USDA to Make $550 Million in Funding Available in 2020 to Deploy High-Speed Broadband Internet Infrastructure in Rural America

Announcement Made at Round One Investment in Iowa

STANTON, Iowa, Dec. 12, 2019 – RealEstateRama – U.S. Secretary of Agriculture Sonny Perdue today announced the availability of a second round of $550 million in United States Department of Agriculture (USDA) Reconnect Pilot Program funding appropriated by Congress. The application window for this round of funding is set to open Jan. 31, 2020. Secretary Perdue made the announcement alongside Iowa Gov. Kim Reynolds while congratulating the Farmers Mutual Telephone Company of Stanton, Iowa, for receiving $6.4 million in first-round Reconnect Pilot Program funding to connect 477 households, 35 farms and 21 businesses in Montgomery and Page counties.

“This second round of ReConnect funding will help USDA be an even stronger partner in closing the digital divide in America’s rural communities,” Secretary Perdue said. “Our core mission at USDA is to increase rural prosperity through boosting economic opportunity in rural America. We know that rural communities need robust, modern infrastructure to thrive, and that includes having access to broadband e-Connectivity. Under the leadership of President Trump and in cooperation with Congressional appropriators, USDA is proud to partner with rural communities to deploy this critical infrastructure, because we know when rural America thrives, all of America thrives.”

Gov. Reynolds added, “Iowa is home to creative entrepreneurs who are driving technological innovation across the heartland. By leveraging local, state and federal resources, we are investing like never before in broadband connectivity and sparking revitalization across rural Iowa. I appreciate Secretary Perdue for being here today to represent the Trump Administration’s unwavering commitment to growing all aspects of rural America.”

Second Round Highlights:

USDA will make available up to $200 million for grants, up to $200 million for 50/50 grant/loan combinations, and up to $200 million for low-interest loans. The application window for this round of funding will open Jan. 31, 2020. Applications for all funding products will be accepted in the same application window, which will close no later than March 16, 2020.

A full description of 2020 ReConnect Pilot Program funding is available on page 67913 of the Dec. 12, 2019, Federal Register (PDF, 336 KB). To learn more about eligibility, technical assistance and recent announcements, visit www.usda.gov/reconnect.

Additional Background:

In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. On Dec. 13, 2018, Secretary Perdue announced the rules of the program, called “ReConnect,” including how the loans and grants will be awarded to help build broadband infrastructure in rural America. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect Program funding products: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. To date, USDA has awarded $191 million through the ReConnect program with offers out to 47 additional potential recipients totaling more than $600 million in investments. Additional investments in all three categories will be made in the coming weeks.

These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. Insufficient service is defined as connection speeds of less than 10 megabits per second (Mbps) download and 1 Mbps upload.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force. To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.

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