USDA Promises Rural Internet Money It Doesn't Have Yet
Published Date: 1/10/2025
Notice
Summary
The USDA’s Rural Utilities Service is offering about $26 million in grants for 2025 to help rural communities build better broadband internet. If you live in or serve a rural area, you can apply starting February 20, but don’t wait—applications close April 21. This is your chance to bring faster, community-focused internet to places that need it most!
Analyzed Economic Effects
8 provisions identified: 4 benefits, 3 costs, 1 mixed.
Service Speed Requirement: 100/20 Mbps
Projects funded must provide broadband at the grant speed of 100 Mbps downstream and 20 Mbps upstream to all residential and business premises in the proposed funded service area (PFSA). The Agency will validate areas lacking service or having less than 10 Mbps/1 Mbps using the FCC Location Fabric dataset.
About $26M for Rural Broadband
The USDA's Rural Utilities Service estimates about $26,000,000 will be available in FY 2025 for Community Connect grants to build broadband in rural areas. Applications open February 20, 2025 and close April 21, 2025; awards are anticipated in September 2025 with performance periods of up to 3 years.
Free Access for Community Facilities & Centers
Awardees must offer free broadband at the grant speed to all participating Essential Community Facilities in the PFSA for at least 2 years. Awardees must also provide a Community Center with 2 to 10 public computer access points and wireless at the 100/20 Mbps speed free for at least 2 years; funds for community centers are limited to the lesser of 10% of the requested grant or $150,000.
Limits on Awards and Overlap Rules
Minimum Community Connect awards are $100,000 and maximum awards are $5,000,000. Proposed areas that overlap current RUS borrowers/grantees, areas with federal funding for terrestrial facilities providing at least 10/1 Mbps, or areas with an Enforceable Commitment are ineligible for CCG funds.
Matching, Reporting, and Audit Obligations
The program requires matching contributions per 7 CFR 1739.14. Awardees must submit annual project performance reports until completion, then annual performance reporting for three years after completion (including speeds, prices, subscriber counts), annual map updates within 30 days after year-end, and financial audits as required by applicable audit rules. First-tier subawards of $30,000 or more and executive compensation reporting obligations also apply.
Who Can Apply
Entities that may apply include incorporated organizations, Indian Tribes or Tribal organizations, State governments, local units of government, and other legal entities (including cooperatives, private corporations, and LLCs). Corporations convicted of a Federal felony in the past 24 months or with certain unpaid federal tax liabilities are not eligible.
Application, Registration, and Submission Rules
To apply you must submit one electronic application between February 20, 2025 and April 21, 2025 through the USDA online intake system and have a Unique Entity Identifier (UEI), active SAM registration, Level II eAuthentication (eAuth) account, and an Authorized Representative Request (ARR). Only one application per applicant will be considered for approval; if multiple are submitted the highest-scoring one will be reviewed.
Buy America Procurement Rules Apply
Awardees that are Non-Federal Entities must follow Build America, Buy America Act (BABA) requirements; other entities must follow the Agency's Buy American rules at 7 CFR part 1787. Waivers must follow USDA guidance and applicable regulations.
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