Your Ultimate Guide to Government Funding Opportunities for Broadband Infrastructure Projects
What’s the difference between CPF and IIJA? If you’re an operator in the business of broadband infrastructure and you don’t know, this explainer is for you. $97 billion has been pledged to assist operators in the construction of networks where internet connectivity is lacking (under the minimum thresholds of 100 Mbps upstream and 20 Mbps downstream) or non-existent.
But how is this money being allocated and by whom? Keep reading to find out…
There are over a hundred federal programs with funding opportunities related to broadband infrastructure. Depending on the program and government agency involved, grants are available for funding broadband for rural healthcare, rural community broadband planning, digital equity, remote learning and bridging the digital divide in education, and workforce training.
But the biggest and brightest funding opportunities appear in just a handful of programs passed as part of the U.S. Congress’ response to the Covid pandemic. $97 billion in funding for broadband infrastructure will be distributed over the next five years.
Here is a list of acronyms of the broadband infrastructure funding programs and agencies:
- ACP: Affordable Connectivity Program
- ARPA: American Rescue Plan Act
- BEAD: Broadband Equity Access and Deployment Program
- CPF: Capital Projects Fund funded by ARPA
- FCC: Federal Communications Commission
- IIJA: Infrastructure Investment and Jobs Act
- NTIA: National Telecommunications & Information Administration
- RDOF: Rural Digital Opportunities Fund
- USDA: United States Department of Agriculture
Broadband Infrastructure Funding Programs
Let’s take a brief glance at the breakdown of funding for broadband infrastructure by program and agency:
| Program | Agency | Amount |
| RDOF | FCC | $20 Billion |
| Middle Mile Program | NTIA | $1 Billion |
| Tribal Broadband Connectivity | NTIA | $1.98 Billion |
| BEAD | NTIA | $42.5 Billion |
| CPF | Treasury | $10 Billion |
| ARPA | Treasury | $20 Billion |
| ReConnect Round 4 | USDA | $1.15 Billion |
| Grand Total | $97 Billion |
FCC Role in Determining Maps for Broadband Infrastructure Development
Before we examine these federally funded broadband infrastructure programs in detail, it’s important to understand the role the FCC is playing in the collection of data to determine whether an area is eligible for funding.
When the U.S. Congress passed the Broadband DATA Act in March of 2020, they required that the FCC establish a process for collecting data from broadband providers to create coverage maps for all residences and businesses in the United States. These new maps will replace the bi-annual broadband provider availability reporting referred to as “477 data.”
These new maps are currently in development. Service providers must submit location specific coverage data by September 1st, 2022. While we don’t yet know when the final version of the maps will be available, we expect that it will be sometime in the fall of 2022.
FCC Programs
Affordable Connectivity Program (ACP)
Enacted by the FCC, the Affordable Connectivity Program (ACP) is a benefit program that helps to ensure every household can afford the broadband internet connection they require for work, school, healthcare, and more. Through the program, eligible households are provided with a discount of up to $30 per month for internet service. For households on Tribal lands, the discount may be as much as $75 per month. Additionally, eligible households can also receive a one-time discount of up to $100 toward the purchase of a qualifying device, such as a laptop, desktop computer, or tablet. The program is limited to one monthly service discount and one device discount per household.
Who Is Eligible for ACP Assistance?
To determine if a household is eligible for the Affordable Connectivity Program, the household income must be at or below 200% of the Federal Poverty Guidelines, or a member of the household must meet at least one of the criteria below:
- Received a Federal Pell Grant during the current award year;
- Meets the eligibility criteria for a participating provider’s existing low-income internet program;
- Participates in one of these assistance programs:
- Free and Reduced-Price School Lunch Program or School Breakfast Program, including at U.S. Department of Agriculture (USDA) Community Eligibility Provision schools.
- SNAP
- Medicaid
- Federal Housing Assistance, including:
- Housing Choice Voucher (HCV) Program (Section 8 Vouchers)
- Project-Based Rental Assistance (PBRA)/Section 202/ Section 811
- Public Housing
- Affordable Housing Programs for American Indians, Alaska Natives or Native Hawaiians
- Supplemental Security Income (SSI)
- WIC
- Veterans Pension or Survivor Benefits
- or Lifeline;
- Participates in one of these assistance programs and lives on Qualifying Tribal lands:
- Bureau of Indian Affairs General Assistance
- Tribal TANF
- Food Distribution Program on Indian Reservations
- Tribal Head Start (income based)
Rural Digital Opportunity Fund (RDOF) – $20 billion
The RDOF program is a reverse auction where the FCC will award census blocks to providers on the basis of the lowest submitted bids. The FCC has been authorized to spend up to $20 billion in funding through multiple rounds of auctions. Currently, they are still authorizing funding to Round 1 winners. Additional information on the Rural Digital Opportunity Fund is available here.
NTIA Programs
The Broadband Equity and Access and Deployment Program (BEAD) – $42.5 billion
BEAD, part of the Infrastructure Investment and Jobs Act (IIJA), will be administered by the NTIA, but it will be funded through the states. U.S. states will make BEAD funds available to localities, tribes, governments, service providers, and nonprofits.
There are several layers to the BEAD program. The amount of money allocated to each state will be determined by the number of unserved locations from the forthcoming FCC map (mentioned above). The NTIA and FCC will decide when the allocation can commence—expected in the late spring of 2023.
When the allocation date is set, states can begin to submit their plans to the NTIA for funding. Below is an overview of the states planning process:
- Action Plan – States that request money from NTIA will be required to submit a five-year Action Plan 270 days after receiving funds. States will receive planning money ($5 million per state) in September 2022.
- Initial Proposal – All states must submit an initial proposal to NTIA following the Allocation Date. They will have six months to complete this initial proposal. States’ initial proposals will be available for public review and challenge. If states’ initial proposals are accepted, the NTIA will release 20% of the funds allocated to each state based on their specific broadband needs.
- Final Proposal – States have a year to prepare and submit their final proposals. Once a State’s final proposal is approved, NTIA will release the remaining 80% of their allotment.
Any delays in the publication of the new FCC maps will push back the Allocation Date. The BEAD program has significant requirements for each state.
Click here for more information on the Broadband Equity, Access, and Deployment Program.
Digital Equity Act – $2.75 billion
This program, funded by the Infrastructure Investment and Jobs Act and administered by NTIA, establishes three grants, which will be administered by NTIA, to improve digital equity and inclusion. The three grants aim to provide communities with the resources to improve their connectivity and provide all residents with the “skills, technology, and capacity needed to reap the full benefits of our digital economy.”
The three grant programs are:
- State Digital Equity Planning Grant Program: A $60M formula grant program for states, territories, and tribal governments to develop digital equity plans.
- State Digital Equity Capacity Grant Program: A $1.44 billion formula grant program for states, territories, and tribal governments. It will fund an annual five-year grant program to support digital equity projects and the implementation of digital equity plans.
- Digital Equity Competitive Grant Program: A $1.25 billion grant program. It will fund annual five-year grant programs to implement digital equity projects.
You can learn more about this program here. Applications have closed as of January 17, 2023.
Middle Mile Program (MMP) – $1 billion
The MMP, which the Bipartisan Infrastructure Law funds, will be administered directly by the NTIA. The program aims to promote the expansion and extension of middle-mile infrastructure to reduce the cost of connecting unserved and underserved areas. Many different types of entities, including states, tribes, local governments, providers, nonprofits, and others, will be eligible for funding. For more information about the Middle Mile Program, click the link below.
The Middle Mile Program additional information.
The Tribal Broadband Connectivity Program (TBCP) – $1.98 billion
The TBCP is currently in process from NTIA, with eligibility currently confined to tribal governments. The TBCP delivers funding for broadband infrastructure deployments on tribal lands, as well as other projects that require reliable broadband connectivity: remote learning, telehealth, and digital inclusion.
Applications have closed as of September 1, 2022.
Treasury Programs
American Rescue Plan Act (ARPA) – $20 billion
Over $350 billion in funding was granted to the states in 2021. Part of these funds can be used toward investment in broadband infrastructure. As of this writing, nearly $20 billion of these funds are being used by states and localities for broadband infrastructure projects.
Capital Projects Fund (CPF) – $10 billion
As a part of the American Rescue Plan Act, the CPF will allocate $10 to the states for programs that count as part of the pandemic response. One important focus on this fund is broadband infrastructure, although monies from this program can also be used for other broadband projects.
For more information on the Capital Projects Fund, click the link here.
USDA Programs
ReConnect Round 4 – $1.15 Billion
Administered by the USDA, the Rural Development Broadband Program will consist of a combination of grants and loans to many entities. Applications will be accepted until November 2nd, 2022.
Learn more about this program >>
Infinity Technology Solutions for Broadband Infrastructure Projects
At Infinity Technology Solutions, we have experience assisting public and private entities in building fiber networks to make broadband internet access a reality for all U.S. citizens.
Contact us to learn more about how we can help you successfully launch your broadband infrastructure project.
