Title 7, AgricultureRelease 119-110

§950bb–5 Default and Deobligation; Deferral

Title 7 › CHAPTER 31 — RURAL ELECTRIFICATION AND TELEPHONE SERVICE › SUBCHAPTER VI — RURAL BROADBAND ACCESS › § 950bb–5

Last updated Sep 22, 2026|Official source

Summary

The Secretary must write rules for all broadband programs so they, as much as possible, recover money when loans or grants default. The rules must let the agency take back award money when a project shows poor performance or when funds were spent fraudulently, after allowed costs and only if the program account still has the funds. The rules must also require that recovered money be awarded again by competition to new or existing applicants under this subchapter and that overlap between programs be kept to a minimum. The Secretary may set a deferral period that is at least as long as the project’s buildout period to help the project remain financially feasible and sustainable over the long term.

Full Legal Text

Title 7, §950bb–5

Agriculture, Source: USLM XML via OLRC

(a)Default and deobligation

In addition to other authority under applicable law, the Secretary shall establish written procedures for all broadband programs so that, to the maximum extent practicable, the programs are administered to—

(1)recover funds from loan and grant defaults;

(2)deobligate any awards, less allowable costs that demonstrate an insufficient level of performance (including metrics determined by the Secretary) or fraudulent spending, to the extent funds with respect to the award are available in the account relating to the program established by this subchapter;

(3)award those funds, on a competitive basis, to new or existing applicants consistent with this subchapter; and

(4)minimize overlap among the programs.

(b)Deferral period

In determining the terms and conditions of assistance provided under this subchapter, the Secretary may establish a deferral period of not shorter than the buildout period established for the project involved in order to support the financial feasibility and long-term sustainability of the project.

Reference

Citations & Metadata

Citation

7 U.S.C. § 950bb–5

Title 7, Agriculture

Last Updated

Sep 22, 2026

Release point: 119-110