47 USC 1705 - Grants for broadband connectivity

View all text of Subchapter I [§ 1701 - § 1705]

§ 1705. Grants for broadband connectivity

(a) DefinitionsIn this section:

(1) Assistant Secretary

(2) Broadband or broadband service.—

(3) Commission

(4) Covered broadband project

(5) Covered partnershipThe term “covered partnership” means a partnership between—

(A) a State, or 1 or more political subdivisions of a State; and

(B) a provider of fixed broadband service.

(6) Department

(7) Eligible service areaThe term “eligible service area” means a census block in which broadband service is not available at 1 or more households or businesses in the census block, as determined by the Assistant Secretary on the basis of—

(A) the maps created under section 802(c)(1) of the Communications Act of 1934 (47 U.S.C. 642(c)(1)); or

(B) if the maps described in subparagraph (A) are not available, the most recent information available to the Assistant Secretary, including information provided by the Commission.

(8) Eligible entityThe term “eligible entity” means—

(A) a Tribal Government;

(B) a Tribal College or University;

(C) the Department of Hawaiian Home Lands on behalf of the Native Hawaiian Community, including Native Hawaiian Education Programs;

(D) a Tribal organization; or

(E) a Native Corporation.

(9) Native Corporation

(10) Native Hawaiian

(11) Qualifying broadband serviceThe term “qualifying broadband service” means broadband service with—

(A) a download speed of not less than 25 megabits per second;

(B) an upload speed of not less than 3 megabits per second; and

(12) Tribal Government

(13) Tribal landThe term “Tribal land” means—

(A) any land located within the boundaries of—

(i) an Indian reservation, pueblo, or rancheria; or

(ii) a former reservation within Oklahoma;

(B) any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held—

(i) in trust by the United States for the benefit of an Indian Tribe or an individual Indian;

(ii) by an Indian Tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or

(iii) by a dependent Indian community;

(D) Hawaiian Home Lands, as defined in section 4221 of title 25; or

(E) those areas or communities designated by the Assistant Secretary of Indian Affairs of the Department of the Interior that are near, adjacent, or contiguous to reservations where financial assistance and social service programs are provided to Indians because of their status as Indians.

(14) UnservedThe term “unserved”, with respect to a household, means—

(A) the household lacks access to qualifying broadband service; and

(B) no broadband provider has been selected to receive, or is otherwise receiving, Federal or State funding subject to enforceable build out commitments to deploy qualifying broadband service in the specific area where the household is located by dates certain, even if such service is not yet available, provided that the Federal or State agency providing the funding has not deemed the service provider to be in default of its buildout obligations under the applicable Federal or State program.

(b) Direct appropriationThere is appropriated to the Assistant Secretary, out of amounts in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2021, to remain available until expended—

(1) $1,000,000,000 for grants under subsection (c); and

(2) $300,000,000 for grants under subsection (d).

(1) Tribal broadband connectivity grantsThe Assistant Secretary shall use the funds made available under subsection (b)(1) to implement a program to make grants to eligible entities to expand access to and adoption of—

(A) broadband service on Tribal land; or

(B) remote learning, telework, or telehealth resources.

(2) Grants

(3) Allocations

(A) Equitable distribution

(B) Administrative expenses of Assistant Secretary

(4) Use of grant funds

(A) Commitment deadline

(i) In general

(ii) Reversion of funds

(B) Expenditure deadline

(i) In general

(ii) Extensions for infrastructure projectsThe Assistant Secretary may extend the period under clause (i) for an eligible entity that proposes to use the grant funds for construction of broadband infrastructure if the eligible entity certifies that—(I) the eligible entity has a plan for use of the grant funds;(II) the construction project is underway; or(III) extenuating circumstances require an extension of time to allow the project to be completed.

(iii) Extensions for other projects

(iv) Reversion of funds

(5) Eligible usesAn eligible entity may use grant funds made available under this subsection for—

(A) broadband infrastructure deployment, including support for the establishment of carrier-neutral submarine cable landing stations;

(B) affordable broadband programs, including—

(i) providing free or reduced-cost broadband service; and

(ii) preventing disconnection of existing broadband service;

(D) telehealth;

(E) digital inclusion efforts; and

(F) broadband adoption activities.

(6) Administrative expenses of eligible entities

(A) In general

(B) Broadband infrastructure projects

(7) Subgrantees

(A) In general

(B) RequirementsAn eligible entity that enters into a contract with a subgrantee for use of grant funds received under this subsection shall—

(i) before entering into the contract, after a reasonable investigation, make a determination that the subgrantee—(I) is capable of carrying out the project for which grant funds will be provided in a competent manner in compliance with all applicable laws;(II) has the financial capacity to meet the obligations of the project and the requirements of this subsection; and(III) has the technical and operational capability to carry out the project; and

(ii) stipulate in the contract reasonable provisions for recovery of funds for nonperformance.

(8) Broadband infrastructure deployment

(d) Broadband infrastructure program

(1) Broadband infrastructure deployment grants

(2) Mapping

(A) Data from commission

(B) Use by Assistant Secretary

(3) Eligibility requirementsTo be eligible for a grant under this subsection, a covered partnership shall submit an application at such time, in such manner, and containing such information as the Assistant Secretary may require, which application shall, at a minimum, include a description of—

(A) the covered partnership;

(B) the covered broadband project to be funded by the grant, including—

(i) the speed or speeds at which the covered partnership plans to offer broadband service; and

(ii) the cost of the project;

(C) the area to be served by the covered broadband project (in this paragraph referred to as the “proposed service area”);

(D) any support provided to the provider of broadband service that is part of the covered partnership through—

(i) any grant, loan, or loan guarantee provided by a State to the provider of broadband service for the deployment of broadband service in the proposed service area;

(ii) any grant, loan, or loan guarantee with respect to the proposed service area provided by the Secretary of Agriculture—(I) under title VI of the Rural Electrification Act of 1936 (7 U.S.C. 950bb et seq.), including—(aa) any program to provide grants, loans, or loan guarantees under sections 601 through 603 of that Act (7 U.S.C. 950bb et seq.); and(bb) the Community Connect Grant Program established under section 604 of that Act (7 U.S.C. 950bb–3); or(II) the broadband loan and grant pilot program known as the “Rural eConnectivity Pilot Program” or the “ReConnect Program” authorized under section 779 of division A of the Consolidated Appropriations Act, 2018 (Public Law 115–141; 132 Stat. 348);

(iii) any high-cost universal service support provided under section 254 of the Communications Act of 1934 (47 U.S.C. 254);

(iv) any grant provided under section 1305 of this title;

(v) amounts made available for the Education Stabilization Fund under the span “DEPARTMENT OF EDUCATION” in title VIII of division B of the CARES Act (Public Law 116–136; 134 Stat. 564); or

(vi) any other grant, loan, or loan guarantee provided by the Federal Government for the provision of broadband service.

(4) PriorityIn awarding grants under this subsection, the Assistant Secretary shall give priority to applications for covered broadband projects as follows, in decreasing order of priority:

(A) Covered broadband projects designed to provide broadband service to the greatest number of households in an eligible service area.

(B) Covered broadband projects designed to provide broadband service in an eligible service area that is wholly within any area other than—

(i) a county, city, or town that has a population of more than 50,000 inhabitants; and

(ii) the urbanized area contiguous and adjacent to a city or town described in clause (i).

(C) Covered broadband projects that are the most cost-effective, prioritizing such projects in areas that are the most rural.

(D) Covered broadband projects designed to provide broadband service with a download speed of not less than 100 megabits per second and an upload speed of not less than 20 megabits per second.

(E) Any other covered broadband project that meets the requirements of this subsection.

(5) Expenditure deadline

(A) In general

(B) ExtensionsThe Assistant Secretary may extend the period under subparagraph (A) for a covered partnership that proposes to use the grant funds for construction of broadband infrastructure if the covered partnership certifies that—

(i) the covered partnership has a plan for use of the grant funds;

(ii) the construction project is underway; or

(iii) extenuating circumstances require an extension of time to allow the project to be completed.

(6) Grant conditions

(A) ProhibitionsAs a condition of receiving a grant under this subsection, the Assistant Secretary shall prohibit a provider of broadband service that is part of a covered partnership receiving the grant—

(i) from using the grant amounts to repay, or make any other payment relating to, a loan made by any public or private lender;

(ii) from using grant amounts as collateral for a loan made by any public or private lender; and

(iii) from using more than $50,000 of the grant amounts to pay for the preparation of the grant.

(B) Nondiscrimination

(e) Implementation

(1) Requirements; outreachNot earlier than 30 days, and not later than 60 days, after December 27, 2020, the Assistant Secretary shall—

(A) issue a notice inviting eligible entities and covered partnerships to submit applications for grants under this section, which shall contain details about how awarding decisions will be made; and

(B) outline—

(i) the requirements for applications for grants under this section; and

(ii) the allowed uses of grant funds awarded under this section.

(2) Applications

(A) Submission

(B) Processing

(i) In general

(ii) DenialThe Assistant Secretary may deny an application submitted under subparagraph (A) only if—(I) the Assistant Secretary provides the applicant an opportunity to cure any defects in the application; and(II) after receiving the opportunity under subclause (I), the applicant still fails to meet the requirements of this section.

(D) Proposed use of funds

(E) Allocation of funds

(F) Treatment of unallocated funds

(i) In generalIf an eligible entity or covered partnership does not submit an application by the deadline under subparagraph (A), or the Assistant Secretary does not approve an application submitted by an eligible entity or a covered partnership under that subparagraph, the Assistant Secretary shall make the amounts allocated for, as applicable—(I) the eligible entity under subsection (c) available to other eligible entities on an equitable basis; or(II) the covered partnership under subsection (d) to other covered partnerships.

(ii) Second process

(3) Transparency, accountability, and oversight requiredIn implementing this section, the Assistant Secretary shall adopt measures, including audit requirements, to—

(A) ensure sufficient transparency, accountability, and oversight to provide the public with information regarding the award and use of grant funds under this section;

(B) ensure that a recipient of a grant under this section uses the grant funds in compliance with the requirements of this section and the overall purpose of the applicable grant program under this section; and

(4) Prohibition on use for covered communications equipment or services

(5) Unauthorized use of funds

(6) Additional appropriations for Tribal Broadband Connectivity Program

(A) DefinitionIn this paragraph, the term “initial round of funding”—

(i) means the allocation under paragraph (2)(E) of funds appropriated under subsection (b)(1); and

(ii) does not include any reallocation of funds under paragraph (2)(F).

(B) New fundingIf Congress appropriates additional funds for grants under subsection (c) after the date of enactment of this Act, the Assistant Secretary—

(i) may use a portion of the funds to fully fund any grants under that subsection for which the Assistant Secretary received an application and which the Assistant Secretary did not fully fund during the initial round of funding; and

(ii) shall allocate any remaining funds through subsequent funding rounds consistent with the requirements of this section, except as provided in subparagraph (C) of this paragraph.

(C) ExceptionsIf Congress appropriates additional funds for grants under subsection (c) after the date of enactment of this Act—

(i) the Assistant Secretary shall not be required to issue an additional notice under paragraph (1) of this subsection, but shall inform eligible entities that additional funding has been made available for grants under subsection (c) and describe the changes made to the Tribal Broadband Connectivity Program under that subsection by section 60201 of the Infrastructure Investment and Jobs Act;

(ii) the requirement under paragraph (2)(C) of this subsection shall be applied individually to each round of funding for grants under subsection (c);

(iii) paragraph (2)(A) of this subsection shall be applied by substituting “180-day period beginning on the date on which the Assistant Secretary informs eligible entities that additional funding has been made available for grants under subsection (c)” for “90-day period beginning on the date on which the Assistant Secretary issues the notice under paragraph (1)”; and

(iv) notwithstanding paragraph (2)(F) of this subsection, in the case of funds appropriated under subsection (b)(1) that were not allocated during the initial round of funding, the Assistant Secretary may elect to allocate the funds during any subsequent round of funding for grants under subsection (c).

(f) Reporting

(1) Eligible entities and covered partnerships

(A) Annual reportNot later than 1 year after receiving grant funds under this section, and annually thereafter until the funds have been expended, an eligible entity or covered partnership shall submit to the Assistant Secretary a report, with respect to the 1-year period immediately preceding the report date, that—

(i) describes how the eligible entity or covered partnership expended the funds;

(ii) certifies that the eligible entity or covered partnership complied with the requirements of this section and with any additional reporting requirements prescribed by the Assistant Secretary, including—(I) a description of each service provided with the grant funds; and(II) the number of locations or geographic areas at which broadband service was provided using the grant funds; and

(iii) identifies each subgrantee that received a subgrant from the eligible entity or covered partnership and a description of the specific project for which grant funds were provided.

(B) Provision of information to FCC and USDA

(2) Inspector General and GAO

(g) Impact on other Federal broadband programs

(Pub. L. 116–260, div. N, title IX, § 905, Dec. 27, 2020, 134 Stat. 2136; Pub. L. 117–58, div. F, title II, § 60201, Nov. 15, 2021, 135 Stat. 1208.)