US prepares to release US$45 billion for nationwide high-speed internet under US$1 trillion infrastructure package
- The Biden administration is releasing the first funds out of US$65 billion set aside to bring broadband internet to every US resident by 2028
- States will get funds to pursue their own plan to increase broadband accessibility, whether by laying fibre optic cable, building out Wi-Fi, or something else
The Biden administration is taking the first steps to release US$45 billion to ensure that every US resident has access to high-speed internet by roughly 2028, inviting governors and other leaders on Friday to start the application process.
Commerce Secretary Gina Raimondo is overseeing the distribution and said that universal access to broadband internet would be akin to the electrification of rural America during the 1930s, a recognition that the internet is a utility needed for US residents to function in today’s economy.
“There’s more than 30 million Americans who don’t have internet,” Raimondo said. “And in this day and age without high-speed internet, you can’t go to school, can’t go to the doctor, can’t do simple things. Think of how many times in a day you Google something or go online.”
The funding is part of the US$65 billion for broadband in the US$1 trillion infrastructure package that President Joe Biden signed into law last November. That bipartisan package is one of the policy achievements that the Democratic president is trying to sell to voters ahead of the midterm elections, though it’s unclear how much the message will resonate when much of the country is focused on high inflation, cultural differences and political identity.
Former president Donald Trump has dismissed the infrastructure spending as “fake” even though the broadband spending was one of his own priorities. His Agriculture Department said in 2020 that it had invested US$744 million on rural internet connectivity, a sum that was meaningful yet insufficient.
Raimondo is travelling to Durham, North Carolina. She’ll announce that governors can send their letters of intent to receive the broadband money, which comes from three programmes totalling US$45 billion. Each state would then get US$5 million to help it consult with residents and write its plan.
The Commerce Department recognises that internet needs vary by state. The money could be used to lay fibre optic cable, build out Wi-Fi hotspots or even reduce monthly charges in places where price is the main challenge. After the administration’s announcement Monday that it would provide a US$30 monthly subsidy to low-income households, Raimondo noted that states could use the additional money from these programmes to make the service free to some users.