Feds approve Missouri's next step to get $1.7 billion for broadband expansion

(The Center Square) – The federal government approved the next phase of Missouri’s plan to spend $1.7 billion on broadband projects.

The Office of Broadband Development announced the National Telecommunications and Information Administration, part of the Department of Commerce, approved the state’s 135-page proposal dealing with how funding will be spent to bring broadband to more than 200,000 locations throughout the state. Tennessee’s plan for $813 million to expand broadband also was approved.

“In the 21st century, a reliable Internet connection is a necessity that enables access to jobs, healthcare, and education,” Gina Raimondo, U.S. Secretary of Commerce, said in a statement announcing the plan approvals. “Thanks to the Biden-Harris Administration’s Bipartisan Infrastructure Law, the Department of Commerce is committed to ensuring that everyone in Missouri, Tennessee, and across the country has access to quality, affordable high-speed internet.”

Missouri’s federally approved second phase is part of the state’s funding proposal for the federal Broadband Equity, Access and Deployment program. The program, along with the Digital Equity Act, are both under the Infrastructure, Investment and jobs Act. More than $20 million is being planned for Missouri to address non-infrastructure barriers to full online and digital participation.

The approved plan provides rules on how the Office of Broadband will award funds to internet service providers to complete projects. It also has provisions for how the state will hold the recipients of federal funds accountable for proper utilization. The first phase required an initial funding proposal.

The Office of Broadband Development now has 365 days to submit its final proposal to the federal government, which will provide the specific plans to serve each eligible location.

“We are moving forward with planning for the BEAD application at this point with the standards we have set up,” BJ Tanksly, the director of the Office of Broadband Development, said during a conference call last week with stakeholders from throughout the state.

The federal government approved the possibility for the Missouri to hold multiple rounds of competitive applications to request funding for providing broadband services to unserved and underserved areas. The first round of grant applications will be available in the coming months.

The Office of Broadband Development also announced requirements for providers to offer a federally required “low-cost-plan” for broadband. Missouri will allow a variance from $30 to $70 per month if providers demonstrate the higher cost is necessary for a financially sustainable project for an area.