Members of the United States Senate, 110th Congress (2007)
Source: Senate Photo Studio

The Committee recommends a total of $9,000,000,000 for the Broadband Technology Opportunities Program, which is authorized by section 201 of this act. Broadband capabilities drive innovation and job creation. Yet the United States ranks 15th among Organization for Economic Cooperation and Development [OECD] nations in per capita broadband use. The Committee expects that this one-time appropriation will make a significant down payment on increasing the availability of and access to broadband nationwide, which will better position the United States for economic growth, innovation, and job creation.

Funding is provided for the National Telecommunications and Information Administration [NTIA] to award competitive grants to State and local governments, nonprofits, and public-private partnerships to: (1) accelerate broadband deployment in unserved and underserved areas and to strategic institutions that are likely to create jobs or provide significant public benefits (up to $8,190,000,000); (2) increase sustained broadband adoption (not less than $250,000,000); (3) upgrade technology and capacity at public computing centers, which are a key source of access to the Internet for lower income users, such as libraries and community colleges (not less than $200,000,000); (4) develop and maintain a broadband inventory map of current broadband deployment across the United States as authorized by the Broadband Data Improvement Act (Public Law 110-385) (up to $350,000,000); and (5) conduct audits and oversight of grants and other funding under this section ($10,000,000).

Bill language requires that 50 percent of the funds under this program be spent on projects in rural areas, and any portion of such funds may be transferred to the Department of Agriculture for administration through the Rural Utilities Service [RUS] if deemed necessary and appropriate by the Secretary of Commerce, in consultation with the Secretary of Agriculture. Bill language also: allows funds to be transferred to the Federal Communications Commission [FCC] for the purposes of developing a national broadband plan and for other FCC responsibilities under section 201; limits administrative costs of the program to not more than 3 percent; and transfers $10,000,000 to the Inspector General for audits and oversight of the program.

To maximize the public benefits of this significant public investment, section 201 gives NTIA the authority to impose grant conditions with regard to interconnection and nondiscrimination requirements that apply to facilities funded in part by this appropriation, regardless of who operates those facilities.

The Committee expects that competitive grants for broadband deployment will enable both wireline and wireless broadband projects in unserved and underserved areas, and that funds will be spent constructing and deploying facilities and services for projects that: can commence promptly; and will enable connections within economic development zones, and to community facilities such as healthcare facilities, public safety facilities, public schools, community colleges, public libraries, and other strategic community facilities.

The Committee also intends that the NTIA and any other entity-dispensing funds under this program do so in a timely fashion, while employing strong safeguards so that funds are spent effectively to increase broadband adoption, employment, and other community benefits. Toward that end, section 201: (1) imposes a 20 percent match requirement for grants, which may be satisfied by the grant applicant or any third-party partnering with the grant applicant, and may be waived only under special circumstances; (2) requires specific commitments from grantees on scheduled progress for meeting the goals of the grant; (3) requires that grant applications show that the proposed broadband deployment would not occur during the grant period without this Federal investment; (4) requires quarterly reporting by any entity receiving funds regarding how funds are spent and progress meeting the schedule, as well as quarterly reporting to Congress by Federal agencies making grants regarding how funds are being spent; (5) requires strong public transparency regarding how funds are spent under the program and grantees' progress fulfilling specific commitments to deploy facilities, increase broadband adoption or deploy computer infrastructure; and (6) empowers the NTIA to revoke funding in any case of misspending, and to recapture funds in certain circumstances.