Rural Broadband Modernization Act
The Rural Broadband Modernization Act would create a government-backed program under the Rural Electrification Act of 1936 to meaningfully expand and improve broadband access in rural America. The bill authorizes grants, loans, and loan guarantees to fund the construction, improvement, and acquisition of broadband facilities and equipment in rural areas, with a strong emphasis on high-speed, symmetric service (100 Mbps downstream and 100 Mbps upstream, at minimum). It also sets eligibility rules, prioritization criteria, and terms for loans and grants, and it provides a dedicated funding stream of up to $500 million per year for 2026–2030, with a sunset date of September 30, 2030. The act takes effect October 1, 2025. In short, the bill aims to accelerate rural broadband deployment, raise the minimum service standards, and support financing tools (grants, loans, loan guarantees) for a broad set of eligible entities, including states, local governments, tribes, nonprofits, and private partners, while prioritizing the most underserved areas and those with strong community or multi-stakeholder involvement.
Key Points
- 1Grants, loans, and loan guarantees: The Secretary would provide funds to eligible entities to cover the costs of building, upgrading, or acquiring broadband facilities and equipment in rural areas, with a minimum service requirement of 100 Mbps symmetric for each rural household in the service area and related project standards.
- 2Eligibility and project requirements: Eligible applicants include states, local governments, Indian tribes, nonprofits, and private entities. Projects must generally serve areas where at least 90% of households lack adequate service (as defined by the minimum standards) and must complete buildout within five years. Applicants may be required to provide matching funds and, in some cases, a market survey.
- 3Funding terms and assistance options: Grants normally cover up to 75% of project costs, with a limited option to cover 100% of development costs in very sparsely populated areas. Loans can last up to 35 years, with terms and interest rates determined by the Secretary. The Secretary may offer payment assistance (subsidized loans or zero-interest/low-interest “payment assistance” loans) tied to milestones and project performance.
- 4Priorities and benefits: Priority is given to unserved rural areas with particularly low current speeds (or where such service does not exist at all), projects that maximize the proportion of households served, and applicants with rural-service experience and multi-stakeholder support (including government, nonprofits, libraries, schools, health facilities, and private partners). Projects that support precision agriculture or serve small, isolated communities may receive special emphasis.
- 5Funding window and sunset: The act authorizes up to $500 million per fiscal year for 2026–2030. Funds are allocated across states, with unobligated amounts available for use in other states later. The authority to provide grants or loans ends on September 30, 2030. The act takes effect October 1, 2025.