Title 7, AgricultureRelease 119-73not60

§950bb–5 Default and Deobligation; Deferral

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

Last updated Apr 3, 2026|Official source

Summary

Requires the Secretary to write rules for all broadband programs so they, as much as possible, do four things. The rules must recover money from loan or grant defaults; cancel awards when performance is too low or money was spent fraudulently (after allowed costs) if program funds are available; give recovered funds out again by competition to new or existing applicants; and cut down on overlapping programs. The Secretary can set a deferral period that is at least as long as the project’s buildout period to help the project’s finances and long-term stability.

Full Legal Text

Title 7, §950bb–5

Agriculture, Source: USLM XML via OLRC

(a)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)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

Apr 3, 2026

Release point: 119-73not60