News, January 29, 2019; and Lucas , January 29, 2019; and Lucas
Smolcic Larson, “Life In The ‘Dead Zone’: How Thousands In Washtenaw County Get by Without Broadband,” Smolcic Larson, “Life In The ‘Dead Zone’: How Thousands In Washtenaw County Get by Without Broadband,”
Michigan Live: Ann Arbor, October 18, 2021. , October 18, 2021.
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created through the authority provided to USDA under the Rural Electrification Act of 1936 (7 created through the authority provided to USDA under the Rural Electrification Act of 1936 (7
U.S.C. §§901 et seq.), which authorizes the agency to finance broadband deployment in rural U.S.C. §§901 et seq.), which authorizes the agency to finance broadband deployment in rural
areas. The pilot program became known as the Rural eConnectivity Pilot Program and eventually areas. The pilot program became known as the Rural eConnectivity Pilot Program and eventually
the ReConnect Program. Congress has reauthorized the broadband loan and grant pilot program the ReConnect Program. Congress has reauthorized the broadband loan and grant pilot program
annually through the annually through the
 Agriculture, Rural Development, Food and Drug Administration, and Related  Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2019 (P.L. 116-6, Title VII, §762); Agencies Appropriations Act, 2019 (P.L. 116-6, Title VII, §762);
 Agriculture, Rural Development, Food and Drug Administration, and Related  Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2020 (P.L. 116-94, Title VII, §787); and Agencies Appropriations Act, 2020 (P.L. 116-94, Title VII, §787); and
 Agriculture, Rural Development, Food and Drug Administration, and Related  Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2021 (P.L. 116-260, Title VII, §775). Agencies Appropriations Act, 2021 (P.L. 116-260, Title VII, §775).
On February 26, 2021, RUS issued the final rule for the ReConnect Program in the On February 26, 2021, RUS issued the final rule for the ReConnect Program in the Federal
Register, which established the program’s regulations.16 RUS published those final regulations as , which established the program’s regulations.16 RUS published those final regulations as
7 C.F.R. §1740. 7 C.F.R. §1740.
Funding
Congress has appropriated funding for the ReConnect Program each year from FY2018 to Congress has appropriated funding for the ReConnect Program each year from FY2018 to
FY2022. Funding amounts provided below represent budget authority, including loan subsidies FY2022. Funding amounts provided below represent budget authority, including loan subsidies
that support larger loan levels. (Seethat support larger loan levels. (See Table 1 for additional information on program funding.) for additional information on program funding.)
  FY2018. Congress appropriated $600 million to establish the ReConnect Congress appropriated $600 million to establish the ReConnect
Program through the Consolidated Appropriations Act, 2018 (P.L. 115-141, Program through the Consolidated Appropriations Act, 2018 (P.L. 115-141,
Division A, §779). Division A, §779).
  FY2019. Congress appropriated $550 million for the ReConnect Program Congress appropriated $550 million for the ReConnect Program
through the Consolidated Appropriations Act, 2019 (P.L. 116-6, Division B, through the Consolidated Appropriations Act, 2019 (P.L. 116-6, Division B,
§762). Funding included $125 million in discretionary funding and $425 million §762). Funding included $125 million in discretionary funding and $425 million
in funding accrued through the Cushion of Credit account.17 in funding accrued through the Cushion of Credit account.17
  FY2020. Congress appropriated a total of $655 million for the ReConnect Congress appropriated a total of $655 million for the ReConnect
Program. Congress appropriated $555 million through the Further Consolidated Program. Congress appropriated $555 million through the Further Consolidated
Appropriations Act, 2020 (P.L. 116-94, Division B, §787). Funding included Appropriations Act, 2020 (P.L. 116-94, Division B, §787). Funding included
$300 million in discretionary funding and $255 million in funding accrued $300 million in discretionary funding and $255 million in funding accrued
through the Cushion of Credit account. In addition, Congress appropriated $100 through the Cushion of Credit account. In addition, Congress appropriated $100
million for the ReConnect Program in the Coronavirus Aid, Relief, and million for the ReConnect Program in the Coronavirus Aid, Relief, and
Economic Security Act (CARES Act; P.L. 116-136, Division B, Title I, §11004). Economic Security Act (CARES Act; P.L. 116-136, Division B, Title I, §11004).
  FY2021. Congress appropriated $635 million for the ReConnect Program Congress appropriated $635 million for the ReConnect Program
through the Consolidated Appropriations Act, 2021 (P.L. 116-260, Division A, through the Consolidated Appropriations Act, 2021 (P.L. 116-260, Division A,
§775). Funding included $531 million in discretionary funding and $104 million §775). Funding included $531 million in discretionary funding and $104 million
in funding accrued through the Cushion of Credit account. in funding accrued through the Cushion of Credit account.
 FY2022. Congress appropriated approximately $2.363 billion for the ReConnect Program. Congress appropriated $1.926 billion for the ReConnect Program through the Infrastructure Investment and Jobs Act (P.L. 117-58, Division J, Title
16 USDA Rural Utilities Service (RUS), “Rural eConnectivity Program: Final rule, request for comments,” 86 16 USDA Rural Utilities Service (RUS), “Rural eConnectivity Program: Final rule, request for comments,” 86 Federal
Register 11603, February 26, 2021. 11603, February 26, 2021.
17 The Cushion of Credit account contains funds USDA RUS accrues when the Federal Financing Bank purchases RUS 17 The Cushion of Credit account contains funds USDA RUS accrues when the Federal Financing Bank purchases RUS
loans. RUS uses the funds from these purchases to fund economic development projects. loans. RUS uses the funds from these purchases to fund economic development projects.
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 FY2022.I).18 In addition, Congress appropriated $ Congress appropriated $~~1.926 billion~~436.605 million for the ReConnect Program for the ReConnect Program
~~through the Infrastructure Investment and Jobs Act (P.L. 117-58, Division J, Title~~
~~I).18~~through the Consolidated Appropriations Act, 2022 (P.L. 117-103), which includes $36.605 million for Community Project Funding.
Program Details
The ReConnect Program, administered by RUS, provides 100% loans, 100% grants, and 50% The ReConnect Program, administered by RUS, provides 100% loans, 100% grants, and 50%
loan/50% grant combinations to fund the construction and improvement of facilities and loan/50% grant combinations to fund the construction and improvement of facilities and
equipment needed to provide broadband access to rural areas.19 The program also can fund the equipment needed to provide broadband access to rural areas.19 The program also can fund the
purchase or upgrade of existing systems in rural areas that are not currently providing sufficient purchase or upgrade of existing systems in rural areas that are not currently providing sufficient
broadband access. Eligible applicants include corporations, cooperatives, public entities, U.S. broadband access. Eligible applicants include corporations, cooperatives, public entities, U.S.
territories, and Indian tribes as defined in the Indian Self-Determination and Education Act (25 territories, and Indian tribes as defined in the Indian Self-Determination and Education Act (25
U.S.C. §450b). ReConnect projects must meet the following criteria:20 U.S.C. §450b). ReConnect projects must meet the following criteria:20
  Serve rural areas. Proposed service areas must be in rural areas. The program Proposed service areas must be in rural areas. The program
regulations define regulations define rural area as any area that is not located within a city, town, or as any area that is not located within a city, town, or
incorporated area that has a population of greater than 20,000 inhabitants or an incorporated area that has a population of greater than 20,000 inhabitants or an
urbanized area contiguous and adjacent to a city or town that has a population of urbanized area contiguous and adjacent to a city or town that has a population of
greater than 50,000 inhabitants (7 C.F.R. §1740.2). greater than 50,000 inhabitants (7 C.F.R. §1740.2).
  Serve areas without sufficient broadband access. At least 90% of households At least 90% of households
within the proposed service areas must lack sufficient broadband access. The within the proposed service areas must lack sufficient broadband access. The
most recent program Funding Opportunity Announcement (FOA) defines most recent program Funding Opportunity Announcement (FOA) defines
sufficient access to broadband as any rural area in which households have fixed, as any rural area in which households have fixed,
terrestrial broadband service defined as 100 megabits per second (Mbps) terrestrial broadband service defined as 100 megabits per second (Mbps)
downstream and 20 Mbps upstream. This is often referred to as 100/20 Mbps.21 downstream and 20 Mbps upstream. This is often referred to as 100/20 Mbps.21
Applicants determine sufficient broadband service in selected locations by Applicants determine sufficient broadband service in selected locations by
referring to the FCC broadband deployment map.22 referring to the FCC broadband deployment map.22
  Offer service to all premises. The most recent FOA requires applicants to build a The most recent FOA requires applicants to build a
network capable of providing broadband service to all premises within the network capable of providing broadband service to all premises within the
proposed service areas at speeds of at least 100/100 Mbps downstream and proposed service areas at speeds of at least 100/100 Mbps downstream and
upstream (also known as “100 Mbps symmetrical speed”).23 upstream (also known as “100 Mbps symmetrical speed”).23
RUS reviews completed applications for eligibility and ranks eligible applications using a point RUS reviews completed applications for eligibility and ranks eligible applications using a point
system. RUS provides additional priority points to applications meeting certain criteria. The system. RUS provides additional priority points to applications meeting certain criteria. The
criteria used to assign priority points has varied between rounds 1, 2, and 3 of the ReConnect criteria used to assign priority points has varied between rounds 1, 2, and 3 of the ReConnect
Program and are discussed in Program and are discussed in “Awards.” ”

18 For more information, see CRS In Focus IF11918, 18 For more information, see CRS In Focus IF11918, Infrastructure Investment and Jobs Act: Funding for USDA Rural
Broadband Programs, by Lisa S. Benson and Alyssa R. Casey. , by Lisa S. Benson and Alyssa R. Casey.
19 For more information, see CRS In Focus IF11262, 19 For more information, see CRS In Focus IF11262, USDA’s ReConnect Broadband Pilot Program, by Alyssa R. , by Alyssa R.
Casey. Casey.
20 For additional information about program regulations, see 7 C.F.R. §1740. RUS also issues Funding Opportunity 20 For additional information about program regulations, see 7 C.F.R. §1740. RUS also issues Funding Opportunity
Announcements (FOAs) for the ReConnect Program that include requirements for proposed service areas, sufficient Announcements (FOAs) for the ReConnect Program that include requirements for proposed service areas, sufficient
broadband access speeds, and project buildout speeds. broadband access speeds, and project buildout speeds.
21 RUS issued the latest FOA on October 25, 2021 (86 21 RUS issued the latest FOA on October 25, 2021 (86 Federal Register 58860). 58860).
22 The FCC collects data on fixed broadband deployment from broadband providers through FCC Form 477. All 22 The FCC collects data on fixed broadband deployment from broadband providers through FCC Form 477. All
broadband providers are required to file data with the FCC twice a year through Form 477. For more information, see broadband providers are required to file data with the FCC twice a year through Form 477. For more information, see
FCC, “Fixed Broadband Deployment Data from FCC Form 477,” at https://www.fcc.gov/general/broadband-FCC, “Fixed Broadband Deployment Data from FCC Form 477,” at https://www.fcc.gov/general/broadband-
deployment-data-fcc-form-477. deployment-data-fcc-form-477.
23 RUS issued the latest FOA on October 25, 2021 ( 23 RUS issued the latest FOA on October 25, 2021 (86 Federal Register 58860). 58860).
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ReConnect 100% loans have a fixed interest rate of 2%,24 with principal and interest payments ReConnect 100% loans have a fixed interest rate of 2%,24 with principal and interest payments
deferred for three years. The maximum award for a single 100% loan is $50 million. ReConnect deferred for three years. The maximum award for a single 100% loan is $50 million. ReConnect
50% loan/50% grant combinations have an interest rate for the loan component, which is set at 50% loan/50% grant combinations have an interest rate for the loan component, which is set at
the Treasury rate for the remaining amortization period at the time that each advance of funds the Treasury rate for the remaining amortization period at the time that each advance of funds
takes place. Principal and interest payments are deferred for three years. The maximum award for takes place. Principal and interest payments are deferred for three years. The maximum award for
a loan/grant combination is $25 million for the loan portion and $25 million for the grant portion. a loan/grant combination is $25 million for the loan portion and $25 million for the grant portion.
Table 1. ReConnect Program Funding Allocation, FY2018 to FY2022
(in thousands of dollars) (in thousands of dollars)
~~Category~~
FY2018
FY2019
FY2020
FY2021
FY2022
Category Actual
Actual
Actual
~~Enacted~~Actual
Enacteda
100% Grants 100% Grants
$0 $0
$60,000 $60,000
$249,65 $249,653b
$341,730 $341,730

100% Loans 100% Loans
$558,000 $558,000
$19,000 $19,000
$34,450 $34,450
$27,470 $27,470

50% Loans 50% Loans
$0 $0
$7,250 $7,250
$16,898 $16,898
$24,630 $24,630

50% Grants 50% Grants
$0 $0
$30,000 $30,000
$75,000 $75,000
$100,000 $100,000

Administrative expenses and technical Administrative expenses and technical
$42,000 $42,000
$8,750 $8,750
$24,00 $24,000c
$37,170 $37,170

assistance assistance
Total grants, loan subsidies, and other Total grants, loan subsidies, and other
$600,000 $600,000
$125,000 $125,000
$400,001 $400,001
$531,000 $531,000
$ $~~1,926,000~~2,362,605
expenses expenses
Additional funding through Cushion of Additional funding through Cushion of
$0 $0
$425,000 $425,000
$254,999 $254,999
$104,000 $104,000
$0 $0
Credit accoun Credit accountd
Total Budget Authority
$600,000 $550,000
$655,000e $635,000
~~$1,926,000~~ $2,362,605f
Source: Compiled by CRS using the FY2021 and FY2022 USDA Congressional Budget Justification for the Rural Compiled by CRS using the FY2021 and FY2022 USDA Congressional Budget Justification for the Rural
Utilities Service (RUS). Utilities Service (RUS).
a. The FY2022 enacted funding includes $1.9 bil ion appropriated by Congress through the Infrastructure a. The FY2022 enacted funding includes $1.9 bil ion appropriated by Congress through the Infrastructure
Investment and Jobs Act (P.L. 117-58). The blank cells indicate that Congress appropriated this funding for Investment and Jobs Act (P.L. 117-58). The blank cells indicate that Congress appropriated this funding for
grants and loans and, as of this report’s date, has not specified the funding to be allocated to 100% grants, grants and loans and, as of this report’s date, has not specified the funding to be allocated to 100% grants,
100% loans, and grant/loan combinations. The act specified that up to 3% of the funding ($58 mil ion) be 100% loans, and grant/loan combinations. The act specified that up to 3% of the funding ($58 mil ion) be
spent on technical assistance and not more than 4% of the funding ($77 mil ion) be spent on administrative spent on technical assistance and not more than 4% of the funding ($77 mil ion) be spent on administrative
expenses. expenses.
b. FY2020 “100% Grants” include $153 mil ion from the Further Consolidated Appropriations Act, 2020 (P.L. b. FY2020 “100% Grants” include $153 mil ion from the Further Consolidated Appropriations Act, 2020 (P.L.
116-94) and $97 mil ion from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-94) and $97 mil ion from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L.
116-136). 116-136).
c. FY2020 “Administrative expenses and technical assistance” include $21 mil ion from the Further c. FY2020 “Administrative expenses and technical assistance” include $21 mil ion from the Further
Consolidated Appropriations Act, 2020 and $3 mil ion from the CARES Act. Consolidated Appropriations Act, 2020 and $3 mil ion from the CARES Act.
d. The Cushion of Credit account contains funds RUS accrues when the Federal Financing Bank, an entity d. The Cushion of Credit account contains funds RUS accrues when the Federal Financing Bank, an entity
within the Department of the Treasury, purchases RUS loans. RUS uses the funds from these purchases to within the Department of the Treasury, purchases RUS loans. RUS uses the funds from these purchases to
fund economic development projects. fund economic development projects.
e. FY2020 “Total Budget Authority” includes $555 mil ion appropriated by Congress through the e. FY2020 “Total Budget Authority” includes $555 mil ion appropriated by Congress through the
Consolidated Appropriations Act, 2021 (P.L. 116-260) and $100 mil ion appropriated by Congress through Consolidated Appropriations Act, 2021 (P.L. 116-260) and $100 mil ion appropriated by Congress through
the CARES Act. the CARES Act.
~~For a ReConnect 100% grant, the maximum award is $25 million. If grant applicants can show~~
~~that USDA’s ERS classifies all of the proposed service area as Frontier and Remote (FAR) Level~~f. FY2022 “Total Budget Authority” includes $1.926 bil ion Congress appropriated for the ReConnect Program through the Infrastructure Investment and Jobs Act (P.L. 117-58, Division J, Title I) and $436.605 mil ion appropriated through the Consolidated Appropriations Act, 2022 (P.L. 117-103).

24 USDA RUS, “Rural eConnectivity Program: Funding Opportunity Announcement,” 86 24 USDA RUS, “Rural eConnectivity Program: Funding Opportunity Announcement,” 86 Federal Register 58860, 58860,
October 25, 2021. October 25, 2021.
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For a ReConnect 100% grant, the maximum award is $25 million. If grant applicants can show that USDA’s ERS classifies all of the proposed service area as Frontier and Remote (FAR) Level 4, then applicants can request up to $35 million.25 Applicants are required to provide matching 4, then applicants can request up to $35 million.25 Applicants are required to provide matching
funds for 25% of the total project costs. If the grant applicants are tribal governments proposing funds for 25% of the total project costs. If the grant applicants are tribal governments proposing
to provide service on their own lands or if 75% of the grant applicant’s proposed service areas to provide service on their own lands or if 75% of the grant applicant’s proposed service areas
consists of socially vulnerable communities, then the 25% matching requirement is waived.26 consists of socially vulnerable communities, then the 25% matching requirement is waived.26
ReConnect projects are not to overbuild (i.e., build broadband networks where broadband ReConnect projects are not to overbuild (i.e., build broadband networks where broadband
networks already exist) or duplicate existing federally funded projects (P.L. 115-141, Division A, networks already exist) or duplicate existing federally funded projects (P.L. 115-141, Division A,
§779). For these reasons, RUS has instituted safeguards to ensure ReConnect projects do not §779). For these reasons, RUS has instituted safeguards to ensure ReConnect projects do not
overbuild or duplicate existing broadband networks. RUS provides public notification of overbuild or duplicate existing broadband networks. RUS provides public notification of
proposed ReConnect applications (7 C.F.R. §1740.26) and posts information from the proposed ReConnect applications (7 C.F.R. §1740.26) and posts information from the
applications on a public website for 45 days. Existing broadband service providers can review the applications on a public website for 45 days. Existing broadband service providers can review the
applications and notify RUS if one or more of the projects would build broadband networks applications and notify RUS if one or more of the projects would build broadband networks
where the service providers have existing networks or if the projects propose to provide where the service providers have existing networks or if the projects propose to provide
broadband access where existing providers are providing sufficient broadband access. In addition, broadband access where existing providers are providing sufficient broadband access. In addition,
RUS shares ReConnect applications with the FCC and NTIA to ensure that proposed projects do RUS shares ReConnect applications with the FCC and NTIA to ensure that proposed projects do
not duplicate existing projects funded through those agencies.27 not duplicate existing projects funded through those agencies.27
Awards
~~RUS~~As of December 2022, USDA has awarded approximately $ has awarded approximately $~~1.5~~3.123 billion in ReConnect Program funding billion in ReConnect Program funding ~~for 181 projects~~
~~through two~~through three rounds of funding.28 USDA awarded approximately $656 million in the first round, $850 million in the second round, and $1.617 billion in the third round ~~rounds of funding.28 USDA has stated that these projects are to provide broadband~~
~~access to over 297,000 households in rural areas. RUS issued the funding announcement for the~~
~~third funding cycle in October 2021.29 RUS has made $1.15 billion available to fund applications~~
~~during this cycle~~. The following section provides information about the three rounds of awards . The following section provides information about the three rounds of awards
for the ReConnect Program. for the ReConnect Program.
Round 1
On December 14, 2018, RUS issued the FOA for the first round of funding for the ReConnect On December 14, 2018, RUS issued the FOA for the first round of funding for the ReConnect
Program.Program.3029 (Se (See Table 2 for information about the criteria used in the ReConnect funding for information about the criteria used in the ReConnect funding
rounds.) RUS accepted applications from December 2018 to July 2019. RUS received 146 rounds.) RUS accepted applications from December 2018 to July 2019. RUS received 146
applications for projects totaling $1.4 billion in loans, grants, and loan/grant combinations. RUS applications for projects totaling $1.4 billion in loans, grants, and loan/grant combinations. RUS
announced 76 awards affecting 33 states, which totaled $656 million, and awarded the funds as follows:
25 USDA ERS created a coding system to describe areas with low populations that are geographically remote. The 25 USDA ERS created a coding system to describe areas with low populations that are geographically remote. The
coding system is known as FAR, which stands for frontier and remote area codes. For more information, see USDA coding system is known as FAR, which stands for frontier and remote area codes. For more information, see USDA
ERS, “Frontier and Remote Area Codes,” at https://www.ers.usda.gov/data-products/frontier-and-remote-area-codes/. ERS, “Frontier and Remote Area Codes,” at https://www.ers.usda.gov/data-products/frontier-and-remote-area-codes/.
26 The October 25, 2021, FOA defines a 26 The October 25, 2021, FOA defines a socially vulnerable community as “a community or area identified in the as “a community or area identified in the
Center for Disease Control’s Social Vulnerability Index with a score of 7.5 or higher” (86 Center for Disease Control’s Social Vulnerability Index with a score of 7.5 or higher” (86 Federal Register 58860). 58860).
The Social Vulnerability Index estimates the degree to which a given community may be unable to prevent human The Social Vulnerability Index estimates the degree to which a given community may be unable to prevent human
suffering and financial loss in the event of a disaster. The index compiles data on socioeconomic and demographic suffering and financial loss in the event of a disaster. The index compiles data on socioeconomic and demographic
factors as well as housing and transportation. factors as well as housing and transportation.
27 USDA, “USDA, FCC, and NTIA Announce Interagency Agreement to Coordinate Broadband Funding 27 USDA, “USDA, FCC, and NTIA Announce Interagency Agreement to Coordinate Broadband Funding
Deployment,” press release, June 25, 2021, at https://www.usda.gov/media/press-releases/2021/06/25/usda-fcc-and-Deployment,” press release, June 25, 2021, at https://www.usda.gov/media/press-releases/2021/06/25/usda-fcc-and-
ntia-announce-interagency-agreement-coordinate. ntia-announce-interagency-agreement-coordinate.
28 USDA Rural Development, 28 USDA Rural Development, ~~Broadband ReConnect Program: Fiscal Year 2020 Funding Opportunity Announcement~~
~~Awards Report, July 2021 (hereinafter USDA Rural Development, Broadband ReConnect Program, July 2021).~~
~~29 USDA RUS, “Rural eConnectivity Program: Funding Opportunity Announcement,” 83 Federal Register 64315,~~
~~October 25, 2021.~~
30“ReConnect Loan and Grant Program – Program Awardees,” at https://www.usda.gov/reconnect. 29 USDA RUS, “Broadband Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of USDA RUS, “Broadband Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of
Applications,” 86 Applications,” 86 Federal Register 58860, December 14, 2018. 58860, December 14, 2018.
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~~announced 76 awards affecting 33 states, which totaled $656 million, and awarded the funds as~~
~~follows:~~
 $242 million awarded for 100% grants, $242 million awarded for 100% grants,3130
 $58 million awarded for 100% loans, and  $58 million awarded for 100% loans, and
 $356 million awarded for 50% loan/50% grant combinations.  $356 million awarded for 50% loan/50% grant combinations.
Round 2
On December 12, 2019, RUS issued the FOA for the second round of funding. On December 12, 2019, RUS issued the FOA for the second round of funding.3231 RUS instituted a RUS instituted a
number of changes to the criteria used in Round 2 number of changes to the criteria used in Round 2 (Table 2). The primary changes were to the . The primary changes were to the
definition of eligible service areas for grants and priority point criteria. In the Round 1 FOA, RUS definition of eligible service areas for grants and priority point criteria. In the Round 1 FOA, RUS
defined eligible service areas for 100% grants as areas where 100% of households in the area defined eligible service areas for 100% grants as areas where 100% of households in the area
were without sufficient broadband access.were without sufficient broadband access.3332 Eligibility for loans or loan/grant combinations Eligibility for loans or loan/grant combinations
required that at least 90% of households in an eligible service area lacked sufficient broadband required that at least 90% of households in an eligible service area lacked sufficient broadband
access. In the Round 2 FOA, RUS used the same definition of eligible service area for all types of access. In the Round 2 FOA, RUS used the same definition of eligible service area for all types of
awards—areas where 90% of households in the area were without sufficient broadband access. awards—areas where 90% of households in the area were without sufficient broadband access.
This change was less restrictive than the previous definition, thus allowing more rural areas to This change was less restrictive than the previous definition, thus allowing more rural areas to
qualify for 100% grants than in Round 1. RUS made the following changes to the priority point qualify for 100% grants than in Round 1. RUS made the following changes to the priority point
criteria: criteria:
  Farms served. In Round 2, fewer priority points were awarded for farms served. In Round 2, fewer priority points were awarded for farms served.
  Opportunity Zones. Round 2 added a criterion that awarded priority points for Round 2 added a criterion that awarded priority points for
applications with proposed service areas that included Opportunity Zones. applications with proposed service areas that included Opportunity Zones.3433
RUS received 172 applications for the Round 2 funding cycle from December 2019 to April 2020 RUS received 172 applications for the Round 2 funding cycle from December 2019 to April 2020
for projects requesting $1.6 billion in ReConnect grants, loans, and loan/grant combinations.for projects requesting $1.6 billion in ReConnect grants, loans, and loan/grant combinations.3534
In March 2020, President Donald Trump signed the Coronavirus Aid, Relief, and Economic In March 2020, President Donald Trump signed the Coronavirus Aid, Relief, and Economic
Security Act (CARES Act; P.L. 116-136) into law, which provided the ReConnect Program with Security Act (CARES Act; P.L. 116-136) into law, which provided the ReConnect Program with
an additional $100 million in funding for grants (§11004). RUS used CARES Act funding to fund an additional $100 million in funding for grants (§11004). RUS used CARES Act funding to fund
nine grant applications. nine grant applications.
In August 2021, RUS announced 105 awards affecting 37 states, which totaled $854 million, In August 2021, RUS announced 105 awards affecting 37 states, which totaled $854 million,
including the nine awards funded through the CARES Act. RUS awarded the funds as follows: including the nine awards funded through the CARES Act. RUS awarded the funds as follows:
 $546 million awarded for 100% grants,  $546 million awarded for 100% grants,3635  $13 million awarded for 100% loans, and  $295 million awarded for 50% loan/50% grant combinations.

3130 CRS compiled the total for Round 1 funding for 100% grants, 100% loans, and 50% loan/50% grant combinations CRS compiled the total for Round 1 funding for 100% grants, 100% loans, and 50% loan/50% grant combinations
using the list of Round 1 awardees published on USDA, “ReConnect Program FY2019 Funding Opportunity using the list of Round 1 awardees published on USDA, “ReConnect Program FY2019 Funding Opportunity
Announcement Awardees,” at https://www.usda.gov/reconnect/round-one-awardees. Announcement Awardees,” at https://www.usda.gov/reconnect/round-one-awardees.
3231 USDA RUS, “ReConnect Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of USDA RUS, “ReConnect Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of
Applications for Second Round of the ReConnect Program,” 84 Applications for Second Round of the ReConnect Program,” 84 Federal Register 67913, December 12, 2019. 67913, December 12, 2019.
3332 USDA RUS, “Broadband Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of USDA RUS, “Broadband Pilot Program: Funding Opportunity Announcement (FOA) and Solicitation of
Applications,” 86 Applications,” 86 Federal Register 58860, December 14, 2018. 58860, December 14, 2018.
3433 The Internal Revenue Service designates Opportunity Zones as economically distressed communities where new The Internal Revenue Service designates Opportunity Zones as economically distressed communities where new
investments, under certain conditions, may be eligible for preferential tax treatment. For more information, see USDA investments, under certain conditions, may be eligible for preferential tax treatment. For more information, see USDA
Rural Development, “USDA Support for Opportunity Zones,” last updated February 2020, at https://www.rd.usda.gov/Rural Development, “USDA Support for Opportunity Zones,” last updated February 2020, at https://www.rd.usda.gov/
sites/default/files/fact-sheet/RD_Factsheet_Opportunity_FS.pdf. sites/default/files/fact-sheet/RD_Factsheet_Opportunity_FS.pdf.
3534 USDA Rural Development, USDA Rural Development, Broadband ReConnect Program, July 2021. , July 2021.
3635 Distribution of Round 2 funding for grants, loans, and loan/grant combinations found in USDA Rural Development, Distribution of Round 2 funding for grants, loans, and loan/grant combinations found in USDA Rural Development,
Broadband ReConnect Program, July 2021. , July 2021.
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~~ $13 million awarded for 100% loans, and~~
~~ $295 million awarded for 50% loan/50% grant combinations.~~
Round 3
On October 25, 2021, RUS issued the FOA for the third round of funding, On October 25, 2021, RUS issued the FOA for the third round of funding,3736 instituting a number instituting a number
of changes to the eligibility and priority criteria used in Rof changes to the eligibility and priority criteria used in Round 3 (Table 2). The primary changes . The primary changes
were to the definition of eligible service areas, priority point criteria, project buildout speeds, and were to the definition of eligible service areas, priority point criteria, project buildout speeds, and
matching fund requirements. The Round 2 FOA defined eligible service areas as areas in which matching fund requirements. The Round 2 FOA defined eligible service areas as areas in which
90% of households did not have sufficient broadband access at speeds of at least 10/1 Mbps, 90% of households did not have sufficient broadband access at speeds of at least 10/1 Mbps,
whereas the Round 3 FOA defines eligible service areas as areas where 90% of households do not whereas the Round 3 FOA defines eligible service areas as areas where 90% of households do not
have sufficient broadband access at 100/20 Mbps. This change is less restrictive than the previous have sufficient broadband access at 100/20 Mbps. This change is less restrictive than the previous
definition, allowing more rural areas to qualify as eligible service areas than in Rounds 1 and 2. definition, allowing more rural areas to qualify as eligible service areas than in Rounds 1 and 2.
Round 3 prioritizes projects that propose to extend broadband to areas that lack service at speeds Round 3 prioritizes projects that propose to extend broadband to areas that lack service at speeds
of at least 25/3 Mbps. of at least 25/3 Mbps.
RUS also changed the priority point criteria for Round 3. Round 2 had nine priority criteria. RUS also changed the priority point criteria for Round 3. Round 2 had nine priority criteria.
Round 3 removes eight of the Round 2 criteria, retaining the criterion for the rurality of the Round 3 removes eight of the Round 2 criteria, retaining the criterion for the rurality of the
service area. Priority points are awarded for projects serving the least populated rural areas as service area. Priority points are awarded for projects serving the least populated rural areas as
measured by the population of the service area per square mile or if a service area is located at measured by the population of the service area per square mile or if a service area is located at
least 100 miles from a city that has a population of greater than 50,000 people. Round 3 added least 100 miles from a city that has a population of greater than 50,000 people. Round 3 added
nine additional priority point criteria, including level of existing service, economic need of the nine additional priority point criteria, including level of existing service, economic need of the
communities, and affordability of service. communities, and affordability of service.
In addition, the Round 3 FOA increases the required buildout speed for funded projects. The In addition, the Round 3 FOA increases the required buildout speed for funded projects. The
Round 2 FOA required that projects provide broadband access to the proposed areas at speeds of Round 2 FOA required that projects provide broadband access to the proposed areas at speeds of
at least 25/3 Mbps. Round 3 requires that projects provide broadband access to proposed areas at at least 25/3 Mbps. Round 3 requires that projects provide broadband access to proposed areas at
speeds of at least 100/100 Mbps (i.e., 100 Mbps symmetrical speed). The Round 3 FOA also speeds of at least 100/100 Mbps (i.e., 100 Mbps symmetrical speed). The Round 3 FOA also
removes the matching fund requirement for some areas and applicants. The Round 2 FOA removes the matching fund requirement for some areas and applicants. The Round 2 FOA
required that applicants applying for grants provide matching funds for at least 25% of the project required that applicants applying for grants provide matching funds for at least 25% of the project
costs. The Round 3 FOA allows tribal government applicants proposing to provide service on costs. The Round 3 FOA allows tribal government applicants proposing to provide service on
their own lands to waive the matching funds requirement. In addition, any projects in which the their own lands to waive the matching funds requirement. In addition, any projects in which the
proposed service area is comprised of at least 75% socially vulnerable communities may waive proposed service area is comprised of at least 75% socially vulnerable communities may waive
the matching funds requirement. The application period for Round 3 opened on November 24, the matching funds requirement. The application period for Round 3 opened on November 24,
2021, and 2021, and ~~closes~~closed February 22, 2022. USDA announced that it invested in 101 projects from 31 states and territories totaling approximately $1.617 billion. ~~February 22, 2022.~~

3736 USDA RUS, “Rural eConnectivity Program: Funding Opportunity Announcement,” 86 USDA RUS, “Rural eConnectivity Program: Funding Opportunity Announcement,” 86 Federal Register 58860, 58860,
October 25, 2021. October 25, 2021.
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Table 2. Eligibility and Prioritization Criteria in ReConnect Funding Rounds

Criteria
Round 1
Round 2
Round 3
Eligible Service Area Eligible Service Area Grants: 100% of households without 100% of households without
Grants, loans, loan/grant combinations: 90% of 90% of
Grants, loans, loan/grant combinations: 90% of 90% of
sufficient broadband access at 10/1 Mbps. sufficient broadband access at 10/1 Mbps.
households without sufficient broadband households without sufficient broadband
households without sufficient broadband access households without sufficient broadband access
Loans, loan/grant combinations: 90% of 90% of
access at 10/1 Mbps. access at 10/1 Mbps.
at 100/20 Mbps. at 100/20 Mbps.
households without sufficient broadband households without sufficient broadband
access at 10/1 Mbps. access at 10/1 Mbps.
Priority Points Priority Points
 
Rurality of service area Rurality of service area
 
Rurality of service area Rurality of service area
 
Rurality of service area Rurality of service area
 
Farms served (1 point per farm) Farms served (1 point per farm)
 
Farms served (1 point per 10 farms) Farms served (1 point per 10 farms)
 
Level of existing service Level of existing service
 
Performance of offered service Performance of offered service
 
Performance of offered service Performance of offered service
 
Economic need of community Economic need of community
 
Businesses served Businesses served
 
Businesses served Businesses served
 
Affordability Affordability
 
Healthcare centers served Healthcare centers served
 
Healthcare centers served Healthcare centers served
 
Labor standards Labor standards
 
Educational facilities served Educational facilities served
 
Educational facilities served Educational facilities served
 
Tribal lands Tribal lands
 
Community facilities served Community facilities served
 
Community facilities served Community facilities served
 
Local government, nonprofit, cooperatives Local government, nonprofit, cooperatives
 
Tribal lands served Tribal lands served
 
Opportunity Zones ser Opportunity Zones serveda
 
Socially vulnerable communities Socially vulnerable communities
 
State broadband activity State broadband activity
 
State or Tribal broadband activity State or Tribal broadband activity
 
Net neutrality Net neutrality

 
Wholesale broadband services Wholesale broadband services
Buildout Speed Buildout Speed
At least 25/3 Mbps. At least 25/3 Mbps.
At least 25/3 Mbps. At least 25/3 Mbps.
At least 100/100 Mbp At least 100/100 Mbps.b
Matching Funds Matching Funds
Grants: Match required of at least 25% of Match required of at least 25% of
Grants: Match required of at least 25% of Match required of at least 25% of
Grants: Match required of at least 25% of overall Match required of at least 25% of overall
overall project cost. overall project cost.
overall project cost. overall project cost.
project cost. No match required for Tribal project cost. No match required for Tribal
government proposing to provide service on government proposing to provide service on
their own lands or proposed service areas where their own lands or proposed service areas where
75% consists of socially vulnerable communities. 75% consists of socially vulnerable communities.
Source: Compiled by CRS using USDA RUS ReConnect Program Funding Opportunity Announcements in the Compiled by CRS using USDA RUS ReConnect Program Funding Opportunity Announcements in the Federal Register (83 (83 Federal Register 64315; 84 64315; 84 Federal
Register 67913; 86 67913; 86 Federal Register 58860). 58860).
~~Note~~Notes: Broadband speed designated in downstream/upstream terms (e.g., 10/1 Mbps). Broadband speed designated in downstream/upstream terms (e.g., 10/1 Mbps).
a. The Internal Revenue Service designates Opportunity Zones as economically distressed communities where new investments, under certain conditions, may be a. The Internal Revenue Service designates Opportunity Zones as economically distressed communities where new investments, under certain conditions, may be
eligible for preferential tax treatment. eligible for preferential tax treatment.
b. Also known as “100 Mbps symmetrical speed.” b. Also known as “100 Mbps symmetrical speed.”
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Awards by State
As of As of ~~October 2021~~December 2022, RUS has awarded approximately $, RUS has awarded approximately $~~1.5~~3.127 billion for billion for ~~181~~282 projects located in projects located in 39
~~states~~43 states and U.S. territories. (Se. (See Table 3 for information on ReConnect funds awarded by state.) It is possible that for information on ReConnect funds awarded by state.) It is possible that
multistate projects affected additional states not listed imultistate projects affected additional states not listed in Table 3. States receiving the most States receiving the most
program funds are program funds are ~~Missouri~~Alaska (i.e., $ (i.e., $~~182~~305 million), Oklahoma ($ million), Oklahoma ($~~140~~260 million), and million), and ~~Virginia ($104~~
Missouri ($254 million). States with the mostmillion). States with the most funded projects are Oklahoma (24 projects), Missouri (19 projects), and New Mexico (15 projects). States with the most households served through ReConnect projects are Virginia (almost households served through ReConnect projects are Virginia (almost
49,000 households), Missouri (49,000 households), Missouri (3136,000 households), and North Carolina (,000 households), and North Carolina (~~almost 25~~31,000 ,000
households). States that have ReConnect projects that cover the most square miles of services households). States that have ReConnect projects that cover the most square miles of services
~~area are New Mexico (3,600 square miles), Alabama (2,600 square miles), and Missouri (almost~~
~~2,600~~area are Colorado (5,500 square miles), Oklahoma (almost 5,400 square miles), and New Mexico (4,800 square miles). square miles).
Table 3. ReConnect Program Awards by State, as of ~~October 2021~~December 2022
(in thousands of dollars) (in thousands of dollars)
~~State~~
Total Award
Number of
Households
Total Square Miles of
State Amount
Projects ~~Funded~~
Served
Service Area
~~1. Missouri~~
~~$181,686~~
13
~~31,043~~
~~2,552~~
~~2. Oklahoma~~
~~$139,807~~
15
~~8,703~~
~~2,123~~
~~3. Virginia~~
~~$104,450~~
6
~~48,909~~
~~2,006~~
~~4. Alabama~~
~~$99,824~~
10
~~19,166~~
~~2,656~~
~~5. Alaska~~
~~$93,678~~
7
~~3,230~~
~~352~~
~~6. Il inois~~
~~$78,757~~
6
~~14,036~~
~~736~~
~~7. Utah~~
~~$61,524~~
6
~~7,335~~
~~515~~
~~8. North Carolina~~
~~$60,931~~
6
~~24,757~~
~~1,316~~
~~9. Georgia~~
~~$47,894~~
6
~~14,150~~
~~518~~
~~10. Iowa~~
~~$46,307~~
11
~~5,198~~
~~855~~
~~11. Idaho~~
~~$43,495~~
3
~~1,064~~
~~1,685~~
~~12. New Mexico~~
~~$43,376~~
7
~~3,647~~
~~3,649~~
~~13. South Carolina~~
~~$40,129~~
5
~~17,586~~
~~536~~
~~14. Kentucky~~
~~$40,100~~
5
~~8,630~~
~~282~~
~~15. North Dakota~~
~~$38,723~~
5
~~3,873~~
~~1,755~~
~~16. Tennessee~~
~~$36,405~~
11
~~9,852~~
~~493~~
~~17. New York~~
~~$36,111~~
4
~~8,478~~
~~261~~
~~18. Michigan~~
~~$32,890~~
4
~~9,896~~
~~278~~
~~19. West Virginia~~
~~$31,984~~
4
~~11,955~~
~~312~~
~~20. Louisiana~~
~~$27,847~~
2
~~4,081~~
~~292~~
~~21. South Dakota~~
~~$27,780~~
6
~~3,482~~
~~1,217~~
~~22. Colorado~~
~~$22,927~~
3
~~3,358~~
~~602~~
~~23. Mississippi~~
~~$20,785~~
2
~~2,915~~
~~571~~
~~24. Oregon~~
~~$19,204~~
2
~~2,429~~
~~133~~
~~25. Arkansas~~
~~$19,062~~
5
~~2,548~~
~~289~~Alabama $178,289 13 28,435 4,071 Alaska $304,663 14 5,314 413 Arizona $48,029 6 8,980 2,012 Arkansas $48,695 8 3,442 669 California $65,816 4 3,855 118 Colorado $57,549 6 5,886 5,563 Georgia $84,387 7 19,381 986 Guam $29,767 1 2 98 Idaho $45,599 4 1,191 1,690 Il inois $152,556 9 17,420 1,321 Indiana $4,957 2 2,036 130 Iowa $51,866 13 5,840 886 Kansas $14,658 3 2,998 455 Kentucky $73,856 7 10,827 551 Louisiana $27,847 2 4,081 292 Maine $2,728 3 443 19 Maryland $13,108 1 3,447 122 Michigan $116,863 9 12,504 911 Minnesota $73,185 8 5,834 731 Mississippi $59,620 6 7,946 1,077 Missouri $254,388 19 36,876 3,877 Montana $51,816 5 1,761 3,019 Nebraska $8,840 2 604 500 Nevada $32,166 3 1,563 994
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~~State~~
Total Award
Number of
Households
Total Square Miles of
State Amount
Projects ~~Funded~~
Served
Service Area
~~26. Texas~~
~~$17,920~~
3
~~7,053~~
~~803~~
~~27. Arizona~~
~~$16,555~~
2
~~7,039~~
96
~~28. Montana~~
~~$14,249~~
2
~~1,052~~
~~1,394~~
~~29. Minnesota~~
~~$13,715~~
3
~~1,843~~
~~163~~
~~30. Maryland~~
~~$13,108~~
1
~~3,447~~
~~122~~
~~31. Nebraska~~
~~$8,840~~
2
~~604~~
~~500~~
~~32. Kansas~~
~~$5,272~~
1
~~1,390~~
~~218~~
~~33. Wyoming~~
~~$5,049~~
2
~~361~~
~~106~~
~~34. Nevada~~
~~$5,011~~
2
~~299~~
~~146~~
~~35. Indiana~~
~~$4,957~~
2
~~2,036~~
~~130~~
~~36. Wisconsin~~
~~$3,096~~
1
~~746~~
26
~~37. Washington~~
~~$3,073~~
2
~~307~~
2
~~38. Maine~~
~~$2,728~~
3
~~443~~
19
~~39. Pennsylvania~~
~~$750~~
1
~~237~~
7
~~Total~~
~~$1,509,997~~
~~181~~
~~297,178~~
~~29,718~~
Source: Compiled by CRS using USDA Rural Development, ~~Broadband ReConnect Program Fiscal Year FY2020~~
~~Funding Opportunity Announcement Awards Report; and USDA, “ReConnect Program FY 2019 Funding Opportunity~~
~~Announcement Awardees,” at https://www.usda.gov/reconnect/round-one-awardees.~~
New Mexico $210,882 15 8,737 4,858 New York $36,111 4 8,478 261 North Carolina $103,063 8 31,714 1,708 North Dakota $104,678 10 6,147 3,974 Oklahoma $260,424 24 17,778 5,398 Oregon $75,321 5 4,991 1,376 Palau $34,991 1 6 155 Pennsylvania $750 1 237 7 Puerto Rico $8,784 1 1 7 South Carolina $40,129 5 17,586 536 South Dakota $44,738 7 3,662 1,885 Tennessee $48,089 12 12,213 636 Texas $124,090 10 10,236 3,199 Utah $61,524 6 7,335 515 Virginia $104,450 6 48,909 2,006 Washington $11,711 3 1,944 62 West Virginia $31,984 4 11,955 312 Wisconsin $3,096 1 746 26 Wyoming $20,945 4 659 237 Total $3,127,007 282 384,000 57,664 Sources: Compiled by CRS using USDA Rural Development’s ReConnect Program Awardees for Round 1 at https://www.usda.gov/reconnect/round-one-awardees, for Round 2 at https://www.usda.gov/reconnect/round-two-awardees, and for Round 3 at https://www.usda.gov/reconnect/round-three-awardees. Notes: Projects funded through the ReConnect Program that covered multiple states were included only under Projects funded through the ReConnect Program that covered multiple states were included only under
the state listed first in the project description by USDA RUS. Projects were listed for the state listed first in the project description by USDA RUS. Projects were listed for 3943 states and U.S. territories ~~states~~. It is possible that . It is possible that
multistate projects affected additional states not listed in this table. multistate projects affected additional states not listed in this table.
Comparisons with Other USDA Broadband
Programs
In addition to the ReConnect program, RUS administers four other programs that aim to expand In addition to the ReConnect program, RUS administers four other programs that aim to expand
broadband access to rural areas. This section compares and contrasts the four USDA broadband broadband access to rural areas. This section compares and contrasts the four USDA broadband
programs with the ReConnect Program. (programs with the ReConnect Program. (See Table 4 for more information about these for more information about these
programs.) programs.)
Community Connect Program
The Community Connect Program provides grants to eligible entities to enhance broadband The Community Connect Program provides grants to eligible entities to enhance broadband
access to economically challenged rural communities where no broadband access currently exists. access to economically challenged rural communities where no broadband access currently exists.
These grants are to help rural communities achieve public benefits, such as enhanced community These grants are to help rural communities achieve public benefits, such as enhanced community
Congressional Research Service 12 USDA’s ReConnect Program: Expanding Rural Broadband development and public safety.development and public safety.3837 Applicants must provide free broadband service to all essential Applicants must provide free broadband service to all essential
community facilities (e.g., clinics, schools, fire departments) within the proposed service area for community facilities (e.g., clinics, schools, fire departments) within the proposed service area for
at least two years. at least two years.

~~38 For more information, see USDA Rural Development, “Community Connect Grants,” at https://www.rd.usda.gov/~~
~~programs-services/telecommunications-programs/community-connect-grants.~~
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~~USDA’s ReConnect Program: Expanding Rural Broadband~~

The Community Connect Program differs from the ReConnect Program in several ways. The The Community Connect Program differs from the ReConnect Program in several ways. The
Community Connect Program offers grants only. The ReConnect Program offers loans, grants, Community Connect Program offers grants only. The ReConnect Program offers loans, grants,
and loan/grant combinations. The Community Connect Program defines sufficient broadband and loan/grant combinations. The Community Connect Program defines sufficient broadband
access as 10/1 Mbps, while the ReConnect Program defines it as 100/20 Mbps. The buildout access as 10/1 Mbps, while the ReConnect Program defines it as 100/20 Mbps. The buildout
project speed is lower for the Community Connect Program (i.e., 25/3 Mbps) than for Round 3 of project speed is lower for the Community Connect Program (i.e., 25/3 Mbps) than for Round 3 of
the ReConnect Program (i.e., 100/100 Mbps). In addition, the Community Connect Program the ReConnect Program (i.e., 100/100 Mbps). In addition, the Community Connect Program
requires applicants to provide free service to essential community facilities in the proposed requires applicants to provide free service to essential community facilities in the proposed
service areas for two years. ReConnect does not include this requirement. service areas for two years. ReConnect does not include this requirement.
Distance Learning and Telemedicine Program
The Distance Learning and Telemedicine (DLT) Program provides grants to help rural The Distance Learning and Telemedicine (DLT) Program provides grants to help rural
communities acquire technology and training to connect medical professionals and educational communities acquire technology and training to connect medical professionals and educational
institutions with patients, teachers, and students.institutions with patients, teachers, and students.3938 Congress authorized the DLT Program to issue Congress authorized the DLT Program to issue
grants, loans, and loan/grant combinations. From FY2019 to FY2021, Congress appropriated grants, loans, and loan/grant combinations. From FY2019 to FY2021, Congress appropriated
funding only for grants. A portion of DLT Program funds is allocated to the DLT Delta Health funding only for grants. A portion of DLT Program funds is allocated to the DLT Delta Health
Care Services Program, which focuses on connecting rural communities in the Delta region to Care Services Program, which focuses on connecting rural communities in the Delta region to
medical services.medical services.4039
The DLT Program and the ReConnect Program have different missions. The DLT Program The DLT Program and the ReConnect Program have different missions. The DLT Program
focuses on expanding rural telehealth by funding acquisition of distance learning or telehealth focuses on expanding rural telehealth by funding acquisition of distance learning or telehealth
equipment or software but not the construction of broadband infrastructure. The ReConnect equipment or software but not the construction of broadband infrastructure. The ReConnect
Program focuses on deploying broadband to rural areas by building or enhancing broadband Program focuses on deploying broadband to rural areas by building or enhancing broadband
infrastructure. infrastructure.
Rural Broadband Program
The Rural Broadband Program offers loans to help construct, improve, or acquire facilities and The Rural Broadband Program offers loans to help construct, improve, or acquire facilities and
equipment needed to provide broadband access to rural areas.equipment needed to provide broadband access to rural areas.4140 Congress authorized the Rural Congress authorized the Rural
Broadband Program to issue grants, direct loans, and loan guarantees in the 2018 farm bill (P.L. Broadband Program to issue grants, direct loans, and loan guarantees in the 2018 farm bill (P.L.
115-334), although Congress has not provided funding for grants to date. From FY2019 to 115-334), although Congress has not provided funding for grants to date. From FY2019 to
FY2021, Congress appropriated funding only for direct loans. FY2021, Congress appropriated funding only for direct loans.
The Rural Broadband Program differs from the ReConnect Program in the definition used for The Rural Broadband Program differs from the ReConnect Program in the definition used for
sufficient broadband access. The Rural Broadband Program defines sufficient broadband access sufficient broadband access. The Rural Broadband Program defines sufficient broadband access
as 25/3 Mbps, whereas the ReConnect Program defines it as 100/20 Mbps. The minimum as 25/3 Mbps, whereas the ReConnect Program defines it as 100/20 Mbps. The minimum
~~buildout project speed is also lower for the Rural Broadband Program at 25/3 Mbps compared~~
~~with 100/100 Mbps for Round 3 of the ReConnect Program.~~

39 37 For more information, see USDA Rural Development, “Community Connect Grants,” at https://www.rd.usda.gov/programs-services/telecommunications-programs/community-connect-grants. 38 For more information, see USDA Rural Development, “Distance Learning & Telemedicine Grants,” at For more information, see USDA Rural Development, “Distance Learning & Telemedicine Grants,” at
https://www.rd.usda.gov/programs-services/telecommunications-programs/distance-learning-telemedicine-grants. https://www.rd.usda.gov/programs-services/telecommunications-programs/distance-learning-telemedicine-grants.
4039 The Delta region includes parts of Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and The Delta region includes parts of Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and
Tennessee. For more information, see Delta Regional Authority, “DRA States,” at https://dra.gov/about-dra/dra-states/. Tennessee. For more information, see Delta Regional Authority, “DRA States,” at https://dra.gov/about-dra/dra-states/.
4140 For more information, see USDA Rural Development, “Rural Broadband Access Loan and Loan Guarantee,” at For more information, see USDA Rural Development, “Rural Broadband Access Loan and Loan Guarantee,” at
https://www.rd.usda.gov/programs-services/telecommunications-programs/rural-broadband-access-loan-and-loan-https://www.rd.usda.gov/programs-services/telecommunications-programs/rural-broadband-access-loan-and-loan-
guarantee. guarantee.
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USDA’s ReConnect Program: Expanding Rural Broadband

buildout project speed is also lower for the Rural Broadband Program at 25/3 Mbps compared with 100/100 Mbps for Round 3 of the ReConnect Program. Telecommunications Infrastructure Program
The Telecommunications Infrastructure Program offers loans and loan guarantees to finance the The Telecommunications Infrastructure Program offers loans and loan guarantees to finance the
construction, improvement, and expansion of telephone services and broadband infrastructure in construction, improvement, and expansion of telephone services and broadband infrastructure in
rural areas with populations of fewer than 5,000 people.rural areas with populations of fewer than 5,000 people.4241
The Telecommunications Infrastructure Program differs from the ReConnect Program in that it The Telecommunications Infrastructure Program differs from the ReConnect Program in that it
offers loan guarantees and serves rural areas of fewer than 5,000 people, whereas the ReConnect offers loan guarantees and serves rural areas of fewer than 5,000 people, whereas the ReConnect
Program offers grants, loans, and loan guarantees and serves rural areas of 20,000 or fewer Program offers grants, loans, and loan guarantees and serves rural areas of 20,000 or fewer
people. In addition, the Telecommunications Infrastructure Program’s mission focuses on people. In addition, the Telecommunications Infrastructure Program’s mission focuses on
expanding telephone service and broadband access, while ReConnect’s mission focuses expanding telephone service and broadband access, while ReConnect’s mission focuses
exclusively on expanding broadband access.exclusively on expanding broadband access.

4241 For more information, see USDA Rural Development, “Telecommunications Infrastructure Loans & Loan For more information, see USDA Rural Development, “Telecommunications Infrastructure Loans & Loan
Guarantees,” at https://www.rd.usda.gov/programs-services/telecommunications-programs/telecommunications-Guarantees,” at https://www.rd.usda.gov/programs-services/telecommunications-programs/telecommunications-
infrastructure-loans-loan-guarantees. infrastructure-loans-loan-guarantees.
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link to page 18 link to page 18 link to page 18 link to page 18 link to page 18 link to page 18 ~~link to page 18~~
Table 4. Comparison of Criteria Among USDA Broadband Programs
~~Program~~
~~Types of~~
~~Eligible Rural Area~~
~~Eligible Service Area~~
~~Minimum~~
~~FY2021~~
~~Awards~~Types of Minimum FY2022 Program Awards Eligible Rural Area Eligible Service Area
Buildout Speed
Funding
Community Connect Community Connect
Grants Grants
Towns, cities, or incorporated areas Towns, cities, or incorporated areas
100% of households lack sufficient 100% of households lack sufficient
25/3 Mbps 25/3 Mbps
$35 mil ion $35 mil ion
Program Program
with populations of 20,000 or fewer, with populations of 20,000 or fewer,
broadband access at 10/1 Mbps. broadband access at 10/1 Mbps.
not adjacent to a city/town with more not adjacent to a city/town with more
than 50,000 residents. than 50,000 residents.
Distance Learning and Distance Learning and
Grants Grants
Towns, cities, or incorporated areas Towns, cities, or incorporated areas
N/A N/A
N/A N/A
$ $~~60 mil io~~na62.5 mil ion
Telemedicine (DLT) Telemedicine (DLT)
with populations of 20,000 or fewer. with populations of 20,000 or fewer.
Program Program
ReConnect Program ReConnect Program
Loans, Grants, Loans, Grants,
Towns, cities, or incorporated areas Towns, cities, or incorporated areas
90% of households lack sufficient 90% of households lack sufficient
100/100 Mbps 100/100 Mbps
$ $~~635~~436.6 mil ion mil ion
Loan/Grant Loan/Grant
with populations of 20,000 or fewer, with populations of 20,000 or fewer,
broadband access at 100/20 Mbps. broadband access at 100/20 Mbps.
Combination Combination
not adjacent to a city/town with more not adjacent to a city/town with more
than 50,000 residents. than 50,000 residents.
Rural Broadband Rural Broadband
Loans, Loan Loans, Loan
Direct loans: Towns or cities with Direct loans: Towns or cities with
50% of households lack access to 50% of households lack access to
Baseline speed is Baseline speed is
$ $~~11.9~~13.396 mil io mil ioncnb
Program Program
Guaran Guaran~~teesb~~teesa
populations of 20,000 or fewer. populations of 20,000 or fewer.
broadband service at speeds of 25/3 broadband service at speeds of 25/3
25/3 Mbps. Speed 25/3 Mbps. Speed
Loan guarantees: Towns or cities with Loan guarantees: Towns or cities with
Mbps. Mbps.
increases as increases as
populations of 50,000 or fewer. populations of 50,000 or fewer.
award term award term
increases. increases.
Telecommunications Telecommunications
Loans, Loan Loans, Loan
Towns or incorporated areas with Towns or incorporated areas with
Areas without telephone or Areas without telephone or
25/3 Mbps 25/3 Mbps
$690 mil io $690 mil iondnc
Infrastructure Program Infrastructure Program
Guarantees Guarantees
populations of 5,000 or fewer. populations of 5,000 or fewer.
broadband or areas where the broadband or areas where the
applicant is the recognized applicant is the recognized
telecommunications provider.telecommunications provider.
~~Source~~ Sources: Compiled by CRS using the Compiled by CRS using the Joint Explanatory Statement for Division A of the Consolidated Appropriations Act, 2022 (P.L. 117-103), and the most recent Funding Opportunity Announcements for the programs. Also, see USDA Rural Development, “Telecommunications most recent Funding Opportunity Announcements for the programs. Also, see USDA Rural Development, “Telecommunications
Infrastructure Loans & Loan Guarantees,” at https://www.rd.usda.gov/programs-services/telecommunications-programs/telecommunications-infrastructure-loans-loan-Infrastructure Loans & Loan Guarantees,” at https://www.rd.usda.gov/programs-services/telecommunications-programs/telecommunications-infrastructure-loans-loan-
~~guarantees.~~
~~a. The FY2021 funding includes $3 mil ion for the DLT Delta Healthcare Services Program.~~
b. guarantees. a. Congress has provided authority for the Rural Broadband Program to issue grants, loans, and loan guarantees. Congress has appropriated funding only for loans and Congress has provided authority for the Rural Broadband Program to issue grants, loans, and loan guarantees. Congress has appropriated funding only for loans and
loan guarantees to date. loan guarantees to date.
c b. Congress appropriated $. Congress appropriated $~~11.869~~13.396 mil ion in loan authority for the program, supported by a $2 mil ion in loan authority for the program, supported by a $2.272 mil ion loan subsidy. mil ion loan subsidy.
dc. Congress appropriated $690 mil ion in loan authority for the program, supported by a $2.. Congress appropriated $690 mil ion in loan authority for the program, supported by a $2.307 mil ion loan subsidy. mil ion loan subsidy.
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Issues for Congress
Congress and some stakeholders have identified a number of issues that may affect the Congress and some stakeholders have identified a number of issues that may affect the
ReConnect Program’s effectiveness, including funding levels, service to rural areas, and the ReConnect Program’s effectiveness, including funding levels, service to rural areas, and the
potential for duplication. The following section summarizes these issues. potential for duplication. The following section summarizes these issues.
Funding Levels
Some stakeholders have argued that because the demand for ReConnect Program funds exceeds Some stakeholders have argued that because the demand for ReConnect Program funds exceeds
available funding, Congress might consider increasing program funding.available funding, Congress might consider increasing program funding.4342 Congress appropriated Congress appropriated
$100 million for the ReConnect Program through the CARES Act (P.L. 116-136). USDA $100 million for the ReConnect Program through the CARES Act (P.L. 116-136). USDA
reviewed applications submitted to the ReConnect Program and funded nine of those applications reviewed applications submitted to the ReConnect Program and funded nine of those applications
using CARES Act funding. The case could be made that, similar to the CARES Act funding, if using CARES Act funding. The case could be made that, similar to the CARES Act funding, if
Congress were to provide additional funding for the ReConnect Program, then additional Congress were to provide additional funding for the ReConnect Program, then additional
qualified applications could be identified to be funded.qualified applications could be identified to be funded.
Conversely, some Members of Congress requested an audit of the ReConnect Program and cited Conversely, some Members of Congress requested an audit of the ReConnect Program and cited
that “government watchdogs have long raised concerns with USDA’s management of its that “government watchdogs have long raised concerns with USDA’s management of its
broadband infrastructure support programs.”broadband infrastructure support programs.”4443 These Members expressed concern that without These Members expressed concern that without
proper oversight of the program, there was the potential for overbuilding broadband networks. proper oversight of the program, there was the potential for overbuilding broadband networks.
Serving Rural Areas
In 2020, certain Members of the Senate and House sent a letter to the Secretary of Agriculture In 2020, certain Members of the Senate and House sent a letter to the Secretary of Agriculture
stating that priority points offered on ReConnect applications favored rural areas with higher stating that priority points offered on ReConnect applications favored rural areas with higher
populations.populations.4544 In Round 1 and Round 2, RUS provided priority points for applications that would In Round 1 and Round 2, RUS provided priority points for applications that would
serve areas that included health care centers, educational facilities, and community facilities serve areas that included health care centers, educational facilities, and community facilities
(Table 2). Some Members reasoned that these types of facilities were less likely to be located in . Some Members reasoned that these types of facilities were less likely to be located in
less populated rural areas, concluding that applications serving rural areas with lower populations less populated rural areas, concluding that applications serving rural areas with lower populations
would be less competitive than applications serving rural areas with higher populations.would be less competitive than applications serving rural areas with higher populations.4645

4342 Ben Nuelle, “Reaping Rural Broadband Rewards of USDA’s ReConnect Program,” Ben Nuelle, “Reaping Rural Broadband Rewards of USDA’s ReConnect Program,” Agri-Pulse, December 2, 2020; December 2, 2020;
and Katie Kienbaum, “ReConnect Funding Applicants: More Than Half Community Broadband Networks,” and Katie Kienbaum, “ReConnect Funding Applicants: More Than Half Community Broadband Networks,” Institute
for Local Self-Reliance,, September 4, 2019. September 4, 2019.
4443 Letter from House Committee on Energy and Commerce ranking member Rep. Greg Walden, Rep. Robert E. Latta, Letter from House Committee on Energy and Commerce ranking member Rep. Greg Walden, Rep. Robert E. Latta,
Rep. Pete Olson, Rep. Adam Kinzinger, Rep. Gus M. Bilirakis, Rep. Bill Johnson, Rep. Billy Long, Rep. Bill Flores, Rep. Pete Olson, Rep. Adam Kinzinger, Rep. Gus M. Bilirakis, Rep. Bill Johnson, Rep. Billy Long, Rep. Bill Flores,
Rep. Susan W. Brooks, Rep. Tim Walberg, and Rep. Greg Gianforte to Comptroller General Gene Dodaro of the U.S. Rep. Susan W. Brooks, Rep. Tim Walberg, and Rep. Greg Gianforte to Comptroller General Gene Dodaro of the U.S.
Government Accountability Office (GAO), November 23, 2020, at https://republicans-energycommerce.house.gov/wp-Government Accountability Office (GAO), November 23, 2020, at https://republicans-energycommerce.house.gov/wp-
content/uploads/2020/11/11.23.20-Letter-to-GAO-on-ReConnect-Audit.pdf. content/uploads/2020/11/11.23.20-Letter-to-GAO-on-ReConnect-Audit.pdf.
4544 Letter from Sen. Jeffrey A. Merkley, Sen. Ron Wyden, Rep. Suzanne Bonamici, Rep. Kurt Schrader, and Rep. Peter Letter from Sen. Jeffrey A. Merkley, Sen. Ron Wyden, Rep. Suzanne Bonamici, Rep. Kurt Schrader, and Rep. Peter
A. DeFazio to Agriculture Secretary Sonny Perdue, February 26, 2020, at https://www.merkley.senate.gov/news/press-A. DeFazio to Agriculture Secretary Sonny Perdue, February 26, 2020, at https://www.merkley.senate.gov/news/press-
releases/merkley-wyden-press-agency-overseeing-reconnect-rural-broadband-program-to-address-serious-application-releases/merkley-wyden-press-agency-overseeing-reconnect-rural-broadband-program-to-address-serious-application-
hurdles-2020. hurdles-2020.
4645 Letter from Sen. Jeffrey A. Merkley, Sen. Ron Wyden, Rep. Suzanne Bonamici, Rep. Kurt Schrader, and Rep. Peter Letter from Sen. Jeffrey A. Merkley, Sen. Ron Wyden, Rep. Suzanne Bonamici, Rep. Kurt Schrader, and Rep. Peter
A. DeFazio to Agriculture Secretary Sonny Perdue, February 26, 2020, at https://www.merkley.senate.gov/news/press-A. DeFazio to Agriculture Secretary Sonny Perdue, February 26, 2020, at https://www.merkley.senate.gov/news/press-
releases/merkley-wyden-press-agency-overseeing-reconnect-rural-broadband-program-to-address-serious-application-releases/merkley-wyden-press-agency-overseeing-reconnect-rural-broadband-program-to-address-serious-application-
hurdles-2020. hurdles-2020.
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Potential Duplication
Some Members of Congress have expressed concern that projects funded through the ReConnect Some Members of Congress have expressed concern that projects funded through the ReConnect
Program could build broadband networks in areas where networks already exist.Program could build broadband networks in areas where networks already exist.4746 Members have Members have
asserted that the similarity of the ReConnect Program’s mission to some FCC broadband asserted that the similarity of the ReConnect Program’s mission to some FCC broadband
programs (i.e., to deploy broadband to high-cost areas) was likely to result in a duplication of programs (i.e., to deploy broadband to high-cost areas) was likely to result in a duplication of
efforts. efforts.
Some stakeholders have argued that the ReConnect Program regulations put in place to avoid Some stakeholders have argued that the ReConnect Program regulations put in place to avoid
duplication, not the duplication itself, are problematic. The FOAs for Rounds 1 and 2 of the duplication, not the duplication itself, are problematic. The FOAs for Rounds 1 and 2 of the
program made service areas ineligible for the ReConnect Program if they received funding for program made service areas ineligible for the ReConnect Program if they received funding for
certain FCC broadband programs (83 certain FCC broadband programs (83 Federal Register 64315, 84 64315, 84 Federal Register 67913). These 67913). These
FCC programs provided support for deployment of satellite broadband services. These FCC programs provided support for deployment of satellite broadband services. These
stakeholders assert these programs are not to be considered equivalent to the ReConnect Program stakeholders assert these programs are not to be considered equivalent to the ReConnect Program
because USDA does not consider satellite service sufficient.because USDA does not consider satellite service sufficient.4847 ReConnect Program projects ReConnect Program projects
provide fixed terrestrial broadband, including fixed wireless service, but may not provide satellite provide fixed terrestrial broadband, including fixed wireless service, but may not provide satellite
service (7 C.F.R §1740.12). service (7 C.F.R §1740.12).
As a result of non-duplication regulations, many rural areas that received broadband service via As a result of non-duplication regulations, many rural areas that received broadband service via
satellite through the FCC programs were not eligible for funding under ReConnect. Some satellite through the FCC programs were not eligible for funding under ReConnect. Some
Members of Congress, in a letter to the Secretary of Agriculture, noted that satellite service was Members of Congress, in a letter to the Secretary of Agriculture, noted that satellite service was
“ill-suited for the telemedicine, mental health services and interactive distance learning “ill-suited for the telemedicine, mental health services and interactive distance learning
broadband applications that are critical for rural Americans.”broadband applications that are critical for rural Americans.”4948 They requested that service areas They requested that service areas
that had previously received FCC funding for projects deploying satellite service also be eligible that had previously received FCC funding for projects deploying satellite service also be eligible
for ReConnect Program funding. The FOAs for the program from December 14, 2018, and for ReConnect Program funding. The FOAs for the program from December 14, 2018, and
December 12, 2019, put restrictions on service areas that received prior funding from the FCC’s December 12, 2019, put restrictions on service areas that received prior funding from the FCC’s
Connect America Fund Phase II AuctionConnect America Fund Phase II Auction – –Auction 903 (CAF II) (83 Auction 903 (CAF II) (83 Federal Register 64318, 84 64318, 84
Federal Register 67917). The FOAs stated that service areas that had received CAF II funding 67917). The FOAs stated that service areas that had received CAF II funding
were ineligible to all entities except the entity that was receiving the CAF II support. The CAF II-were ineligible to all entities except the entity that was receiving the CAF II support. The CAF II-
supported entity would be limited to a 100% loan through the ReConnect Program. supported entity would be limited to a 100% loan through the ReConnect Program.
Broadband Legislation in the 117th Congress
As of October 2021, eight bills have been introduced in the 117th Congress to expand broadband As of October 2021, eight bills have been introduced in the 117th Congress to expand broadband
access throughout the United States that would affect the ReConnect Program.access throughout the United States that would affect the ReConnect Program.5049 One bill (H.R. One bill (H.R.
3684, the Infrastructure Investment and Jobs Act) passed the House and Senate and was signed 3684, the Infrastructure Investment and Jobs Act) passed the House and Senate and was signed

4746 Letter from House Committee on Energy and Commerce ranking member Rep. Greg Walden, Rep. Robert E. Latta, Letter from House Committee on Energy and Commerce ranking member Rep. Greg Walden, Rep. Robert E. Latta,
Rep. Pete Olson, Rep. Adam Kinzinger, Rep. Gus M. Bilirakis, Rep. Bill Johnson, Rep. Billy Long, Rep. Bill Flores, Rep. Pete Olson, Rep. Adam Kinzinger, Rep. Gus M. Bilirakis, Rep. Bill Johnson, Rep. Billy Long, Rep. Bill Flores,
Rep. Susan W. Brooks, Rep. Tim Walberg, and Rep. Greg Gianforte to Comptroller General Gene Dodaro of the GAO, Rep. Susan W. Brooks, Rep. Tim Walberg, and Rep. Greg Gianforte to Comptroller General Gene Dodaro of the GAO,
November 23, 2020, at https://republicans-energycommerce.house.gov/wp-content/uploads/2020/11/11.23.20-Letter-November 23, 2020, at https://republicans-energycommerce.house.gov/wp-content/uploads/2020/11/11.23.20-Letter-
to-GAO-on-ReConnect-Audit.pdf. to-GAO-on-ReConnect-Audit.pdf.
4847 Katie Kienbaum, “Community Broadband Networks Round Up Half of ReConnect Round One Awards,” Katie Kienbaum, “Community Broadband Networks Round Up Half of ReConnect Round One Awards,” ILSR,, April April
8, 2020. 8, 2020.
4948 Letter from Sen. Ron Wyden, Sen. John Barrasso, Sen. Jeffrey A. Merkley, Sen. Michael B. Enzi, Sen. Patty Murray, Letter from Sen. Ron Wyden, Sen. John Barrasso, Sen. Jeffrey A. Merkley, Sen. Michael B. Enzi, Sen. Patty Murray,
Sen. Doug Jones, Sen. Tammy Baldwin, Sen. Tom Udall, and Sen. Angus S. King, Jr. to Agriculture Secretary Sonny Sen. Doug Jones, Sen. Tammy Baldwin, Sen. Tom Udall, and Sen. Angus S. King, Jr. to Agriculture Secretary Sonny
Perdue, February 26, 2020, at https://www.wyden.senate.gov/imo/media/doc/Perdue, February 26, 2020, at https://www.wyden.senate.gov/imo/media/doc/
022620%20Wyden%20Led%20USDA%20ReConnect%20Letter.pdf. 022620%20Wyden%20Led%20USDA%20ReConnect%20Letter.pdf.
5049 On October 13, 2021, CRS conducted a search of bills in the Congress.gov database to determine legislation On October 13, 2021, CRS conducted a search of bills in the Congress.gov database to determine legislation
introduced by the 117th Congress that involved broadband. CRS used search term “broadband” and selected the 117th introduced by the 117th Congress that involved broadband. CRS used search term “broadband” and selected the 117th
Congress (2021-2022) and bills (H.R. or S.). Congress (2021-2022) and bills (H.R. or S.).
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into law by President Joe Biden as P.L. 117-58. As for the other seven bills, six were introduced into law by President Joe Biden as P.L. 117-58. As for the other seven bills, six were introduced
in the House, and one bill was introduced in the Senate. A description of selected bills and their in the House, and one bill was introduced in the Senate. A description of selected bills and their
impact or potential impact on the ReConnect Program follows. impact or potential impact on the ReConnect Program follows.
Enacted into Law
  P.L. 117-58. The Infrastructure Investment and Jobs Act provides funding to The Infrastructure Investment and Jobs Act provides funding to
build and enhance infrastructure across the United States, including broadband build and enhance infrastructure across the United States, including broadband
infrastructure. The Senate agreed to the bill on August 10, 2021, and the House infrastructure. The Senate agreed to the bill on August 10, 2021, and the House
agreed to the bill on November 5, 2021. President Biden signed the bill into law agreed to the bill on November 5, 2021. President Biden signed the bill into law
on November 15, 2021. The law provides $1.926 billion in additional funding for on November 15, 2021. The law provides $1.926 billion in additional funding for
the ReConnect Program.the ReConnect Program.5150 This funding is more than three times the $635 million This funding is more than three times the $635 million
that Congress appropriated for the ReConnect Program in FY2021. The bill that Congress appropriated for the ReConnect Program in FY2021. The bill
allows up to 4% of these funds to be used for administrative costs and up to 3% allows up to 4% of these funds to be used for administrative costs and up to 3%
to be used for technical assistance to potential applicants. It directs $5 million of to be used for technical assistance to potential applicants. It directs $5 million of
the technical assistance funds be used to establish and support cooperatives that the technical assistance funds be used to establish and support cooperatives that
are to offer broadband service in rural areas. are to offer broadband service in rural areas.
Introduced in the House
  H.R. 2400. As introduced on April 8, 2021, the Community Broadband Mapping As introduced on April 8, 2021, the Community Broadband Mapping
Act would provide RUS the authority to make grants to entities to collect Act would provide RUS the authority to make grants to entities to collect
broadband infrastructure data. The data would include the location of broadband broadband infrastructure data. The data would include the location of broadband
infrastructure and the homes in rural areas that are provided with non-satellite infrastructure and the homes in rural areas that are provided with non-satellite
broadband service. Rural areas would be defined as areas with populations of broadband service. Rural areas would be defined as areas with populations of
fewer than 25,000 people. Eligible applicants would include local governments, fewer than 25,000 people. Eligible applicants would include local governments,
community organizations, electric and telephone cooperatives, and small internet community organizations, electric and telephone cooperatives, and small internet
providers. The bill would allow the Secretary of Agriculture to make grants under providers. The bill would allow the Secretary of Agriculture to make grants under
the ReConnect Program to eligible entities to collect broadband infrastructure the ReConnect Program to eligible entities to collect broadband infrastructure
data. data.
  H.R. 3369. As introduced on May 20, 2021, the Broadband for Rural America As introduced on May 20, 2021, the Broadband for Rural America
Act would combine the ReConnect Program and the Rural Broadband Program Act would combine the ReConnect Program and the Rural Broadband Program
to create the ReConnect Rural Broadband Program. The new program would to create the ReConnect Rural Broadband Program. The new program would
provide grants, loans, loan/grant combinations, and loan guarantees to finance the provide grants, loans, loan/grant combinations, and loan guarantees to finance the
construction, improvement, and acquisition of facilities and equipment to expand construction, improvement, and acquisition of facilities and equipment to expand
broadband service in rural areas. The highest priority for funding would go to broadband service in rural areas. The highest priority for funding would go to
applications proposing projects in rural communities without broadband access at applications proposing projects in rural communities without broadband access at
10/1 Mbps. 10/1 Mbps.
  H.R. 3435. As introduced on May 20, 2021, the American Broadband Act would As introduced on May 20, 2021, the American Broadband Act would
establish a broadband expansion grant program at the Department of Commerce establish a broadband expansion grant program at the Department of Commerce
(DOC) and revise the permitting process for fixed and mobile broadband service. (DOC) and revise the permitting process for fixed and mobile broadband service.
The bill includes provisions aimed at preventing duplication between projects The bill includes provisions aimed at preventing duplication between projects
funded through the new program and those funded through the ReConnect funded through the new program and those funded through the ReConnect
Program. Applicants applying for the new grant program would be required to Program. Applicants applying for the new grant program would be required to
disclose their receipt of any current grants or loans through the ReConnect disclose their receipt of any current grants or loans through the ReConnect
Program. In addition, the Secretary of Agriculture would be directed to review Program. In addition, the Secretary of Agriculture would be directed to review

5150 For more information, see CRS In Focus IF11918, For more information, see CRS In Focus IF11918, Infrastructure Investment and Jobs Act: Funding for USDA Rural
Broadband Programs, by Lisa S. Benson and Alyssa R. Casey. , by Lisa S. Benson and Alyssa R. Casey.
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the proposed service areas in applications for the new program to identify the proposed service areas in applications for the new program to identify
possible duplication with projects funded through the ReConnect Program. possible duplication with projects funded through the ReConnect Program.
  H.R. 3654. As introduced on June 1, 2021, the Rural Opportunities for As introduced on June 1, 2021, the Rural Opportunities for
Broadband in Underserved Settlements and Towns Act (the ROBUST Act) would Broadband in Underserved Settlements and Towns Act (the ROBUST Act) would
aim to expand access to the electromagnetic spectrum to be used to deliver aim to expand access to the electromagnetic spectrum to be used to deliver
broadband service to rural areas. The bill would require that ReConnect Program broadband service to rural areas. The bill would require that ReConnect Program
funding be used to provide engineering support to program applicants. The bill funding be used to provide engineering support to program applicants. The bill
would require the Secretary of Agriculture to do the following when would require the Secretary of Agriculture to do the following when
administering the ReConnect Program: (1) give priority to projects that provide administering the ReConnect Program: (1) give priority to projects that provide
at least 25/3 Mbps broadband speeds to the proposed service area, (2) provide at least 25/3 Mbps broadband speeds to the proposed service area, (2) provide
engineering support to new applicants, and (3) use program funding to cover engineering support to new applicants, and (3) use program funding to cover
costs associated with applicants preparing engineering reports. costs associated with applicants preparing engineering reports.
  H.R. 4374. As introduced on July 9, 2021, the Broadband Internet Connections As introduced on July 9, 2021, the Broadband Internet Connections
for Rural America Act would combine the ReConnect Program and the Rural for Rural America Act would combine the ReConnect Program and the Rural
Broadband Access Program into one program called the ReConnect Rural Broadband Access Program into one program called the ReConnect Rural
Broadband Program. The new program would provide grants, loans, loan/grant Broadband Program. The new program would provide grants, loans, loan/grant
combinations, and loan guarantees to finance the costs of the construction, combinations, and loan guarantees to finance the costs of the construction,
improvement, and acquisition of facilities and equipment needed to expand improvement, and acquisition of facilities and equipment needed to expand
broadband service in rural areas. The highest priority for funding would be given broadband service in rural areas. The highest priority for funding would be given
to applications proposing projects in rural communities without broadband access to applications proposing projects in rural communities without broadband access
at 10/1 Mbps. The bill would authorize funding of $4.5 billion annually for at 10/1 Mbps. The bill would authorize funding of $4.5 billion annually for
FY2022 through FY2029. FY2022 through FY2029.
  H.R. 4825. As introduced on July 29, 2021, the 21st Century Broadband As introduced on July 29, 2021, the 21st Century Broadband
Deployment Act would create a new broadband expansion grant program at DOC Deployment Act would create a new broadband expansion grant program at DOC
that would facilitate partnerships of state or local government entities and that would facilitate partnerships of state or local government entities and
broadband service providers. The new program also would revise the permitting broadband service providers. The new program also would revise the permitting
process. The bill would authorize appropriations of $20 billion annually for the process. The bill would authorize appropriations of $20 billion annually for the
new program for FY2023 through FY2027. The bill includes provisions to ensure new program for FY2023 through FY2027. The bill includes provisions to ensure
that projects funded through the new program would not duplicate projects that projects funded through the new program would not duplicate projects
funded through the ReConnect Program. Applicants for the new grant program funded through the ReConnect Program. Applicants for the new grant program
would be required to disclose any funding received through the ReConnect would be required to disclose any funding received through the ReConnect
Program. The Secretary of Agriculture would be required to review grant Program. The Secretary of Agriculture would be required to review grant
applications for the new program to determine whether the proposed projects applications for the new program to determine whether the proposed projects
would duplicate projects funded through the ReConnect Program. would duplicate projects funded through the ReConnect Program.
Introduced in the Senate
  S. 944. As introduced on March 24, 2021, the State Funding for Internet As introduced on March 24, 2021, the State Funding for Internet
Expansion Act of 2021 would establish a new program at DOC to expand Expansion Act of 2021 would establish a new program at DOC to expand
broadband access in unserved and underserved areas, including anchor broadband access in unserved and underserved areas, including anchor
institutions, such as schools, libraries, museums, clinics, and public housing. The institutions, such as schools, libraries, museums, clinics, and public housing. The
bill includes provisions that would ensure projects funded through the new bill includes provisions that would ensure projects funded through the new
program would not duplicate projects funded through the ReConnect Program. It program would not duplicate projects funded through the ReConnect Program. It
would also establish a process for federal agencies, including USDA, that offer would also establish a process for federal agencies, including USDA, that offer
similar broadband programs to coordinate between themselves to prevent similar broadband programs to coordinate between themselves to prevent
duplication. duplication.
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Potential Policy Options
Congress may consider policy options related to the ReConnect Program. Policy options to Congress may consider policy options related to the ReConnect Program. Policy options to
increase program efficiency could focus on increasing broadband affordability and broadband increase program efficiency could focus on increasing broadband affordability and broadband
adoption in rural communities. The following section provides an overview of these potential adoption in rural communities. The following section provides an overview of these potential
policy options. policy options.
Broadband Affordability
Congress may address rural broadband adoption by focusing on its affordability. Researchers Congress may address rural broadband adoption by focusing on its affordability. Researchers
have found that broadband adoption is lower among rural residents compared with urban have found that broadband adoption is lower among rural residents compared with urban
residents.residents.5251 Cost is one factor among others affecting broadband adoption. To increase broadband Cost is one factor among others affecting broadband adoption. To increase broadband
adoption among rural residents, Congress might develop legislation to allow ReConnect funds to adoption among rural residents, Congress might develop legislation to allow ReConnect funds to
be used to make broadband service more affordable for rural residents. For example, Congress be used to make broadband service more affordable for rural residents. For example, Congress
might model potential legislation after the FCC Affordable Connectivity Program, which provides might model potential legislation after the FCC Affordable Connectivity Program, which provides
subsidies to ISPs to cover residential broadband service. The monthly subsidies for providers are subsidies to ISPs to cover residential broadband service. The monthly subsidies for providers are
up to $30 per household and up to $75 per household on tribal lands in cases where the service up to $30 per household and up to $75 per household on tribal lands in cases where the service
cannot be maintained at the lower rate of $30 per household.cannot be maintained at the lower rate of $30 per household.5352 Congress modified, extended, and Congress modified, extended, and
renamed the FCC Emergency Broadband Benefit Program to create the Affordable Connectivity renamed the FCC Emergency Broadband Benefit Program to create the Affordable Connectivity
Program through the Infrastructure Investment and Jobs Act (P.L. 117-58). Congress funded the Program through the Infrastructure Investment and Jobs Act (P.L. 117-58). Congress funded the
FCC’s Emergency Broadband Benefit Program through the Emergency Broadband Connectivity FCC’s Emergency Broadband Benefit Program through the Emergency Broadband Connectivity
Fund,Fund,5453 which it established to help Americans afford internet service during the COVID-19 which it established to help Americans afford internet service during the COVID-19
pandemic (P.L. 116-260, Division N, Title IX, §904). If Congress were to consider this model for pandemic (P.L. 116-260, Division N, Title IX, §904). If Congress were to consider this model for
the ReConnect Program, it might also consider how to avoid the potential for duplication between the ReConnect Program, it might also consider how to avoid the potential for duplication between
any such use of the ReConnect Program and the Affordable Connectivity Program. any such use of the ReConnect Program and the Affordable Connectivity Program.
Training and Education
Congress may address rural broadband expansion through training and education efforts. Congress may address rural broadband expansion through training and education efforts.
Researchers have found that rural residents are more likely to access the internet when they Researchers have found that rural residents are more likely to access the internet when they
identify essential tasks that they can complete using the internet, such as connecting virtually with identify essential tasks that they can complete using the internet, such as connecting virtually with
suppliers and learning about community events or activities.suppliers and learning about community events or activities.5554 To increase broadband adoption by To increase broadband adoption by
rural residents, Congress might consider enacting legislation to allow ReConnect Program funds rural residents, Congress might consider enacting legislation to allow ReConnect Program funds
to be used for training programs that teach rural residents how to use the internet to accomplish to be used for training programs that teach rural residents how to use the internet to accomplish
essential tasks. For example, potential programs could provide training on tools that can be used essential tasks. For example, potential programs could provide training on tools that can be used
for e-commerce and social media for small businesses. Training programs could also help rural for e-commerce and social media for small businesses. Training programs could also help rural
residents access job training and career opportunities, particularly for telework. Congress might residents access job training and career opportunities, particularly for telework. Congress might
model any such legislation after USDA’s DLT Program, which provides training and education to model any such legislation after USDA’s DLT Program, which provides training and education to
rural communities to enhance their interest and ability to participate in telehealth (7 U.S.C. rural communities to enhance their interest and ability to participate in telehealth (7 U.S.C.

5251 CRS Report R46108, CRS Report R46108, Demand for Broadband in Rural Areas: Implications for Universal Access, by Brian E. , by Brian E.
Humphreys. Humphreys.
5352 CRS Report R46967, CRS Report R46967, The Infrastructure Investment and Jobs Act (P.L. 117-58): Summary of the Broadband
Provisions in Division F, coordinated by Patricia Moloney Figliola. , coordinated by Patricia Moloney Figliola.
5453 CRS Insight IN11612, CRS Insight IN11612, The Emergency Broadband Benefit: Implementation and Future Policy Directions, by Brian , by Brian
E. Humphreys. For additional information, see https://www.fcc.gov/emergency-broadband-benefit-program. E. Humphreys. For additional information, see https://www.fcc.gov/emergency-broadband-benefit-program.
5554 CRS Report R46108, CRS Report R46108, Demand for Broadband in Rural Areas: Implications for Universal Access, by Brian E. , by Brian E.
Humphreys; and Jean-Paul Peronard and Flemming Just, “User Motivation For Broadband: A Rural Danish Study,” Humphreys; and Jean-Paul Peronard and Flemming Just, “User Motivation For Broadband: A Rural Danish Study,”
Telecommunications Policy,, vol.vol. 35, issue 8 (September 2011), pp. 691-701. 35, issue 8 (September 2011), pp. 691-701.
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§§950aaa et seq.). Congress could also use the U.S. Department of Labor’s Workforce §§950aaa et seq.). Congress could also use the U.S. Department of Labor’s Workforce
Opportunity for Rural Communities Initiative program as a model.Opportunity for Rural Communities Initiative program as a model.5655 The program provides grants The program provides grants
to support workforce development activities that prepare rural workers for jobs in high-demand to support workforce development activities that prepare rural workers for jobs in high-demand
occupations that are aligned with a regional or community economic development strategy. occupations that are aligned with a regional or community economic development strategy.

Author Information

Lisa S. Benson Lisa S. Benson

Analyst in Agricultural Policy Analyst in Agricultural Policy

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.

5655 For more information, see U.S. Department of Labor, “Workforce Opportunity for Rural Communities (WORC) For more information, see U.S. Department of Labor, “Workforce Opportunity for Rural Communities (WORC)
Initiative,” at https://www.dol.gov/agencies/eta/dislocated-workers/grants/workforce-opportunity. Initiative,” at https://www.dol.gov/agencies/eta/dislocated-workers/grants/workforce-opportunity.
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