US gov’t details plans for $42bn investment

The United States government has announced its plans to distribute $42 billion among all 50 states in an effort to enhance access to high-speed broadband by 2030. This move comes as part of a new campaign to promote President Joe Biden’s economic policies. The allocation of federal funding through the Broadband Equity, Access, and Deployment Program is based on the recently released coverage map from the Federal Communications Commission, which identifies gaps in broadband accessibility.

Leading the funding list are the states of Texas and California, with allocations of $3.1 billion and $1.9 billion respectively, primarily due to their large populations. Surprisingly, smaller states such as Virginia, Alabama, and Louisiana have also secured spots in the top 10, reflecting their significant gaps in broadband coverage. President Biden emphasised the importance of this investment, stating that internet access is as crucial as basic utilities like electricity and water for a thriving economy.

Under this initiative, each state will receive a minimum of $107 million. The announcement marks the beginning of the second leg of President Biden’s nationwide tour, highlighting the impact of legislation passed during the first half of his term on everyday Americans, as he gears up for his 2024 re-election campaign. White House Chief of Staff Jeff Zients compared this broadband effort to President Franklin D Roosevelt’s endeavour in 1936 to bring electricity to rural areas. It is estimated that approximately 8.5 million locations across the US lack access to reliable broadband connections.

Broadband providers such as Verizon, Comcast, Charter Communications, and AT&T have been hesitant to extend their services to low-population rural communities due to the high costs involved and the limited number of potential subscribers in these regions. The lack of broadband access has garnered attention, particularly during the COVID-19 pandemic when students were forced into online learning. States are expected to submit initial plans later this year, which will unlock 20 percent of the funding. However, the final release of the remaining funds may not occur until 2025, as the plans undergo finalisation.

In addition to the broadband initiative, President Biden is scheduled to deliver a significant economic speech in Chicago on Wednesday. According to a memo from senior advisers Anita Dunn and Mike Donilon, the speech, referred to as “Bidenomics,” will emphasise the President’s efforts to strengthen the economy by prioritising the needs of the middle class over the wealthy. The advisers highlighted the creation of over 13 million jobs, including nearly 800,000 manufacturing positions, since Biden took office.

The United States government has announced its plans to distribute $42 billion among all 50 states in an effort to enhance access to high-speed broadband by 2030. This move comes as part of a new campaign to promote President Joe Biden’s economic policies. The allocation of federal funding through the Broadband Equity, Access, and Deployment Program is based on the recently released coverage map from the Federal Communications Commission, which identifies gaps in broadband accessibility.