The US Department of Agriculture has announced $85.8 million in new funding to help shore up broadband connectivity gaps across rural America. According to the USDA announcement, the funding is comprised of $74.8 million in loans and $11 million in Community Connect grants. By and large this funding will be used in areas where the private sector has been reluctant or unable to invest because of a lower return on investment.
The USDA outlined several examples of where the loans and grants will be utilized.
Triangle Telephone Cooperative Association in Montana, for example, will use a $29.95 million loan to upgrade their regional system with fiber to expand and improve service. Virginia's Scott County Telephone Cooperative will receive $2.1 million in grant money to build a broadband network with one gigabyte of bandwidth for 540 locations in Dickenson County.
"Broadband is fundamental to expanding economic opportunity and job creation in rural areas, and it is as vital to rural America's future today as electricity was when USDA began bringing power to rural America 80 years ago," said Agriculture Secretary Tom Vilsack in a statement.
"The investments USDA is making today will deliver broadband to rural communities that are currently without high-speed internet service, or whose infrastructure needs to be upgraded. Improved connectivity means these communities can offer robust business services, expand access to health care and improve the quality of education in their schools, creating a sustainable and dynamic future those who live and work in rural America."