September 9, 2021
Infrastructure Investment and Jobs Act: Funding for USDA
Rural Broadband Programs
On August 10, 2021, the Senate passed the Infrastructure
FY2020, and $2 million in FY2021 for Rural Broadband
Investment and Jobs Act (H.R. 3684). The bill would invest
Program loan subsidies.
in the nation’s infrastructure, including roads, highways,
and electric, water, and railway systems. The bill would
Congress has provided a more restrictive definition of
also invest in broadband (i.e., high-speed internet)
eligible service areas for the ReConnect Program than for
infrastructure, including in rural areas where households
the Rural Broadband Program. The definition for eligible
have historically had lower access to broadband compared
service areas involves two parts: the minimum broadband
with households in urban and suburban areas.
speeds that constitute “sufficient access” and the percent of
households that have access to broadband at those speeds.
The infrastructure bill includes funding for two U.S.
ReConnect defines eligible service areas as areas where at
Department of Agriculture (USDA) broadband programs
least 90% of households lack sufficient access to
that serve rural communities: the ReConnect Program and
broadband. Sufficient access is defined as speeds of at least
the Rural Broadband Program. This is in addition to
10 megabits per second download and 1 megabit per second
provisions that would amend or provide funding to
upload (i.e., 10/1 Mbps). The Rural Broadband Program
broadband programs administered by the U.S. Department
defines eligible service areas as areas where at least 50% of
of Commerce’s National Telecommunications and
households do not have sufficient broadband access.
Information Administration (NTIA) and the Federal
Sufficient broadband access is defined as speeds of at least
Communications Commission (FCC). This InFocus
25/3 Mbps.
summarizes the provisions in the Senate-passed
infrastructure bill related to the ReConnect Program and the
Congress has provided higher annual funding levels for the
Rural Broadband Program.
ReConnect Program (those projects must serve rural
communities with higher levels of need). By contrast, the
Program Overviews
Rural Broadband Program has received lower annual
The ReConnect Program offers loans, grants, and loan/grant
funding levels from Congress (eligibility criteria is less
combinations to help construct or improve facilities
restrictive than the ReConnect Program).
required to provide broadband access to rural areas. Eligible
applicants include corporations, cooperatives, public
Infrastructure Investment and Jobs Act
entities, U.S. territories, and federally recognized Indian
Funding
tribes. The program can also fund the acquisition or
Division J, Title I of the Senate-passed H.R. 3684 would
upgrade of an existing system not currently providing
provide $2 billion for USDA broadband programs , to
sufficient broadband access.
remain available until expended. This would include $1.926
billion for ReConnect Program grants and loans and $74
The Rural Broadband Program offers loans to help
million for Rural Broadband Program loans. The funding
construct, improve, or acquire facilities and equipment
provided would exceed FY2021 levels by $1.291 billion
needed to provide broadband access to rural areas. Eligible
(+203%) for the ReConnect Program and by $72 million
applicants include corporations, cooperatives, public
(+97%) for the Rural Broadband Program. The bill would
entities, U.S. territories, and federally recognized Indian
allow up to 4% of funding for both programs to be used for
tribes. Congress has also authorized the Rural Broadband
administrative costs (i.e., $80 million) and up to 3% of
Program to issue grants and loan guarantees (in recent
funding to be used for technical assistance to potential
years, Congress has appropriated funding only for direct
applicants (i.e., $60 million). It would also direct $5 million
loans).
of the technical assistance funds to establish and support
cooperatives to offer broadband service in rural areas.
Although the programs are similar in mission, key
Additionally, the bill would direct USDA to collaborate
distinctions include funding levels and how the programs
with the FCC and the NTIA in awarding funding for
define eligible service areas. In recent years, Congress has
broadband projects.
provided more funding for the ReConnect Program than for
the Rural Broadband Program. As an example, Congress
Infrastructure Investment and Jobs Act
appropriated $550 million in FY2019, $555 million in
Requirements for ReConnect Projects
FY2020, and $635 million in FY2021 for ReConnect
The infrastructure bill includes not only funding but also
Program grants and loan subsidies, and Congress
language that directs how USDA is to administer the
appropriated $5.8 million in FY2019, $2 million in
ReConnect Program funding. These provisions do not apply
to the Rural Broadband Program. The provisions focus on
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Infrastructure Investment and Jobs Act: Funding for USDA Rural Broadband Pr ograms
the ReConnect Program’s definition for eligible service
§950bb(b)(3)). It would also allow the Secretary of
areas (i.e., percent of households without sufficient
Agriculture to allocate up to $50 million of ReConnect
broadband access and the minimum speeds that constitute
Program funds to projects in areas rural in character. Rural
sufficient access). The next section describes the provisions
in character is a designation with statutory authority in the
included in the bill and compares these provisions with the
Consolidated Farm and Rural Development Act (P.L. 87-
current law, current regulations governing the ReConnect
128). The designation allows the Secretary of Agriculture to
Program (7 C.F.R. §1740), or recent funding opportunity
consider communities that do not meet the definition of a
announcements (FOAs) published in the Federal Register.
rural area under certain USDA Rural Development
programs to be eligible for funding if they have qualities
Proposed Service Area Requirements
that are rural in character.
The bill would define eligible areas for ReConnect projects
funded by H.R. 3684 as rural areas where at least 50% of
Similar to prior rounds of funding. The definition of rural
households lack sufficient broadband access. It would
area in H.R. 3684 is the same definition used in current
define sufficient broadband access as speeds of at least 25/3
ReConnect program regulations. Regulations do not contain
Mbps.
language allowing funding to be allocated to projects in
areas rural in character. However, the Consolidated
Less restrictive than current regulations. This definition
Appropriations Act, 2021 (P.L. 116-260, Division A,
of eligible areas would be less restrictive than current
Section 791) allocated up to 10% of ReConnect Program
ReConnect Program requirements. Currently, the program
funding for projects serving rural in character communities.
requires that 90% of households served by projects be in
areas without sufficient broadband access. Regulations state
Other ReConnect Program Criteria
that USDA will define the minimum speeds that constitute
In addition to the criteria above, the Senate-passed H.R.
sufficient broadband access in FOAs; these speeds may not
3684 would allow pole attachment fees and replacement
be lower than 10/1 Mbps.
costs for shared use of utility poles owned by electric
cooperatives to be eligible costs under ReConnect projects
Set-Aside for High-Need Rural Areas
funded by the bill. The bill would also waive matching
The bill would require that 10% of the funding for the
requirements for applicants that are Alaska Native
ReConnect Program (i.e., $192.6 million) be set aside for
Corporations or federally recognized Tribes on underserved
service areas where at least 90% of households are in a
trust lands. Additionally, it would waive matching
rural area without sufficient broadband access (speeds of at
requirements for projects that serve colonias or persistent
least 25/3 Mbps).
poverty counties (counties that have had a poverty rate of
20% or higher over the past 30 years).
Less restrictive than prior rounds of funding. This
requirement would be less restrictive than current
Comparison with current law. Current law, program
ReConnect Program requirements for sufficient broadband
regulations, and prior FOAs have not specified whether
access. The two ReConnect FOAs to date defined sufficient
pole attachment fees and replacement costs are eligible
broadband access as speeds of at least 10/1 Mbps. The
project costs. Current law allows USDA to waive matching
threshold for high-need areas—90% of households lacking
requirements for certain utilities projects on underserved
sufficient access—is the same threshold that defines an
trust lands (7 U.S.C. §936f). In recent years, Congress has
eligible service area in current program regulations.
directed in annual appropriations acts that at least 10% of
direct loan and grant funding under certain USDA rural
Broadband Buildout Speed for Projects
housing, business, and utilities programs be allocated for
The bill would require ReConnect Program projects to
projects in persistent poverty counties. This language did
provide broadband service to the proposed service area at
not apply to funding for the ReConnect Program.
minimum speeds of 100/20 Mbps.
Additional CRS Resources
More restrictive than prior rounds of funding. Current
CRS In Focus IF11262, USDA’s ReConnect Broadband
program regulations state that USDA will define buildout
Pilot Program, by Alyssa R. Casey
speeds—the minimum broadband speeds USDA requires
project awardees to provide—in FOAs. Prior FOAs have
CRS Report RL33816, Broadband Loan and Grant
required projects to deliver broadband to the proposed
Programs in the USDA’s Rural Utilities Service, by
service area at speeds of at least 25/3 Mbps. The most
Lennard G. Kruger and Alyssa R. Casey
recent FOA gave priority to applications that would provide
broadband service to the proposed area at 100 Mbps
CRS Report R46780, Overview of the Universal Service
Fund and Selected Federal Broadband Programs,
symmetrical speeds (i.e., 100/100 Mbps).
coordinated by Patricia Moloney Figliola
Rural in Character Exception
The bill would use the definition of eligible rural area
Lisa S. Benson, Analyst in Agricultural Policy
codified in the Rural Electrification Act: cities or towns
Alyssa R. Casey, Analyst in Agricultural Policy
with 20,000 or fewer inhabitants and not in an urbanized
IF11918
area contiguous and adjacent to a city or town that has a
population of greater than 50,000 inhabitants (7 U.S.C.
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Infrastructure Investment and Jobs Act: Funding for USDA Rural Broadband Programs
Disclaimer
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