[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