TMCnews Featured Article


November 10, 2009

NTIA and RUS to Issue Broadband Grants in Single Round of Funding

By Erin Harrison, Senior Editor


In an attempt to apparently increase efficiency and better accommodate applicants, the U.S. Rural Utilities Service and the Commerce Department’s National Telecommunications and Information Administration today announced they are streamlining the American Recovery and Reinvestment Act’s broadband grant and loan programs by awarding the remaining funding in just one more round, instead of two rounds.
 
RUS’s Broadband Initiatives Program and NTIA’s Broadband Technology Opportunities Program are intended to expand broadband access and adoption in America by creating jobs and stimulating long-term economic growth and opportunity, according to agency officials.
 
NTIA officials told TMCnet that it received almost 2,200 applications requesting nearly $28 billion in funding for proposed broadband projects reaching all 50 U.S. states, five territories, and the District of Columbia. NTIA Press Secretary Jessica Schafer said the department is “aiming” to announce the winning applicants in mid-December. Agency officials said by issuing the grants in one round of funding will bring “a number of benefits.” 

“NTIA and RUS decided to consolidate the remaining funding into one round in order to increase the efficiency of administering the programs,” Schafer said. “The RFI (News - Alert) is a critical part of this process, as we look forward to incorporating feedback on the first round into an improved process for the second round. In addition, this consolidated approach will allow potential applicants time to form partnerships and create strong project proposals.”
The agencies are currently reviewing these applications and expect to award up to $4 billion in loans, grants, and loan/grant combinations in this round.
 
According to Jonathan Adelstein, administrator of the RUS, the streamlined process will get the funds “out the door faster” to stimulate the economy and create jobs. 
 
“It gives applicants and communities a greater opportunity to come together to form networks and find more creative ways to connect to the global economy through broadband.  We are listening to applicants, reviewing applications received, and all indications suggest a need to revisit the application process,” Adelstein said. “We will consider changes in the next NOFA to make the process more applicant-friendly from beginning to end.”
 
The agencies also announced they are seeking public comment on how best to administer the second round of funding for the programs in order to improve the applicant experience and maximize the ability of the programs to meet Recovery Act objectives.
 
“Stakeholders will have the opportunity to provide us with well-informed feedback on how the first round worked for applicants, the agencies will be able to make improvements to the process, and potential applicants will gain more time to form partnerships and create stronger project proposals. Ultimately, this approach can help us run the programs with increased efficiency and produce better results for the American public,” Strickling said. 
 
In a request for information released today, the agencies are seeking feedback on procedural and policy aspects of BIP and BTOP. While inviting general input on the programs, the agencies identified specific areas for comment.
 
In terms of procedural matters, for example, the RFI (News - Alert) seeks input on ways to streamline the application process while still ensuring that the agencies obtain the information necessary to make awards in accordance with statutory requirements.  The RFI also asks whether the agencies can better balance the public’s interest in transparency and openness with stakeholders’ legitimate interest in maintaining the confidentiality of proprietary data. 
 
RUS and NTIA will utilize the feedback received in response to the RFI to set the rules for the second funding round, which the agencies expect to announce through a Notice of Funds Availability early next year.
 
The American Recovery and Reinvestment Act provided a total of $7.2 billion to NTIA and RUS to fund projects that will expand access to and adoption of broadband services. Of that funding, NTIA will utilize $4.7 billion for grants to deploy broadband infrastructure in unserved and underserved areas in the U.S., expand public computer center capacity and encourage sustainable adoption of broadband service.
 
As TMCnet recently reported, applications from the controversial ACORN Institute, a group that uses research and training to address the problems in low-income communities identified through years of community organizing, has been deemed “ineligible for funding” by the Commerce Department’s National Telecommunications and Information Administration.
 
According to a White House memo from Oct. 7 to executive branch agencies, guidance issued by the Office of Management and Budget cut off funding to the Association of Community Organizations for Reform Now, or any of its affiliates, subsidiaries or allied organizations.

Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's print publications, including "Internet Telephony", "Customer Interaction Solutions", "Unified Communications (News - Alert)" and "NGN" magazines. Erin also oversees production of TMCnet's weekly iPhone e-Newsletter. To read more of Erin's articles, please visit her columnist page.

Edited by Erin Harrison