The economic stimulus bill to be signed by President Obama today will provide $7.2 billion for broadband deployment. Because the purpose of the law is to provide early stimulus to the economy, grants will be awarded on an accelerated schedule, and should be of interest to those in the broadband and telecommunications industries, utilities, school districts, local governments, nonprofit organizations and firms that finance broadband ventures.

Under a program administered by Department of Commerce, $4.7 billion in grants will be awarded to entities that will deliver broadband access, equipment and support to schools, libraries, healthcare providers, institutions of higher education, and other community support organizations. States, counties, cities and towns, school districts, and nonprofit organizations are eligible to apply for the grants along with traditional and new service providers. Except in instances of demonstrated financial need, programs will be funded up to 80 percent of their total cost. Private financing may play a role in funding the remaining 20 percent of costs.

A separate program administered by the Rural Utilities Service of the Department of Agriculture will award $2.5 billion in grants, loans and loan guarantees for broadband infrastructure.  Entities that already have borrowed from the Rural Utilities Service to provide telephone service to rural areas, or projects involving those entities, will have priority. A summary of these programs can be found here.

Entities eligible for funding through either program may find it beneficial to team with private corporations and financial companies in order to develop their broadband plans. 

Applications for funding will be due soon after the bill becomes law, and agencies overseeing the grant program are already developing application forms and processes. Bracewell & Giuliani is actively monitoring these broadband funding opportunities. If you require more information about these programs please do not hesitate to contact us.