American Rescue Plan Act – Section 603

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The American Rescue Plan Act § 602 provides a total of $350 billion to eligible states, territories, and tribal governments. Funds are available until 2024 and are to be used for “necessary investments” in “water, sewer, broadband infrastructure.”

Of that $350 billion, the total allocated to Missouri is $5.475 billion (combining the allocations at the state level and allocations to cities, counties, and non-county jurisdictions). For guidance, refer to the issue-specific toolkits developed by Missouri state agencies for local governments to use in considering investments for their communities with American Rescue Plan Act (“ARPA”) local fiscal recovery funding.

See the most recent FAQs provided by U.S. Treasury for more information.

The American Rescue Plan Act § 603 provides a total of $130.2 billion directly for broadband infrastructure for eligible municipalities and counties. Funds are available until December 2024. Funds must be used to make “necessary investments” in “water, sewer, and broadband infrastructure.”

The Broadband Infrastructure Grant Program

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NTIA’s Broadband Infrastructure Program was established by the Consolidated Appropriations Act, 2021. In the priority order defined by the Act, NTIA will accept applications for projects that are designed to:

  1. Provide broadband service to the greatest number of households in an eligible service area;
  2. Provide broadband service in an eligible service area that is wholly within any area other than a county, city, or town with more than 50,000 inhabitants and the urbanized area contiguous and adjacent to a city or town of more than 50,000 inhabitants;
  3. Be the most cost-effective, prioritizing such projects in areas that are the most rural;
  4. Provide broadband service with a download speed of at least 100 Mbps and an upload speed of at least 20 Mbps;
  5. Meet the requirements of this NOFO.

More information about the program, including requirements for grant applications, can be found in the Notice of Funding Opportunity. Applications closed on August 17, 2021. Due to the high number of applications, NTIA established these guidelines for review.

ReConnect Program

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The ReConnect Program offers unique federal financing and funding options in the form of loans, grants, and loan/grant combinations to facilitate broadband deployment in areas of rural America that don’t currently have sufficient access to broadband, defined by the law as 10 Mbps (megabits per second) downstream and 1 Mbps upstream.

This program will generate private sector investment to deploy broadband infrastructure to provide high-speed internet e-Connectivity to as many rural premises as possible, including homes, community facilities for healthcare and public safety, schools, libraries, farms, ranches, factories, and other production sites. The ReConnect program offers three products: 100% Loans, 50% Loan-50% Grant combinations, and 100% Grants.

The application window closed February 22, 2022. For more information, see the funding opportunity announcement.

Community Facilities Direct Loan & Grant Program

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This program provides affordable funding to develop essential community facilities in rural areas. An essential community facility is defined as a facility that provides an essential service to the local community for the orderly development of the community in a primarily rural area and does not include private, commercial, or business undertakings.

For more information, see the fact sheet. Applications are currently open.

Distance Learning and Telemedicine Grants

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The Distance Learning and Telemedicine program helps rural communities use the unique capabilities of telecommunications to connect to each other and to the world, overcoming the effects of remoteness and low population density. For example, this program can link teachers and medical service providers in one area to students and patients in another.

For more information, see the fact sheet. Applications closed June 4, 2021.

Telecommunications Infrastructure Loans & Loan Guarantees

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This program offers financial assistance to eligible broadband providers that will construct, improve, or expand telecommunication and broadband networks in rural areas. There are three types of available loans: Cost-of-Money loans are direct loans from USDA Rural Utilities Service; Loan Guarantees through the Federal Financing Bank (FFB); and Hardship loans from the USDA Rural Utilities Service. For more information, see the Program Fact Sheet.

Rural Economic Development Loan & Grant Program

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The Rural Economic Development Loan (REDL) and Grant (REDG) programs provide funding to rural projects through local utility organizations. Under the REDLoan program, USDA provides zero-interest loans to local utilities, which they, in turn, pass through to local businesses (ultimate recipients), for projects that will create and retain employment in rural areas. The ultimate recipients repay the lending utility directly. The utility is responsible for repayment to the Agency. 

Under the REDGrant program, USDA provides grant funds to local utility organizations to use the funding to establish revolving loan funds (RLF). Loans are made from the revolving loan funds to projects that will create or retain rural jobs. When the revolving loan fund is terminated, the grant is repaid to the Agency.