[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3280 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 3280

 To increase access to broadband telecommunications services in rural 
  areas, to increase minimum broadband speeds in rural areas, and to 
provide grants, loans, and loan guarantees to finance the costs of the 
construction, improvement, and acquisition of facilities and equipment 
       for broadband service in rural areas, and other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2025

    Mr. Feenstra (for himself, Mrs. Miller-Meeks, Mr. Bost, and Ms. 
  Stansbury) introduced the following bill; which was referred to the 
 Committee on Agriculture, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To increase access to broadband telecommunications services in rural 
  areas, to increase minimum broadband speeds in rural areas, and to 
provide grants, loans, and loan guarantees to finance the costs of the 
construction, improvement, and acquisition of facilities and equipment 
       for broadband service in rural areas, and other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Broadband Modernization Act''.

SEC. 2. RURAL BROADBAND MODERNIZATION.

    (a) In General.--Section 601 of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb) is amended to read as follows:

``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
              AREAS.

    ``(a) Purpose.--The purpose of this section is to provide grants, 
provide loans, and provide loan guarantees to provide funds for the 
costs of the construction, improvement, and acquisition of facilities 
and equipment for broadband service in rural areas.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband service' 
        means any technology identified by the Secretary as having the 
        capacity to transmit data to enable a subscriber to the service 
        to originate and receive high-quality voice, data, graphics, 
        and video.
            ``(2) Rural area.--
                    ``(A) In general.--The term `rural area' means any 
                area other than--
                            ``(i) an area described in clause (i) or 
                        (ii) of section 343(a)(13)(A) of the 
                        Consolidated Farm and Rural Development Act (7 
                        U.S.C. 1991(a)(13)(A)); and
                            ``(ii) in the case of a grant or direct 
                        loan, a city, town, or incorporated area that 
                        has a population of greater than 20,000 
                        inhabitants.
                    ``(B) Urban area growth.--The Secretary may, by 
                regulation only, consider an area described in section 
                343(a)(13)(F)(i)(I) of such Act to not be a rural area 
                for purposes of this section.
                    ``(C) Exclusion of certain populations.--The term 
                does not include any population described in 
                subparagraph (H) or (I) of section 343(a)(13) of such 
                Act (7 U.S.C. 1991(a)(13)).
    ``(c) Grants, Loans, and Loan Guarantees.--
            ``(1) In general.--The Secretary shall make grants, shall 
        make loans, and shall guarantee loans to eligible entities 
        described in subsection (d) to provide funds for the 
        construction, improvement, or acquisition of facilities and 
        equipment for the provision of broadband service in rural areas 
        that, at a minimum, delivers 100 Mbps (or such greater rate as 
        the Secretary may establish) symmetrical throughput for each 
        rural household in the proposed service area.
            ``(2) Applications.--The Secretary shall establish an 
        application process for grants under this section that--
                    ``(A) permits a single application for a grant and 
                a loan under title I, II, or this title that is 
                associated with the grant;
                    ``(B) provides a single decision to award such a 
                grant and loan; and
                    ``(C) ensures timely consideration of applications 
                by approving or denying applications within 30 days 
                after submission.
            ``(3) Priority.--
                    ``(A) In general.--In making grants, making loans, 
                and guaranteeing loans under paragraph (1), the 
                Secretary shall--
                            ``(i) give the highest priority to 
                        applications for projects to provide broadband 
                        service to unserved rural communities that do 
                        not have any residential broadband service of 
                        at least--
                                    ``(I) a 25-Mbps downstream 
                                transmission capacity; and
                                    ``(II) a 3-Mbps upstream 
                                transmission capacity;
                            ``(ii) give priority to applications for 
                        projects to provide the maximum level of 
                        broadband service to the greatest proportion of 
                        rural households in the proposed service area 
                        identified in the application;
                            ``(iii) give priority to eligible entities 
                        that have provided broadband service or utility 
                        service in rural areas for at least 5 years in 
                        the State for which an award is sought;
                            ``(iv) provide equal consideration to all 
                        eligible entities, based on organizational 
                        form; and
                            ``(v) with respect to 2 or more 
                        applications that are given the same priority 
                        under clause (i), give priority to an 
                        application that requests less grant funding 
                        than loan funding.
                    ``(B) Other.--After giving priority to the 
                applications described in clauses (i) through (iii) of 
                subparagraph (A), the Secretary shall give priority to 
                applications--
                            ``(i) for projects to provide broadband 
                        service to rural communities--
                                    ``(I) with a population of less 
                                than 10,000 permanent residents;
                                    ``(II) that are experiencing 
                                outmigration and have adopted a 
                                strategic community investment plan 
                                under section 379H(d) of the 
                                Consoldiated Farm and Rural Development 
                                Act that includes considerations for 
                                improving and expanding broadband 
                                service;
                                    ``(III) with a high percentage of 
                                low income families or persons (as 
                                defined in section 501(b) of the 
                                Housing Act of 1949 (42 U.S.C. 
                                1471(b)));
                                    ``(IV) that are isolated from other 
                                significant population centers; or
                                    ``(V) that provide rapid and 
                                expanded deployment of fixed and mobile 
                                broadband on cropland and ranchland 
                                within a service territory for use in 
                                various applications of precision 
                                agriculture; and
                            ``(ii) that were developed with the 
                        participation of, and will receive a 
                        substantial portion of the funding for the 
                        project from, 2 or more stakeholders, 
                        including--
                                    ``(I) State, local, and tribal 
                                governments;
                                    ``(II) nonprofit institutions; that 
                                provide community development or 
                                assistance services;
                                    ``(III) community anchor 
                                institutions, such as--
                                            ``(aa) public libraries;
                                            ``(bb) elementary schools 
                                        and secondary schools (as 
                                        defined in section 8101 of the 
                                        Elementary and Secondary 
                                        Education Act of 1965 (20 
                                        U.S.C. 7801));
                                            ``(cc) institutions of 
                                        higher education; and
                                            ``(dd) health care 
                                        facilities;
                                    ``(IV) private entities; and
                                    ``(V) philanthropic organizations.
            ``(4) Grant amounts.--
                    ``(A) Maximum.--Except as provided in subparagraph 
                (B), the amount of any grant made under this section 
                shall not exceed 75 percent of the total project cost.
                    ``(B) Secretarial authority to adjust.--
                            ``(i) In general.--The Secretary may make 
                        grants of 100 percent of the development costs 
                        of the project for which the grant is provided 
                        to an eligible entity if the Secretary 
                        determines that the project serves an area of 
                        rural households where the population density 
                        is fewer than 7 households per square mile.
                            ``(ii) Definition of development costs.--In 
                        this paragraph, the term `development costs' 
                        means costs of--
                                    ``(I) construction, including labor 
                                and materials;
                                    ``(II) project applications; and
                                    ``(III) other development 
                                activities, as determined by the 
                                Secretary.
                            ``(iii) Density determinations.--In 
                        determining population density under this 
                        section, the Secretary shall prescribe a 
                        calculation method which--
                                    ``(I) utilizes publicly available 
                                data; and
                                    ``(II) includes only those areas in 
                                which the applicant is able to meet the 
                                service requirements under this 
                                section, as determined by the 
                                Secretary.
            ``(5) Fees.--In the case of loan guarantees issued or 
        modified under this section, the Secretary shall charge and 
        collect from the lender fees in such amounts as to reduce the 
        costs of subsidies for guaranteed loans, except that the amount 
        of the fees shall be determined so as to not act as a bar to 
        participation in the programs and to not be inconsistent with 
        current practices in the marketplace.
    ``(d) Eligibility.--
            ``(1) Eligible entities.--
                    ``(A) In general.--To be eligible to obtain a 
                grant, loan, or loan guarantee under this section, an 
                entity shall--
                            ``(i) demonstrate the ability to furnish or 
                        improve service in order to meet the broadband 
                        buildout requirements established under 
                        subsection (e)(3) in all or part of an unserved 
                        rural area;
                            ``(ii) submit to the Secretary an 
                        application at such time, in such manner, and 
                        containing such information as the Secretary 
                        may require; and
                            ``(iii) agree to complete buildout of the 
                        broadband infrastructure described in the 
                        application by not later than 5 years after the 
                        initial date on which the application is 
                        approved and the initial funds pursuant to that 
                        award are received by the applicant.
                    ``(B) Limitation.--The Secretary may not provide to 
                an eligible entity that provides telecommunications or 
                broadband service to at least 20 percent of the 
                households in the United States, funds under this 
                section for a fiscal year in excess of 15 percent of 
                the funds made available under subsection (j) for the 
                fiscal year.
            ``(2) Eligible projects.--
                    ``(A) Grant.--To be eligible for a grant under this 
                section, a project shall--
                            ``(i) be carried out in a proposed service 
                        territory in which not less than 90 percent of 
                        the households are unserved by terrestrial 
                        wireline or licensed wireless broadband service 
                        speeds of at least 100 Mbps downstream 
                        transmission capacity and 20 Mbps upstream 
                        transmission capacity, or such higher speed 
                        thresholds as the Secretary may determine 
                        constitute an unserved rural area pursuant to 
                        subsection (e)(2); and
                            ``(ii) not concurrently receive any other 
                        broadband grant administered by the Rural 
                        Utilities Service, the Department of the 
                        Treasury, the National Telecommunications and 
                        Information Administration, or a State grant 
                        program.
                    ``(B) Loan or loan guarantee.--A borrower may use a 
                loan or loan guarantee provided under this section to 
                carry out a project in a proposed service territory 
                only if, as of the date on which the application for 
                the loan or loan guarantee is submitted, not less than 
                50 percent of the locations in the proposed service 
                territory are unserved or have service levels below the 
                minimum acceptable level of fixed terrestrial broadband 
                service, whether wireline or licensed wireless, 
                established under subsection (e).
            ``(3) Equity and market survey requirements.--
                    ``(A) In general.--The Secretary may require an 
                entity to provide matching funds under this section in 
                an amount not to exceed 10 percent of the amount of the 
                grant, loan, or loan guarantee requested in the 
                application of the entity, unless the Secretary 
                determines that a higher percentage is required for 
                financial feasibility.
                    ``(B) Market survey.--
                            ``(i) In general.--The Secretary may 
                        require an entity that proposes to have a 
                        subscriber projection of more than 20 percent 
                        of the broadband service market in a rural area 
                        to submit to the Secretary a market survey.
                            ``(ii) Less than 20 percent.--The Secretary 
                        may not require an entity that proposes to have 
                        a subscriber projection of less than 20 percent 
                        of the broadband service market in a rural area 
                        to submit a market survey under clause (i).
                            ``(iii) Information.--Information submitted 
                        under this subparagraph shall be--
                                    ``(I) certified by the affected 
                                community, city, county, or designee; 
                                or
                                    ``(II) demonstrated on--
                                            ``(aa) the broadband map of 
                                        the affected State if the map 
                                        contains address-level data; or
                                            ``(bb) the National 
                                        Broadband Map if address-level 
                                        data is unavailable.
            ``(4) State and local governments and indian tribes.--
        Subject to paragraph (1), a State or local government 
        (including any agency, subdivision, or instrumentality thereof 
        (including consortia thereof)) and an Indian tribe shall be 
        eligible for assistance under this section to provide broadband 
        services to a rural area.
            ``(5) Technical assistance and training.--
                    ``(A) In general.--The Secretary may provide to any 
                eligible entity described in paragraph (1) of this 
                subsection that is applying for assistance under this 
                section for a project described in subsection 
                (c)(3)(A)(i) technical assistance and training--
                            ``(i) to prepare reports and surveys 
                        necessary to request grants, loans, and loan 
                        guarantees under this section for broadband 
                        deployment;
                            ``(ii) to improve management, including 
                        financial management, relating to the proposed 
                        broadband deployment;
                            ``(iii) to prepare applications for grants, 
                        loans, and loan guarantees under this section; 
                        or
                            ``(iv) to assist with other areas of need 
                        identified by the Secretary.
                    ``(B) Funding.--Not less than 3 percent and not 
                more than 5 percent of the amounts appropri