Next Century Cities’ Explainer

The CF program is open to cities, villages, townships, towns, and Tribal governments with no more than 20,000 residents according to U.S. Census data. The program places priority on communities with a population of less than 5,500. It also prioritizes low-income communities that have a median household income below 80% of the state’s nonmetropolitan median household income. Applications are accepted on a year-round basis.

For information on how to apply for this program, visit USDA’s website here.

Rural eConnectivity Program (“ReConnect”)

Next Century Cities ReConnect Explainer

The USDA ReConnect Program is an annually appropriated grant and loan program administered by the Rural Utilities Service (“RUS”). The program provides funding for the construction, improvement, and facilities acquisition to provide Internet services to rural residences and businesses.

This program is open to corporations, cooperatives, and state, local, and Tribal governments. However, individuals and co-applicants are not eligible for funding. An area is eligible for ReConnect funding if:

• it is a rural area not located within a city or town with more than 20,000 residents.
• if it is not an urbanized area contiguous or adjacent to a city or town with a population greater than 50,000 residents.
• if it meets the first criteria and also does not have access to broadband as defined by the latest Funding Opportunity Announcement (“FOA”).
  • Mobile/cellular and satellite services are not considered when determining if an area has sufficient access to broadband.

Finally, an area seeking to be covered by the ReConnect program is ineligible if it has been previously funded by other RUS telecommunications programs.

When applying for ReConnect funding an applicant must submit unqualified, comparative, and audited financial statements for the previous year. If an applicant does not have a completed audited financial statement, they can submit the two previously completed unqualified audits. All applicants are required to complete an Environmental Questionnaire and other required environmental documentation.

More information about the ReConnect program can be found here. An FAQ for eligibility and the application process can be found here.

Tribal Broadband Connectivity Technical Amendments 

Next Century Cities’ Tribal Broadband Connectivity Technical Amendments  Explainer

The Tribal Broadband Connectivity Program began as a $980 million grant program for broadband use and was recently amended to include an additional $2B. Administered by NTIA, this program will provide grants to Tribal higher education institutions, as well as Tribal governments.

Tribal educational institutions and governments can use this funding for the expansion of broadband access and adoption on Tribal lands. This funding can also be used for the expansion of telehealth, remote work, and distance learning resources during the COVID-19 pandemic. Additionally, these funds can be used for site surveys, land acquisition, and requests for proposals related to a broadband project. Grant funding can also be used to purchase devices and equipment for students, public computer access, feasibility studies, data and mapping research, and other digital skills training. This is not an exhaustive list. Interested applicants should see the notice of funding opportunity for more information on eligible uses.

The NTIA expects to make awards in the following funding ranges:

• For broadband infrastructure deployment projects: $1,000,000 to $50,000,000
• For broadband adoption and use project: $50,000 to $2,500,000.

NTIA is continuing to review the over 280+ applications received during the application window, which closed on Sept. 1, 2021. The Tribal Broadband Connectivity Program will announce additional awards on a rolling basis. Any information about upcoming application windows will be found here.

The Community Development Block Grant (“CDGB”) Program

Next Century Cities’ Community Development Block Grant (“CDGB”) Explainer

The Community Development Block Grant (“CDGB”) program is a grant program administered by HUD. This program provides formulaic annual grants to states, cities, and counties to develop housing, expand economic opportunity, and improve livability, which primarily supports low and moderate-income residents.

While the primary focus of this grant program is not primarily broadband deployment, CDBG funds can be used to finance broadband access and adoption. Grantees can use CDBG funds to install new wiring, purchase computer hardware and software, develop and construct computer rooms, and more. Prospective applicants must ensure that their prospective broadband projects are both an eligible activity and are in compliance with the appropriate national objectives of the CDBG program. Potential applicants can learn more about broadband eligibility under the CDBG here.

For more information, potential applicants can visit the CDBG program website found here. HUD has also provided a webinar on using CDBG money for broadband that can be found here.

Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”)

Next Century Cities’ SLFRF Explainer

The Coronavirus State and Local Fiscal Recovery Funds provide money directly to states and localities to help address the economic fallout and accelerate the recovery from the COVID-19 pandemic. Specifically, the Treasury has allocated $195.3 billion to states, $65.1 billion to counties, $45.6 billion to metropolitan cities, $20 billion to Tribal governments, and $19.5 billion to non-entitlement units of local government. The Treasury uses a different formulaic approach to determine how much funding will be allocated to states, metropolitan cities, counties, and non-entitlement units of local government.

Local governments can expect to receive funding in two tranches, the first having been provided in May of 2021 and the balance to be delivered in May of 2022. However, states that have experienced a net increase in unemployment of more than 2 percentage points since February 2020 will receive their full allocation in a single payment. Costs must be incurred by December 31, 2024, but construction can continue until December 31, 2026.

SLFRF funding can be used for broadband deployment in areas that are unserved or underserved. Here, unserved and underserved areas are any area lacking access to a wireline connection capable of reliably delivering speeds of at least 25 Mbps download and 3 Mbps upload. While the project must be designed to provide service to unserved and underserved areas, those households and businesses do not need to be the only ones served. Additionally, internet access or digital literacy assistance is an eligible use for those households that have faced a negative economic impact due to COVID-19.

For more information, potential applicants can find the SLFRF website here and a summary on the Final Rule here. Potential applicants can submit a request for funding through the Department of the Treasury website. Information about state programs can be found here.

The Coronavirus Capital Projects Fund 

Next Century Cities  (“CPF”) Explainer

The Coronavirus Capital Projects Fund is a $10 billion fund for payments to eligible governments to carry out capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency.

The funding for the CPF is allocated in the following way:

• States receive $9.8 billion
• Territories & Freely Associated States receive $100 million
• Tribal Governments receive $100 million

The CPF defines capital projects as investments in “depreciable assets and the ancillary costs needed to put the capital assets in place.” This means that investments in high-quality broadband and other connectivity infrastructure, devices, and equipment are allowed under the CPF.

Eligible applicants will be required to provide a plan describing how they intend to use allocated funds under the CPF. However, the Treasury Department has yet to issue any rules or guidance in relation to the allocation of CPF funds.

To learn more about the CPF visit the Treasury’s website here. CPF FAQs can be found here (updated January 2022)

The Schools and Libraries Universal Service Support Program (“E-Rate”) 

Next Century Cities’ E-Rate Explainer

The Schools and Libraries Universal Service Support Program (“E-Rate”) helps schools and libraries obtain affordable broadband services. The E-Rate Program provides eligible schools and libraries discounts on telecommunications, Internet access, as well as internal connections, and basic maintenance of those connections.

An institution is eligible for the E-Rate program when they meet the statutory definition of a school or library. A school must be a non-profit institutional day or residential school, which may include a public charter school. These schools must provide either elementary or secondary education as determined by state law. Public libraries, including public elementary or secondary school libraries, academic libraries, research libraries, and private libraries. If an institution meets any of these definitions it is considered eligible for the E-Rate program.

If an entity wishes to receive funding through the E-Rate program they are required to host a competitive bidding process and file Form 470 with the FCC. Potential applicants can read more about the E-Rate application process here.

The Affordable Connectivity Program

NCC ACP Explainer

The COVID-19 pandemic underscored the need for fast, affordable, and reliable broadband to support distance learning, remote work, and telehealth. For those in low-income households, maintaining an Internet connection often means choosing between other necessities. To address the immediate need for Internet access, Congress created the Emergency Broadband Benefit Program (“EBB”) to address affordability, one of the main barriers to adoption.

After a successful year of over 8.5 million enrollments, Congress recognized the need to codify a permanent affordability program and created the Affordable Connectivity Program (“ACP”). The program, run by the Federal Communications Commission (“FCC”), offers a monthly discount to offset the cost of broadband Internet subscriptions. In addition, the program provides a one-time discount on a laptop, desktop, or tablet computer.

Emergency Broadband Benefit recipients fully enrolled as of December 31, 2021 will automatically continue to receive their current monthly benefit until March 1, 2022. You can learn more the program transition and steps you may need to take to stay enrolled after March 1st here.

Various broadband providers, including those offering wired, wireless, and mobile broadband will be participating in the Affordable Connectivity Program. Check with the broadband providers in your area to learn about their plans for program participation and eligible service offerings. You can find a list of participating providers by state and territory by clicking here.

A household is eligible if one member of the household:

– Has an income that is at or below 200% of the federal poverty guidelines; or

– Participates in certain assistance programs, such as SNAP, Medicaid, Federal Public Housing Assistance, SSI, WIC, or Lifeline;

– Participates in Tribal specific programs, such as Bureau of Indian Affairs General Assistance, Tribal TANF, or Food Distribution Program on Indian Reservations;

– Is approved to receive benefits under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision in the 2019-2020, 2020-2021, or 2021-2022 school year;

– Received a Federal Pell Grant during the current award year; or

– Meets the eligibility criteria for a participating provider’s existing low-income program.

The benefit provides a discount of up to $30 per month toward internet service for eligible households and up to $75 per month for households on qualifying Tribal lands. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute more than $10 and less than $50 toward the purchase price. Limits one monthly service discount and one device discount per household

For more information on the program, visit NCC’s resource page, the FCC’s website, or USAC’s website.

The Lifeline Program

Next Century Cities’ Lifeline Explainer

The Lifeline Program is the FCC’s program to help make communications services more affordable for low-income consumers. Consumers can receive up to a $9.25 monthly discount on service for eligible low-income broadband subscribers (up to $34.25 for those on Tribal lands). The Lifeline Program also provides $5.25 for monthly voice-only service.

There are two ways to become eligible for the Lifeline Program. First, consumers can qualify for Lifeline if their income is 135% or less than the Federal Poverty Guidelines. If applying for Lifeline using this method proof of income may be required, such as a tax return or pay stub. Second, a household is eligible for Lifeline if anyone in the household participates in one of the following programs:

• Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps
• Medicaid
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Veterans Pension and Survivors Benefit

To apply for Lifeline, a consumer must generally use the National Verifier application system. The National Verifier is a centralized system established by the FCC and operated by USAC that verifies Lifeline applicants’ eligibility and recertifies subscriber eligibility annually. Consumers who would like assistance from a service provider when applying can use the “Companies Near Me” tool to locate a Lifeline program service provider in their area.

To learn more about the Lifeline program you can visit the FCC’s website or USAC’s website.

Next Century Cities’ State Funding Contacts and Resources Glossary