By David Shepardson

WASHINGTON (Reuters), – U.S. Commerce secretary Gina Raimondo detailed Tuesday her plans to spend $65 Billion to increase broadband access. It is a key part of Biden’s proposed infrastructure bill.

Authors of the bill claim that 19 million Americans don’t have high-speed Internet access. Raimondo explained that the Administration’s aim is to make high-speed internet affordable and accessible to all Americans.

It includes $42.45 trillion in grants to increase physical access to broadband. This could include building fiber and other networks.

This bill will award $100 million per state to technical assistance. It can also be used to create a state broadband office.

Raimondo’s agency will allocate the remaining $42 billion to states through a formula-based grant programme. All recipients must also offer low-cost plans.

Raimondo stated, “Show us an affordable plan that will guarantee everyone in your state access to high-speed internet at an affordable price.” All projects must reach a speed of at least 100/20 megabits/second

According to her, it could take months before money is sent to the states. The department will approve plans submitted by states.

Every recipient must provide a plan with low costs. Before funding is granted, states need to address their unseen areas. Raimondo explained that it is important to avoid overbuilding.

She stressed the fact that Americans will not immediately see these spending dollars in their neighborhoods. We want this to be right. It is important not to rush …. This doesn’t guarantee everyone will have broadband within a year.

Biden initially proposed $100 billion for broadband and the White House conceded in May https://www.reuters.com/technology/white-house-would-back-smaller-broadband-internet-boost-2021-05-21/#:~:text=President%20Joe%20Biden%20in%20April%20called%20for%20%24100,said%20Friday%20in%20a%20memo%20to%20Senate%20Republicans that with $65 billion, it would take longer to extend access to all Americans.

AT&T (NYSE:) CEO John Stankey said the government funds will pave the way “for universal connectivity to unserved areas, making broadband affordable for low-income households, and providing more resources for digital equity and adoption.” 

Comcast (NASDAQ) stated that the funding is appropriate and will be used to “get broadband infrastructure first into areas where it doesn’t currently exist while continuing to promote faster speeds, disincentivizing duplicate projects.”

BROADBAND – MORE ACCESSIBLE

New infrastructure legislation also provides $14.2 billion to the Federal Communications Commission for a permanent $30 per-month voucher to low-income families for any internet service plan they choose.

The new program expands upon the $3.2 billion temporary COVID-19 panademic program, called Emergency Broadband Benefit. It provides a $50 per month subsidy and is used by almost 7.4 million households in America. This new program allows more households with low income to apply.

Pew Research’s survey of this year revealed that low-income and minority households have lower chances of having home internet. The survey found that less than 60% adults earning below $30,000 annually have access to home internet.

Raimondo pledged transparency when the government spends billions of dollars earmarked for it. She stated that “every single state plan will have to go online so you can look through each detail.”