Rural broadband program loans and grants

(a) In general Section 601 of the Rural Electrification Act of 1936 (7 U.S.C. 950bb) is amended— (1) in the section heading, by striking Access to broadband telecommunications services in rural areas and inserting ReConnect Rural Broadband Program; (2) in subsection (a), by striking The purpose and all that follows through provide funds for and inserting The Secretary shall establish a program, which shall be known as the ReConnect Rural Broadband Program, to provide grants, loans, and loan guarantees to finance; (3) in subsection (c)— (A) by striking paragraph (1) and inserting the following: (1) In general The Secretary shall make grants, loans, and loan guarantees to eligible entities described in subsection (d) for the purpose of financing the construction, improvement, or acquisition of facilities and equipment necessary for delivering broadband service in rural areas.; (B) in paragraph (2), by striking subparagraphs (A) and (B) and inserting the following: (A) In general In making grants, making loans, and guaranteeing loans under paragraph (1), the Secretary shall 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. (B) Other After giving priority to the applications described in subparagraph (A), the Secretary shall then give priority to applications— (i) for projects to provide broadband service to rural communities— (I) with a population of less than 10,000 inhabitants; or (II) in geographically underserved and distressed areas, including— (aa) a socially vulnerable community (as determined by the Secretary); (bb) a persistent poverty county (as determined by the Secretary); or (cc) in an economically distressed area (as determined by the Secretary); (ii) that were developed with the participation of, and will receive a substantial portion of the funding or in-kind assistance for the project from, 2 or more stakeholders, including— (I) State, local, and Tribal governments; (II) nonprofit institutions; (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 (including 1862 Land-Grant Institutions, 1890 Land-Grant Institutions, 1994 Land-Grant Institutions, Hispanic-Serving Institutions, and Historically Black Colleges and Universities); (dd) health care facilities; and (ee) facilities essential for local or regional commerce or for the movement of goods; (IV) private entities; (V) philanthropic organizations; and (VI) cooperatives; or (iii) that are submitted by an eligible entity or is owned by an entity that has provided broadband service or other utility service for at least 5 years in rural areas in the State in which the project would be carried out. (C) Affordability In determining whether a household is unserved for purposes of this section, the Secretary shall consider the affordability of broadband service.; (C) in paragraph (3)— (i) in subparagraph (B)— (I) by striking and at the end of clause (i); (II) by striking the period at the end of clause (ii) and inserting; and; and (III) by adding at the end the following: (iii) shall be subject to a grant agreement of not less than 10 years.; (ii) by striking subparagraphs (C) and (D) and inserting the following: (C) Applications (i) Grant-only applications The Secretary shall establish an application process that permits an application for a grant-only award. (ii) Combined applications The Secretary shall establish an application process that— (I) permits a single application for a grant and a loan under title I or II, or this title, that is associated with the grant; and (II) provides a single decision to award the grant and the loan.; (iii) by redesignating subparagraph (E) as subparagraph (D); and (iv) by striking subparagraph (F); and (D) by striking paragraph (4) and inserting the following: (4) Fees (A) Initial guarantee fee The Secretary may assess an initial guarantee fee for any insured or guaranteed loan issued or modified under this section in an amount that does not exceed 3 percent of the guaranteed principal portion of the loan. (B) Periodic retention fee The Secretary may assess a periodic retention fee for any insured or guaranteed loan issued or modified under this section in an amount that does not exceed 0.75 percent of the outstanding principal of the guarantee loan. (C) Disclosure In altering any fee charged for any insured or guaranteed loan issued or modified under this section, the Secretary, not less than 30 days in advance of any fee change, shall provide a public disclosure, of the financial data, economic and behavioral assumptions, calculations, and other factors used to determine the new fee rates.; (4) in subsection (d)— (A) in paragraph (1)— (i) in subparagraph (A)— (I) in clause (i), by adding and at the end; and (II) by striking require; and and all that follows through agree and insert require, and agree; (ii) by redesignating subparagraph (B) as subparagraph (E) and inserting after subparagraph (A) the following: (B) Inclusions An entity eligible to obtain assistance under subsection (c) may include— (i) a State or local government, including any agency, subdivision, instrumentality, or political subdivision of a State or local government; (ii) a territory or possession of the United States; (iii) an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); (iv) a cooperative or mutual organization; (v) an organization of 2 or more incorporated areas that have established an intermunicipal legal agreement for the purposes of delivering communication services to residents; (vi) a corporation; or (vii) a limited liability company or limited liability partnership. (C) Ineligible entities An individual or legal general partnership that is formed with individuals shall not be eligible to obtain a grant, loan, or grant and loan combination under subsection (c). (D) Affiliated owned and operated networks Under this subsection, the Secretary may fund the construction of networks owned and operated by an affiliate of an eligible entity receiving the grant, loan, or loan guarantee, if the eligible entity, the affiliate, or both, as determined necessary by the Secretary, furnishes adequate security for the grant, loan, or loan guarantee.; and (iii) in subparagraph (E) (as so redesignated by clause (ii) of this subparagraph), by inserting, directly or in conjunction with any combination of affiliates, before may not; (B) in paragraph (2)— (i) in subparagraph (A)— (I) by striking subparagraphs (B) and (C) and inserting subparagraph (B); (II) by striking is submitted— and all that follows through (i) not less than 50 and inserting is submitted not less than 75; and (III) by striking (e); and and all that follows and inserting (e).; (ii) in subparagraph (B), by striking (A)(i) and inserting (A); and (iii) by striking subparagraph (C) and inserting the following: (C) Affordability In deciding whether a proposed service territory is unserved for purposes of subparagraph (A), the Secretary shall consider the affordability of broadband service in the service territory.; and (C) by striking paragraphs (4) and (5); (5) in subsection (e)— (A) in paragraph (1)— (i) by striking Subject to paragraph (2), for and inserting For; (ii) in subparagraph (A), by striking 25 and inserting 50; and (iii) in subparagraph (B), by striking 3 and inserting 25; (B) by striking paragraph (2) and inserting the following: (2) Adjustments The Secretary may adjust, through a 30-day public notice and comment period published in the Federal Register, an increase in the minimum level of broadband service under paragraph (1) of no more than 50 percent from the preceding year, if less than 95 percent of the funds of the program are obligated in the preceding 2 funding rounds.; and (C) in paragraph (4)— (i) in the paragraph heading, by striking buildout and inserting project agreement; and (ii) by striking subparagraphs (B) through (D) and inserting the following: (B) Broadband buildout standards defined A project must meet the following applicable broadband standard in order to be considered for assistance; (i) A project with an award term of less than 8 years must provide service at 2 times the minimum broadband speed established in subsection (e)(1). (ii) A project with an award term of at least 8 years and less than 14 years must provide service at 5 times the minimum broadband speed established in subsection (e)(1). (iii) A project with an award term of 14 or more years must provide service at 10 times the minimum broadband speed established in subsection (e)(1). (C) Network upgrade planning The Secretary may prioritize an applicant seeking to meet the broadband buildout standards under clause (i) or (ii) of subparagraph (B) if the applicant submits information regarding the potential for the physical infrastructure of the network to be upgraded to meet the broadband buildout standards under subparagraph (B)(iii) at the time of the application, assuming reasonable progress in relevant networking technologies.; (6) by striking subsection (j) and inserting the following: (j) Authorization of appropriations There is authorized to be appropriated to the Secretary to carry out this section $350,000,000 for each of fiscal years 2027 through 2031, to remain available until expended.; and (7) in subsection (k), by striking 2023 and inserting 2031. (b) Regulations Not later than 270 days after the date of the enactment of this Act, the Secretary shall promulgate rules to carry out the amendments made by subsection (a) of this section, and complete the biennial review process required by section 601(e)(2) of the Rural Electrification Act of 1936. (c) Sunset The authorities provided by section 779 of the Consolidated Appropriations Act, 2018 (Public Law 115–141) shall have no force or effect beginning 270 days after the date of the enactment of this Act. (d) Transition rules (1) Availability of funds for administrative costs Not more than 1 percent of the unobligated balances of amounts made available, as of the date that is 270 days after the date of the enactment of this Act, to carry out the pilot program described in section 779 of the Consolidated Appropriations Act, 2018 (Public Law 115–141) may be used for the costs of transitioning from the pilot program to the program under section 601 of the Rural Electrification Act of 1936, as amended by this Act. (2) Consolidation of funds (A) In general The unobligated balances of all amounts made available on or before June 30, 2025, to carry out the pilot program described in section 779 of the Consolidated Appropriations Act, 2018 (Public Law 115–141) that are in excess of the amount described in subparagraph (B) of this paragraph are hereby transferred to and merged with amounts made available to carry out the program authorized under section 601 of the Rural Electrification Act of 1936. (B) Unfunded approvals The amount described in this subparagraph is the amount required to fully fund each project approved as of the date that is 270 days after the date of the enactment of this Act, under the pilot program described in such section 779 for which amounts were not obligated or partially obligated as of such date.