Bennet & Bennet, PLLC

As part of a budget compromise reached to prevent a government shutdown, funding for the Rural Utilities Service’s (RUS) rural broadband loan program has been targeted for cancellation.  In March, RUS announced it had begun taking steps to make loans available to support broadband deployment in rural areas across the country through its loan program.  RUS was expecting approximately $700 million in program level loan authority which would be secured by $68 million in appropriations authorized under the 2008 Farm Bill.  The loan authority has now been marked for cancelation by the House Appropriations Committee as part of the recent budget compromise.  Parties on both sides of the aisle in Congress are currently hammering out the full details of the next Federal budget , and there is a possibility that a portion of the RUS loan appropriation could be restored.  In a recent speech, the President renewed his administration’s commitment to continue investing in infrastructure, including broadband.  The RUS broadband loan program is a major source of financing for rural communications providers and is essential to the President’s and FCC’s broadband goals.  RUS loan money must be paid back with interest and the program has a default rate of less than one percent.

For additional information, please contact Tony Veach.

Tags: Broadband, Broadband Loan Program, RUS