Editor’s note: The Senate passed the Infrastructure and Investment Jobs Act on Aug. 10, 2021. This article has been updated to reflect the final amendments and new information on next steps for the legislation.
In a previous article, SSTI detailed the limitations of public funding in solving the country’s rural broadband issue. While increased public funding is certainly part of the equation to bring internet capabilities to the near 14 million people who do not have access, there is potential to leverage new innovative technologies to bridge the broadband gap across America.
As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states.
While the new administration is rolling out a new infrastructure proposal that includes $100 billion over an 8-year period for greater broadband coverage and affordability, the states have been busy in 2021 with their own broadband proposals. Governors across the country are responding to the digital divide that became even more obvious during the pandemic as students struggled to access online learning, individuals turned to the internet for telehealth appointments, and much of the workforce pivoted to remote work arrangements.
As noted in our separate overview, the 25-page American Jobs Plan provides goals, highlights and proposals, but also raises questions about how proposals would be implemented and even exactly how much money would be spent.
The Federal Communications Commission (FCC) estimates that nearly one-fourth of the rural population —14.5 million people — lack access to broadband services. In tribal areas, nearly one-third of the population lacks access. Even in areas where broadband is available, approximately 100 million Americans still do not subscribe to services.
Several more State of the State addresses were delivered already this month, leaving just a few states yet to go and the pandemic and recovery from the pandemic, not surprisingly, continue to feature heavily in governors’ plans. Energy opportunities, tax cuts, broadband and shifts in the model for higher education are in play in this week’s review of addresses from California, Florida, New Hampshire and Wyoming.
As governors continue to roll out their State-of-the State addresses in the month of February, we continue to see a heavy focus on recovering from the pandemic. Given most state’s fiscal condition, governors have been generally hesitant to roll out new initiatives during this time, although broadband continues to receive attention, especially with the renewed attention surrounding its importance during the pandemic.
The relief bill passed last night falls short of assisting states that face strains on their budgets and increasing demand for assistance from their constituents. However, the bill does provide $900 billion for the first broad COVID-19 relief package to pass since the CARES Act was signed into law on March 27th. The major items in this legislation are the extension of unemployment insurance benefits, direct payments to individuals, and a new round of loans through a modified Paycheck Protection Program.
Over 5.2 million homes and businesses are now planned to receive broadband internet access through the Federal Communications Commission’s Rural Digital Opportunity Fund.