Rural Broadband Modernization Act
Sponsored By: Representative Feenstra
Introduced
Summary
A federal rural broadband program to fund buildout and upgrades. This bill would create a grant, loan, and loan‑guarantee program under the Rural Electrification Act to bring at least 100/20 Mbps service to rural households, with a five‑year buildout goal and technology‑neutral award rules.
Show full summary
- Families and households: Rural households in funded areas would get a minimum of 100 Mbps downstream and 20 Mbps upstream delivered to each household in the proposed service area, with buildout expected within five years.
- Small communities and tribes: States, local governments, and Indian tribes can apply and projects serving places under 10,000 people, high‑poverty areas, and communities with outmigration get priority.
- Providers and finance terms: Grants may cover up to 75% of project costs and development costs can be fully covered in very low‑density places. Loans can have terms up to 35 years and the program caps large recipients to prevent any single entity from taking more than 15% of annual funds.
*Would authorize up to $500 million per year for fiscal years 2026–2030 to fund grants, loans, and loan guarantees for rural broadband.*
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 4 benefits, 0 costs, 3 mixed.
Five-year funding and help for applicants
The bill would authorize up to $500 million each year for FY2026 through FY2030 for this program. Money would stay available until spent. Each year, 3% to 5% would fund technical help and training for priority applicants.
New rural broadband buildout rules
The bill would create a rural broadband program starting October 1, 2025. Projects would need to deliver at least 100 Mbps download and 100 Mbps upload to each rural home, unless the Secretary sets a higher target. Awardees would have 5 years to finish, and the Secretary could allow substitute standards where costs are too high. The program would be technology neutral and reviewed at least every 2 years. Top priority would go to places with no 25/3 service, then to projects that reach the most homes, and to experienced rural providers.
Loan and guarantee rules for projects
Loans or guarantees would be limited to projects where at least 50% of locations are unserved or below the minimum speed. The Secretary could require matching funds up to 10% of the request. If you expect more than 20% of the local market, you could be asked for a market survey. Loan funds would be reserved by State based on the number of very small communities (2,500 people or fewer), and unused State shares after April 1 would be available nationwide. The Secretary would consider recurring revenues and could reduce collateral needs in areas with no broadband.
Grant rules and share limits
Grants would go only to areas where at least 90% of households lack 100/20 Mbps service. Grants would usually cover no more than 75% of a project’s total cost. In very sparse areas (under 7 households per square mile), the Secretary could cover 100% of development costs. Projects could not receive these grants at the same time as other federal or State broadband grants.
Cheaper, longer loans and payment relief
Direct loans could carry either the Treasury borrowing rate for a similar term or 4%, as set by the Secretary. Guaranteed loans would use the market rate, and terms could be up to 35 years if the loan is secure. The Secretary could also offer loans that pause principal and interest while you meet agreed milestones, with small payments if required. You could not get that payment‑assistance loan if you also take a linked Title I or II loan tied to the same grant.
One application, 30-day decision
You could file one application that covers a grant and any linked loan. The Secretary would issue one decision. Applications would be approved or denied within 30 days after you submit them.
Fees on guaranteed broadband loans
The Secretary would charge lender fees on guaranteed loans to reduce taxpayer subsidy costs. Fees would have to match market practice and not block participation, but lenders could pass some costs on to borrowers.
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Sponsors & CoSponsors
Sponsor
Feenstra
IA • R
Cosponsors
Miller-Meeks
IA • R
Sponsored 5/8/2025
Bost
IL • R
Sponsored 5/8/2025
Rep. Stansbury, Melanie Ann [D-NM-1]
NM • D
Sponsored 5/8/2025
Rep. Case, Ed [D-HI-1]
HI • D
Sponsored 3/25/2026
Roll Call Votes
No roll call votes available for this bill.
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