USDA Reconnect Program now accepting applications for $1B in grants
U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is now accepting applications for ReConnect Program loans and grants to expand access to high-speed internet for millions of people in rural America nationwide. The Department is making more than $1 billion available, thanks to President Biden’s Bipartisan Infrastructure Law. The program is a critical piece of the Biden-Harris Administration’s commitment to connect every American to affordable, reliable, high-speed internet.
“Ensuring that the people of rural America are connected with reliable, high-speed internet brings new and innovative ideas to the rest of our country, and it remains a core priority for President Biden,” Vilsack said. “That’s why high-speed internet is an important part of USDA Rural Development’s work with rural communities. Reliable high-speed internet opens the world’s marketplace to rural business owners. It enables them to expand their businesses and give more jobs and opportunities to people in their own community.”
On Sept. 6, USDA began accepting applications for loans, with available funds of $150 million, grants with available funds of $700 million, and combination loan/grant awards using $300 million under the ReConnect Program. These funds were appropriated under the Bipartisan Infrastructure Law, also known as the Infrastructure Investment and Jobs Act. Governmentwide, the law provides an historic $65 billion investment to expand affordable, high-speed internet to all communities across the U.S.
The application deadline is Nov. 2. For additional information, see page 47690 of the Aug. 4 Federal Register.
USDA has made several improvements to the ReConnect Program for the current round of applications. Collectively, these improvements increase the availability of funding in rural areas where residents and businesses lack access to affordable, high-speed internet. They include:
- Allowing applicants to serve areas where at least 50% of households lack sufficient access to high-speed internet.
- Adding a funding category for projects where 90% of households lack sufficient access to high-speed internet. For applications submitted under this category, no matching funds will be required.
- Waiving the matching funds requirement for: (a) Alaska Native Corporations, (b) Tribal Governments, (c) projects proposing to provide service in colonias, (d) projects proposing to serve persistent poverty counties and (e) projects proposing to provide service in socially vulnerable communities.
Additionally, to ensure that rural households in need of internet service can afford it, all awardees under this funding round will be required to apply to participate in the Bipartisan Infrastructure Law’s Affordable Connectivity Program (ACP). The ACP offers a discount of up to $30 per month towards internet service to qualifying low-income households and up to $75 per month for households on qualifying Tribal Lands. As a result, ACP-eligible households can receive internet at no cost and can sign up and check their eligibility at GetInternet.gov. The Department’s actions to expand high-speed internet access in rural areas are key components of the Biden-Harris Administration’s efforts to help America build back better in its recovery from the COVID-19 pandemic.
In the first round of the ReConnect Program, USDA invested $656 million to create or improve high-speed internet access for rural customers across 33 states and territories. In the second round of the ReConnect Program, USDA invested $850 million to create or improve high-speed internet access for rural customers across 37 states and territories. To date, USDA has announced $356 million in critical investments through the third round of ReConnect funding, for a total of $1.8 billion invested through the ReConnect Program since the program’s inception. More investments will be announced in the coming weeks.
Background: ReConnect Program
To be eligible for ReConnect Program funding, an applicant must serve an area where high-speed internet service is not available at speeds of 100 megabits per second (Mbps) (download) and 20 Mbps (upload). The applicant must also commit to building facilities capable of providing high-speed internet service at speeds of 100 Mbps (download and upload) to every location in its proposed service area.
Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.