USDA issues biggest batch of broadband money

The Rural Utilities Service of the Department of Agriculture today issued the largest batch yet of economic-stimulus grants and loans for rural broadband, totaling $310 million. The largest allocation was $88.1 million in a loan and grant "to an Alaskan telecommunications company that will build 'middle mile' networks to connect 65 towns and villages in southwestern Alaska to the Internet," Joelle Tessler of The Associated Press reports. Today's projects are also in Alabama, California, Iowa, Kansas, Louisiana, Missouri, North Dakota, Oregon, Virginia and Tennessee (a project that will serve a few customers in Kentucky). For the full list and a USDA news release, click here.

So far RUS, the successor to the old Rural Electrification Administration, has issued $363.7 million for 22 broadband projects. It is scheduled to award $2.5 billion in stimulus money for broadband. "The National Telecommunications and Information Administration, an arm of the Commerce Department, is handing out the remaining $4.7 billion in stimulus funding for broadband. As of last week, NTIA had awarded roughly $200 million in grants for 15 projects," Tessler notes. "Applications for the next and final round of broadband funding are due by March 15. In the second round, the Agriculture Department will focus on projects that provide 'last-mile' connections that link homes, businesses and other end users to the Internet. The Commerce Department will focus on 'middle-mile' projects that connect anchor institutions such as libraries, colleges and public safety agencies."

Tessler concluded, "Demand for the broadband money has been intense, far outstripping the amount available. The Commerce and Agriculture departments already have received nearly 2,200 applications requesting a total of $28 billion." (Read more)