The Biden administration has committed $400 million to improving rural access to high-speed internet

Updated on July 29, 2022 12:14 PM by Ella Bina

$400 million in loans

Over $400 million in loans and grants will be sent to rural regions to assist high-speed internet projects, which would benefit roughly 31,000 households and companies in 11 states, according to the Biden administration on Thursday.

Country’s economy

"Even though rural areas are an important part of our country's fabric and play an important role in its economy, their efforts have gone unacknowledged for far too long.

We're here to change that, and the first step is to ensure that rural areas have access to fast, inexpensive internet "Mitch Landrieu, the White House's bipartisan infrastructure law coordinator, said to reporters on a conference call.

"Our administration is delivering more than $400 million in loans and grants to develop high-speed internet infrastructure in rural areas thanks to the efforts of President Obama, Agriculture Secretary Tom Vilsack, and the USDA Rural Development team. "

USDA ReConnect loan and grant programs

Many rural locations in the United States do not have access to high-speed, inexpensive internet because internet service providers do not see the value in establishing the infrastructure in these places.

Building, improving, and purchasing infrastructure and equipment to enhance rural broadband access are all part of the new projects that will be funded through USDA ReConnect loan and grant programs. Throughout the summer, further financial announcements are expected.

20 projects in 11 states

The $401 million in financing announced today will go to 20 projects in 11 states, including Alaska, Arizona, Arkansas, California, Colorado, Idaho, Montana, New Mexico, Nevada, North Dakota, and Texas, according to Vilsack.

Investment to help farmers

Connecting people to a better and more contemporary future is an opportunity that we will have over the next several months," he said, emphasizing how the investment will help farmers and improve access to telemedicine in distant places, as well as provide more options for distance learning.

Lovelock, Nevada

"$21.7 million that will go to improving internet connectivity in rural Lovelock, Nevada," Nevada Democratic Sen. Catherine Cortez Masto said during a conference call.

Approximately 4,000 individuals, 130 companies, 22 ranches, and seven public schools in rural Nevada would be connected to high-speed internet as a result of the initiative, she added.

The White House

The White House stated earlier this month that since the launch of GetInternet.gov in May, one million American families have signed up for broadband internet credits under the Affordable Connectivity Program.

30-month credit

There is a 30-month credit available to those who qualify, or a 75-month credit for those who live on Tribal grounds, under the program. According to government estimates, up to 40% of all American households qualify for the tax credit.

Thursday's statement is the administration's latest attempt to emphasize the progress made in infrastructure projects since President Joe Biden took office.

Affordable Connectivity Program

According to a provision of the massive bipartisan infrastructure bill passed last year, the Affordable Connectivity Program is financed by the federal government.

Infrastructure projects financed by the bipartisan measure like new roads and bridges will take some time to come to fruition because of the planning and approval processes and getting shovels in the ground. Because of that, the Affordable Connectivity Program is a critical victory for the administration ahead of November's midterm elections.

Rural broadband initiatives

The bipartisan infrastructure bill is likely to provide more financing for rural broadband initiatives in the next year.