USDA’s ReConnect Broadband Pilot Program

USDA’s ReConnect Broadband Pilot Program

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Updated August 3, 2020
USDA’s ReConnect Broadband Pilot Program
Congress established the Rural e-Connectivity Pilot
loan, $50 million for a loan/grant combination (loan and
Program (also known as ReConnect) in the FY2018
grant amounts must be equal), or $25 million for a grant.
consolidated appropriations act. ReConnect provides loan
and grant funding to eligible entities to deploy broadband
Round 1 funds could be used for
internet service in eligible rural areas. The U.S. Department
 construction or improvement of facilities required to
of Agriculture’s Rural Utilities Service (RUS) administers
provide broadband service,
ReConnect.
 terrestrial-based facilities for satellite broadband service,
Program Authority and Funding
 reasonable pre-application expenses in an amount not to
In the Consolidated Appropriations Act, 2018 (P.L. 115-
exceed 5% of the award, and
141, Division B, §779), Congress provided $600 million for

the Secretary of Agriculture to conduct a new broadband
acquisition and upgrade of an existing system that does
loan and grant pilot program under the Rural Electrification
not currently provide sufficient access to broadband
Act of 1936 (7 U.S.C. §901 et seq.). Congress directed that,
(acquisitions eligible only for 100% loans.)
to receive assistance, projects must serve rural areas where
Eligible applicants included state or local governments,
at least 90% of households lack “sufficient access to
territories or possessions of the United States, Indian tribes,
broadband”—speeds of at least 10 megabits per second
nonprofit entities, for-profit corporations, limited liability
(Mbps) download and 1 Mbps upload (known as 10/1
companies, and cooperative or mutual organizations.
Mbps), to be redetermined, as necessary, by the Secretary
of Agriculture. Congress also directed that ReConnect
RUS required applicants to define a Proposed Funded
assistance not overbuild or duplicate prior broadband
Service Area (PFSA)—an area where the applicant
expansion efforts financed by RUS.
proposed to provide broadband service. An eligible PFSA
had to be a rural area—defined as a city, town, or
Congress subsequently provided $550 million for
incorporated area with a population of 20,000 or fewer and
ReConnect in FY2019 (P.L. 116-6, Division B, §762) and
not adjacent to a city or town with a population of greater
$555 million in FY2020 (P.L. 116-94, Division B, §787). In
than 50,000. A PFSA did not need to be contiguous and
March 2020, Congress provided an additional $100 million
could include gaps to remove areas that already had
for ReConnect grants in the Coronavirus Aid, Relief, and
sufficient broadband access. With some exceptions, an
Economic Security Act (CARES Act, P.L. 116-136,
entity could not use ReConnect funding to overbuild or
Division B, Title I, §11004). CARES Act funds are to
duplicate broadband expansion efforts made under prior
remain available until September 30, 2021. All other
federal broadband assistance.
appropriated funds for FY2018-FY2020 are to remain
available until expended. Congress has not authorized
For loan and loan/grant combination eligibility, at least
ReConnect in legislation outside of annual Agriculture
90% of households in a PFSA had to lack sufficient access
appropriations acts.
to broadband. For grant eligibility, RUS required 100% of
households in a PFSA to lack sufficient broadband access.
Timeline
RUS also required applicants to build a network capable of
RUS has published two Funding Opportunity
providing broadband service to all premises in the PFSA at
Announcements (FOAs) for ReConnect. RUS published the
minimum speeds of 25/3 Mbps.
first FOA for ReConnect in December 2018 and awarded
first round funds between October 2019 and May 2020.
Second Round of Funding
RUS published the second FOA for ReConnect in
In its second FOA, RUS announced approximately $512
December 2019 and began awarding second round funds in
million in available funding. RUS later announced that it
June 2020.
would also take applications under Round 2 for the $100
million provided for grants in the CARES Act. Funding
First Round of Funding
categories and eligible projects and applicants for Round 2
In the first round of funding, RUS awarded approximately
all remain unchanged from Round 1. RUS also maintains its
$744.3 million to 82 applicants in 34 states and territories.
definition of rural area and its requirement that applicants
Three funding categories were available: 100% loans, 50%
provide broadband service at speeds of at least 25/3 Mbps.
loan/50% grant combinations, and 100% grants. RUS set
maximum award amounts per project at $50 million for a
RUS introduced changes to certain eligibility and
prioritization criteria in Round 2 (see Table 1). In Round 2,
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USDA’s ReConnect Broadband Pilot Program
eligible PFSAs for loans and loan/grant combinations
of at least 10/1 Mbps. In addition to the public notice
remain unchanged. However, for grants, RUS decreased the
process, RUS has stated that it uses data from the Federal
percent of households in a PFSA that must lack sufficient
Communications Commission’s Fixed Broadband
access to broadband from 100% to 90%. The definition of
Deployment Map and conducts site visits to PFSAs to
sufficient access to broadband remains unchanged.
validate existing broadband speeds.
In Round 2, RUS gave priority to applicants that would
ReConnect in Comparison to Other RUS
provide service in Opportunity Zones, which are federally
Broadband Connectivity Programs
designated economic development zones. RUS also revised
In addition to ReConnect, RUS administers three other rural
its scoring criteria for applications to provide one point for
broadband connectivity programs: the Telecommunications
every 10 farms served rather than one point for every farm
Infrastructure Loan Program, the Community Connect
served in Round 1. The agency revised the priorities for
Grant Program, and the Rural Broadband Access Loan and
tribal lands, awarding 10 points to PFSAs with tribal areas
Grant Program. ReConnect differs from these programs in
that have a recently updated broadband plan. In Round 1,
its breadth of available funding categories and in its
RUS awarded five points to applications where 50% or
narrower eligibility criteria.
more of the PFSA was comprised of tribal lands.
ReConnect offers loans, grants, and loan/grant
To help prevent duplication, RUS publishes a public notice
combinations, while Telecommunications Infrastructure
for each ReConnect funding application received. Current
offers only loans and Community Connect offers only
internet service providers may respond to a public notice by
grants. The criteria to determine eligible service areas for
providing information on the number of customers in the
ReConnect is narrower than for Rural Broadband Access.
PFSA who currently purchase broadband service at speeds
For ReConnect eligibility, at least 90% of households in a
of at least 10/1 Mbps. For Round 2, RUS increased the
PFSA must lack access to broadband service at speeds of
number of days current service providers have to respond to
10/1 Mbps. For Rural Broadband Access, 50% (for loans)
a public notice from 30 to 45 days.
or 90% (for grants) of households must lack access to
broadband service at speeds of at least 25/3 Mbps. The
Other evaluation criteria remained the same from Round 1
narrower eligibility criteria for ReConnect reserves funding
to Round 2. Prioritizations that remain unchanged include
for areas with the least access to broadband service,
points for the rurality of the PFSA, the proposed broadband
whereas the broader criteria under Rural Broadband Access
speeds the applicant would provide, and the number of
allows more underserved areas to be eligible for assistance.
businesses, health care centers, educational facilities, and
community facilities served. The agency also maintained
For more information on RUS broadband programs, see
prioritizations for applications in states that do not restrict
CRS Report RL33816, Broadband Loan and Grant
utilities from delivering broadband service and that commit
Programs in the USDA’s Rural Utilities Service, by
to expediting rights-of-way and environmental permitting.
Lennard G. Kruger and Alyssa R. Casey. For more
information on ReConnect, see ReConnect’s website at
RUS continues to use multiple approaches to determine
https://www.usda.gov/reconnect.
whether PFSAs have existing broadband service at speeds
Table 1. Selected Differences Between ReConnect’s First and Second Round Eligibility and Prioritization
Criteria
Round 1
Round 2
Proposed Funded
100% of households (for grants) and 90% of
90% of households (for loans, grants, or loan/grant
Service Areas
households (for loans or loan/grant
combinations) in a PFSA must lack sufficient access to
(PFSAs)
combinations) in a PFSA must lack sufficient
broadband, defined as 10/1 Mbps.
access to broadband, defined as 10/1 Mbps.
Public notice
Incumbent service providers have 30 days to
Incumbent service providers have 45 days to respond to
response period
respond to a public notice.
a public notice.
Tribal land
Applications receive five points if tribal lands
Applications receive 10 points if the tribal area in a
prioritization
comprise at least 50% of the PFSA.
PFSA has a broadband plan that has been updated within
the past five years.
Farm prioritization
Applications receive one point for every farm
Applications receive one point for every 10 farms
served, up to a maximum of 20 points.
served, up to a maximum of 20 points.
Opportunity Zone
No Opportunity Zone prioritization.
Applications receive five points if they propose to
prioritization
provide service in at least part of an Opportunity Zone.
Source: Compiled by CRS, using ReConnect FOAs (see 83 Federal Register 64315, December 14, 2018; and 84 Federal Register 67913,
December 12, 2019).
Notes: Mbps = Megabits per second. Opportunity Zones are federal y designated economic development zones.

Alyssa R. Casey, Analyst in Agricultural Policy
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USDA’s ReConnect Broadband Pilot Program

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