January 19, 2022

Historic Broadband Investment Begins as Federal, State Governments Develop Plans

BY Juliana Bilowich

In November 2021, Congress enacted, and the President signed, the “Investment in Infrastructure and Jobs Act” (IIJA), providing funds not only for “traditional infrastructure” projects like airports, roads, and bridges, but also for improved and expanded broadband deployment across the country.

In total, IIJA approved more than $46 billion in federal funds for broadband construction, digital literacy programming, equitable access mapping, internet service adoption projects, and more. The funds will flow from the federal government level to the state government level via state broadband offices, which will then set up processes for local distribution.

Housing Providers and Federal Internet Investment

With many affordable senior housing communities lacking wall-to-wall internet, federal and state investments in broadband infrastructure are a key priority for LeadingAge. Under various parts of IIJA, multifamily residential housing is specifically mentioned as a potential beneficiary of the investments; households with low incomes and older adults are also highlighted as targets for increased internet access and digital literacy.

To begin rolling the funds out, the federal government will first set general parameters for the uses of the funds and the preparation that states will need to do to access funding; next, states create funding access mechanisms and targets within their jurisdictions. Both levels of government have the ability to steer the investment toward certain recipients and beneficiaries, set up minimum internet quality standards and future-proofing requirements, and develop equitable stakeholder engagement and reporting processes.

As the federal government and then state governments develop plans for the allocation of the broadband funds, LeadingAge is weighing in at every level to ensure the funds create new opportunities for connectivity for HUD-assisted and other underserved older adult households.

To help LeadingAge craft our input and advocacy, join LeadingAge’s Internet Connectivity Working Group by reaching out to Juliana (jbilowich@leadingage.org). LeadingAge’s February 4th comments to NTIA on the new broadband programs is available here.

Deploying Broadband Funds: From the Federal Government to States to Providers

As directed by Congress, the National Telecommunications and Information Administration (NTIA), a federal body within the Department of Commerce, is administering the broadband funds at an overarching level. For the bulk of the IIJA funds, the administration will begin at the federal level and flow down through states until it reaches providers who can deploy broadband services to target populations and areas.

Federal Level First, the federal government (through NTIA) sets the parameters for the program funding to be distributed, including how states should qualify to receive the funds, what emphases and requirements should be added by states distributing the funds locally, and what kinds of reporting and diversity measures should be built in by states in each jurisdiction. NTIA has been given 6 months to develop the rules, starting from the date of IIJA’s enactment (November 14). On February 4, LeadingAge submitted comments calling on NTIA to emphasize equity and affordable housing in their funding allotments

State Level Next, qualifying states will receive allocations of broadband investment and create mechanisms for stakeholders to apply for the funds. This will be managed by state broadband offices, which in many cases are being newly established using the infrastructure funding. States will also need stakeholder input to design equitable and effective procedures. **To locate your state broadband office, click here.**

Provider Level Finally, the funds will reach providers who can deploy broadband in under- or unserved areas. While the exact recipients of funding will vary based on the rules that the federal government (NTIA) and each state craft over the next several months, the law stipulates that the funds can go to various types of providers (including non-profit organizations and small/medium internet providers); the law specifically states that the funds can be used for the installation of broadband service within multifamily residential buildings, and both federal and state level governments are examining population targets to include households with low incomes and older adults.

In order to get HUD-assisted housing communities at the table as broadband investment is deployed, we encourage our housing provider members to contact their state broadband offices. Stay tuned for LeadingAge talking points for advocacy with state offices developing connectivity plans.

Broadband Equity, Access and Deployment (BEAD) Program

The bulk of the broadband investment in IIJA fall under the Broadband Equity, Access, and Deployment (BEAD) Program. Through BEAD, states and territories are allocated $42.45 billion to utilize for broadband deployment, mapping, equity and adoption projects.

IIJA also provides NTIA with discretion to establish additional eligible uses for the funding, and LeadingAge is advocating for affordable housing communities to be at the table.

BEAD program funding will be dispersed in three phases:

Phase One: Planning and Capacity Building The first phase allows states and territories to access up to $5 million each to support planning efforts, including building capacity in state broadband offices and to fund outreach and coordination activities with local communities and stakeholders.

Phase Two: Submitting State Plans The second phase requires states and territories to submit an initial broadband plan to NTIA. These plans must be informed by collaboration with local and regional entities and will lay out how each respective state and territory will use the BEAD funding and other funds to bring reliable, affordable, high-speed broadband to all residents.

Phase Three: Accessing Funds Once NTIA approves the initial plan, states and territories will be able to access additional funds from their BEAD allocation. States and territories will be able to access the remaining funds upon review and approval of a final plan by NTIA.

Each state, DC, and P.R. will receive an initial allocation of $100 million—and $100 million will be divided equally among the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. NTIA will distribute the remaining funding based on a formula that considers the number of unserved and high-cost locations in the state, based on the updated broadband availability maps to be published by the FCC.

Other Broadband Investment through the Infrastructure Law

Implementation of the Digital Equity Act of 2021 The Digital Equity Act within IIJA dedicated $2.75 billion to establish three grant programs that promote digital inclusion and equity to ensure that all individuals and communities have the skills, technology, and capacity needed to reap the full benefits of our digital economy. The goal of these programs is to promote the meaningful adoption and use of broadband services across targeted populations, including low-income households, aging populations, incarcerated individuals, veterans, individuals with disabilities, individuals with a language barrier, racial and ethnic minorities, and rural inhabitants.

Implementation of Middle Mile Broadband Infrastructure (MMBI) Grant Program This MMBI is a $1 billion program for the construction, improvement, or acquisition of middle-mile infrastructure. The purpose of the grant program is to expand and extend middle-mile infrastructure to reduce the cost of connecting unserved and underserved areas to the internet backbone. Eligible applicants include states, political subdivisions of a State, tribal governments, technology companies, electric utilities, utility cooperatives, public utility districts, telecommunications companies, telecommunications cooperatives, nonprofit foundations, nonprofit corporations, nonprofit institutions, nonprofit associations, regional planning councils, Native entities, or economic development authorities.