Well, they did it. The Ohio Senate passed its two-year $75-billion budget bill yesterday, which included an amendment that effectively bans the creation of municipal broadband networks without much in the way of public debate.

If the amendment contained in the Senate’s budget survives the budget process, it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks.

The vote was along party lines, with 25 GOP State Senators voting in favor of the Senate budget bill and the chamber’s eight Democrats voting against it. With the House having passed its budget bill in April, now the two legislative bodies have until June 30 to negotiate the differences.

According to the Columbus Dispatch, the House and Senate budget bills agree on about 60 percent of what’s contained in the Senate spending proposal. Where the House and Senate disagree is on the size of a state income tax cut, school funding, access to subsidized childcare, and broadband.

Ohio on Cusp of Municipal Broadband Ban

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendment that saddles community-owned projects with an array of conditions designed to prevent, stifle, and discourage political subdivisions from building and operating networks that meet the connectivity challenges of its residents. It also takes aim at existing projects which enhance the resiliency of regional communications, telehealth, and public safety operations.

Among the most pernicious consequences would be that it only allows for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

The Ohio State Senate is set to vote today on the state budget bill that includes an amendment which, if signed into law, would be a major setback for municipal broadband projects in the Buckeye State and protect the big incumbent Internet Service Providers from competition. 

If passed and signed into law it would make Ohio the first state in a decade to erect barriers to the establishment and expansion of municipal broadband networks. This is a surprising and disappointing move, especially for families who have spent the last year experiencing firsthand the poor Internet connectivity that comes with a broadband market dominated by monopoly providers with no incentive to put the interests of the public ahead of shareholder returns.

Erecting Barriers

When the Senate version of the state budget bill was unveiled earlier this week, it included an amendement with an array of conditions designed to prevent, stifle, and discourage cities from following through with any plan for a city-run network to meet the connectivity challenges of its residents.

The first is a provision that would only allow for municipal broadband networks to be built in “unserved” areas of the state, defined as geographic regions where residents do not have access to “broadband service capable of speeds of at least 25 Mbps downstream and at least 3 Mbps upstream.”

But a recent Ohio Broadband Strategy report released in 2019 under the direction of Ohio Lt. Gov. Jon Husted pegged the number of Ohioans without access to broadband at just around 1 million. According to the independent broadband tracking firm BroadbandNow, which ranks Ohio 24th in the nation on the broadband access scale, as of June 2021 there were 618,000 Ohio residents who did not have access to broadband with speeds of 25/3 or faster, which means that approximately 94 percent of Ohioans have access to wired broadband with speeds of 25/3 or faster. Restricting municipal networks to only those households with no service whatsoever would effectively preclude new networks in large parts of the state.

The day after the U.S. Treasury published the Interim Final Rules on how Coronavirus relief funds in the American Rescue Plan Act can be spent, we sounded the alarm because it appears the rules, if finalized as is, would significantly limit local communities’ ability to invest in needed broadband infrastructure.

Last week, Sen. Ron Wyden (D-Oregon) and eight other members of Congress joined the growing number of community broadband advocates who share those concerns.

On Tuesday, May 25, Sen. Wyden sent a letter to Treasury Secretary Janet Yellen urging her “to ensure any community with service that falls below (the Treasury’s) own standard of 100 (Megabits per second) Mbps upload and download speeds is eligible for funding.”

Two days later, U.S. Rep. Anna G. Eshoo (D-California) and Sen. Cory Booker (D-New Jersey) penned a similar letter that was also signed by Wyden and six other members of Congress (U.S. Reps. Raúl M. Grijalva, Mike Thompson, Jerry McNerney, Lori Trahan, Peter Welch, and Debbie Dingell). Eshoo and Booker have long led efforts to support local initiatives to expand Internet access with community solutions.

25/3 Not Sufficient  

Even as the Treasury acknowledges that families really need 100/100 Mbps service, as the Interim Rules are currently written it suggests communities are expected to focus on areas that do not have 25/3 Megabits per second (Mbps) wireline service “reliably available.” About 90 percent of Americans have 25/3 “available” to them by flawed federal estimates, although millions lack service because it is unaffordable or effectively unreliable. And there is no standard for reliability that communities can measure against.

The Eshoo/Booker letter is particularly salient on this point: 

Closing the homework gap has been a top priority for Federal Communications Commission (FCC) acting Chair Jessica Rosenworcel. She has a long track record advocating for Wi-Fi-enabled school buses, lamenting viral images of school children completing homework in fast food parking lots, and making the case that no child should be left offline. At the onset of the pandemic, she pledged to use her influence at the agency to fight to increase the flexibility of the E-Rate program, saying “every option needs to be on the table.”

When the American Rescue Plan Act established the Emergency Connectivity Fund (ECF) in March, a $7 billion program to connect students and library patrons to the Internet at off-campus locations, Rosenworcel had an opportunity to follow through on those promises. She could have seized the moment to steer the program in the direction of allowing schools and libraries to build, own, and operate their own school and community networks (what the federal government refers to as self-provisioned networks). Many schools serving areas with poorly connected students already do this, but without much help from the E-rate program.

But when the rules on how to spend the money were finalized on May 10th, the FCC’s Report and Order declared that schools and libraries could not use Connectivity Funds to build self-provisioned networks, but instead could only use the funds to purchase Wi-Fi hotspots, modems, routers, and connected devices, such as laptop computers and tablets. The one exception in which schools and libraries can use Connectivity Funds to build self-provisioned networks is in “areas where no service is available for purchase,” based on data self-reported by private ISPs. 

Snapshot

North Carolina Governor budgets $1.2 billion of Rescue Plan funds towards closing the digital divide

Vermont Senate includes private ISPs in what was a community-based solution to universal access

Alabama Governor approves $17 million in broadband grants, some to Comcast and Charter Spectrum

The State Scene

North Carolina 

North Carolina Gov. Roy Cooper released a budget proposal last Wednesday that anticipates using $1.2 billion of incoming federal COVID-19 relief funds towards broadband infrastructure, affordability initiatives, and expanding digital literacy. With North Carolina set to receive a total of $5.7 billion in federal American Rescue Plan funds, Gov. Cooper is dedicating nearly one-fifth of the incoming relief to closing the digital divide. 

Next, the State House, Senate, and the North Carolina General Assembly will create their proposals for how to spend the relief funding. Then, they'll have to rectify any differences. Each chamber's plans could look similar to the governor's or vastly different. 

Gov. Cooper’s proposal specifically allocates [pdf]:

• $600 million towards expanding broadband infrastructure, including: $350 million for the state’s existing last-mile grant program (GREAT grants), $150 million for competitive bidding which will allow county governments to leverage the funds for public-private partnerships, and $100 million towards stop gap solutions “to address local infrastructure needs and connect underserved households not likely to get fiber for three to four years.”

• $420 million towards affordability initiatives which will subsidize low-income service plans.

• $165 million for digital literacy, including: $40 million towards device support to provide computers to 96,000 households which currently lack them; $30 million towards break/fix services to replace devices for over 275,000 North Carolinians; and $95 million towards community-based digital literacy campaigns.

The plan aims to connect 100 percent of North Carolina households with children to high-speed Internet access by 2025, and anticipates the affordability initiatives in the proposed budget will provide 380,000 individuals with a $50/month subsidy for four years. 

With $3.9 billion from the American Rescue Plan Act on its way to Maryland, Gov. Larry Hogan and state legislative leaders have agreed to seize the moment, allocating $300 million of federal COVID-19 relief funds to expand broadband infrastructure and digital inclusion initiatives across the state.

The biggest bulk of the money – $97 million – will go towards funding the building of physical infrastructure with $45 million earmarked specifically for municipal broadband grants.

“The question isn’t how much it’ll cost to bridge the digital divide, the question is how much will it cost if we don’t act right now,” State Senate President Bill Ferguson said at a press conference when the funding was announced.

The bipartisan budget agreement was hailed by Gov. Hogan, a Republican, as an example for the nation demonstrating how “people from different parties can still come together, that we can put the people’s priorities first, and that we can deliver real, bipartisan, common sense solutions to the serious problems that face us.”

One “serious problem” in Maryland, according to a recent Abell Foundation report, is that 23 percent of Maryland households (520,000) do not have a wireline home Internet connection, 40 percent (or 206,000) of which are Black households.

Much of that comes from a lack of affordability and other barriers to adoption. To deal with those challenges, the budget agreement also includes $45 million to subsidize monthly Internet service costs for qualifying families and $30 million to pay for Internet-connected devices for financially eligible households. It also includes an additional $4 million for a new University System of Maryland program to support training and developing curriculum to bridge the digital divide as well as $2 million for digital navigator programs.

Snapshot

Florida Legislature rewrites utility pole bill to include language backed by municipal electric utilities

North Carolina’s County Broadband Authority Act includes clause drawing criticism from electric co-ops

Oklahoma Governor signs mapping bill, vetoes measure adding Tribal representation to state broadband council

The State Scene

Florida

A Florida bill, which included provisions that would have forced Florida’s municipal electric utilities and their ratepayers to pay private Internet Service Providers’ utility pole make-ready costs, was significantly revised before passing the State House by a unanimous vote of 115-0 on April 28.

H.B. 1239, which no longer includes the make-ready costs provisions, initially read like a regulatory wishlist for incumbent cable monopolies until it was redrafted to become a legislative package aimed at improving broadband deployment across the state. The revised bill now heads to the State Gov. Ron DeSantis for approval.

The final version of the bill establishes additional duties for Florida’s Office of Broadband, creates a state broadband grant program, and requires the Office to conduct mapping of unserved and underserved areas of the state -- a significant deviation from the version that was first introduced in February.

Snapshot

Nebraska Senate rejects amendment supporting municipal broadband in spending plan

Michigan Governor vetoes bill granting private ISPs property tax exemptions

Montana, Iowa and Maine channel Rescue Plan funds towards new broadband grant initiatives

The State Scene

Nebraska

The Nebraska Senate approved a plan to spend $40 million over the next two years on expanding rural access to high-speed Internet by a unanimous vote on Tuesday, but only after an amendment to L.B. 388 that would have allowed municipalities to offer retail broadband services was rejected.

State Sen. Justin Wayne introduced the amendment, saying that “broadband should be considered a critical infrastructure need and that private telecommunications companies have not stepped up to serve the whole state,” the Lincoln Journal Star reports.

Wayne urged Nebraska Senators “to look to Nebraska's history of public power as a model, as well as to the example of other states that are allowing cities to offer broadband.” The amendment ultimately failed by a vote of 20-24. Wayne assured fellow Senators that he will reintroduce the amendment in the future. 

The bill marked the first time the Nebraska Legislature has suggested using state tax dollars to fund broadband deployment. As it was submitted to Gov. Pete Ricketts for his signature, the bill would annually allocate, until funds run out, $20 million in grants to projects that increase access to high-speed broadband in unserved regions of Nebraska. It would prioritize projects in regions which lack access to Internet service with speeds of at least 25 Megabits per second (Mbps) download/3 Mbps upload. Grant recipients would be required to deploy networks capable of providing service of at least 100/100 Mbps within 18 months. 

Michigan

Snapshot

Maryland plans to funnel American Rescue Plan Act funding towards community broadband 

Vermont Governor bolsters House plan backing Communications Union Districts 

A national movement to address digital inclusion ignites

See the bottom of this post for related job openings

State Scene

Maryland

Maryland State Governor Larry Hogan made digital equity and literacy a top priority of the state when he signed H.B. 97, the Digital Connectivity Act, into law on April 13. The new law establishes the Office of Statewide Broadband (OSB) within the Maryland Department of Housing and Community Development to create a plan to get all Marylanders connected to affordable, high-speed Internet by 2026. The OSB will also assist in administering $300 million for digital equity initiatives out of the $3.9 billion Maryland received in American Rescue Plan funds. 

The $300 million allocation will be broken down into separate pots of money to address physical infrastructure, affordability, and adoption: $45 million will be for grants that support and expand municipal broadband networks; $75 million for affordability initiatives to subsidize the cost of monthly service fees and devices for eligible residents who are subscribers to private Internet Service Providers (ISPs); and $150 million dedicated to deploy broadband infrastructure and expand connectivity in both urban and rural areas. In addition, $10 million is earmarked for local government and community-based solutions, and $6 million will support adoption initiatives, including $4 million for a new division under the University System of Maryland to develop curriculum on digital literacy and addressing the broadband gap.

In the American Rescue Plan Act, Congress and the Biden Administration included a multi-billion dollar appropriation to help expand high-speed Internet access. This guide offers an overview of the different funding opportunities for communities interested in expanding broadband services. As application deadlines vary in some cases and other money must be spent within certain time frames, it is critical for states, municipalities, community organizations, and Tribal governments to start planning initiatives now. 

It’s also worth emphasizing that 18 states still put localities at a disadvantage when it comes to spending anticipated funding effectively by preserving laws that interfere with community investment in broadband infrastructure. Much of this money could also be funneled for other purposes due to a lack of good plans and community engagement. 

The amount of funding flowing into communities is unprecedented. Localities should prepare to spend funds on needed, futureproof infrastructure. This is an historic, once-in-a-lifetime investment in Internet infrastructure and communities who develop a clear, actionable plan and are as ready as possible once the money starts flowing will prosper.

Directory

If you’re a homeowner looking for assistance paying your Internet bill…look to the Emergency Broadband Benefit Program or Homeowner’s Assistance Fund. 

If you’re an HBCU or Minority-serving institution looking to expand Internet access to your students, or if you’re a minority business enterprise or nonprofit organization in the surrounding community...look to the Connecting Minority Communities Pilot Program.

if you’re a Tribal government, Tribal organization, or Tribal college or university, including native Hawaiian organizations, education programs and native corporations…look to the Tribal Broadband Connectivity Program.

If you’re a city interested in partaking in a public-private partnership…look to the Promote Broadband Expansion Grant Program. 

If you’re a school or library whose main concern is obtaining remote Internet access devices...look to the Emergency Connectivity Fund.

Federal Aid Directly To States, Counties, Localities and Territories