119-hr3280

[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 appropriated to 
 carry out this section for a fiscal year shall be used 
 for technical assistance and training under this 
 paragraph.
 ``

    (e) Broadband Service.--
 ``

    (1) In general.--Subject to paragraph

    (2) , for purposes 
 of this section, the minimum acceptable level of broadband 
 service for a rural area to be deemed served for purposes of 
 this section shall be via terrestrial wireline or licensed 
 wireless networks with at least--
 ``
        (A) a 100-Mbps downstream transmission capacity; 
 and
 ``
        (B) a 20-Mbps upstream transmission capacity.
 ``

    (2) Adjustments.--At least once every 2 years and more 
 frequently as the Secretary deems necessary and appropriate, 
 the Secretary shall review, and may adjust through notice 
 published in the Federal Register--
 ``
        (A) the minimum acceptable level of broadband 
 service established under paragraph

    (1) for an area to 
 be deemed unserved and thus eligible for an award under 
 this section; and
 ``
        (B) the broadband buildout requirements under 
 paragraph

    (3) , to ensure that high quality, cost-
 effective broadband service is provided to rural areas.
 ``

    (3) Broadband buildout requirements.--
 ``
        (A) In general.--The term `broadband buildout 
 requirement' means the level of broadband service an 
 applicant receiving assistance under this section must 
 agree, at the time the application is finalized, to 
 provide for the duration of any project-related 
 agreement between the applicant and the Secretary.
 ``
        (B) Minimum requirement.--The broadband buildout 
 requirement shall, at a minimum, deliver 100 Mbps 
 symmetrical throughout for each rural household in the 
 proposed service area. The Secretary may increase this 
 minimum requirement for the performance broadband 
 service in considering new applications.
 ``
            (C) Substitute service standards for unique 
 service territories.--If an applicant shows that it 
 would be cost prohibitive to meet the broadband 
 buildout requirements established under this paragraph 
 for the entirety of a proposed service territory due to 
 the unique characteristics of the proposed service 
 territory, the Secretary and the applicant may agree to 
 utilize substitute standards for any unserved portion 
 of the project that should continue to consider the 
 best technology available to meet the needs of the 
 residents in the unserved area.
 ``

    (f) Technological Neutrality.--For purposes of determining 
whether to provide assistance for a project under this section, the 
Secretary shall use criteria that are technologically neutral and 
criteria that ensures the technology can meet program broadband 
buildout requirements and the evolving needs of rural households and 
businesses, including precision agriculture.
 ``

    (g) Terms and Conditions for Loans and Loan Guarantees.--
 ``

    (1) In general.--Notwithstanding any other provision of 
 law, a loan or loan guarantee under this section shall--
 ``
        (A) bear interest at an annual rate of, as 
 determined by the Secretary--
 ``
            (i) in the case of a direct loan, a rate 
 equivalent to--
 ``
            (I) the cost of borrowing to the 
 Department of the Treasury for 
 obligations of comparable maturity; or
 ``
            (II) 4 percent; and
 ``
            (ii) in the case of a guaranteed loan, 
 the current applicable market rate for a loan 
 of comparable maturity; and
 ``
        (B) have a term of such length, not exceeding 35 
 years, as the borrower may request, if the Secretary 
 determines that the loan is adequately secured.
 ``

    (2) Recurring revenue.--The Secretary shall consider the 
 recurring revenues of the entity at the time of application in 
 determining an adequate level of credit support.
 ``

    (h) Adequacy of Security.--
 ``

    (1) In general.--The Secretary shall ensure that the type 
 and amount of, and method of security used to secure, any loan 
 or loan guarantee under this section is commensurate to the 
 risk involved with the loan or loan guarantee, particularly in 
 any case in which the loan or loan guarantee is issued to a 
 financially strong and stable entity, as determined by the 
 Secretary.
 ``

    (2) Determination of amount and method of security.--In 
 determining the amount of, and method of security used to 
 secure, a loan or loan guarantee under this section, the 
 Secretary shall consider reducing the security in a rural area 
 that does not have broadband service.
 ``
            (i) Payment Assistance for Certain Loan and Grant Recipients.--
 ``

    (1) Use of grant funds.--The Secretary may use the funds 
 appropriated for a grant under this title for the cost (as 
 defined by 

section 502 of the Congressional Budget Act of 1974) 
 of providing assistance under paragraph

    (2) of this subsection.
 ``

    (2) Payment assistance.--When providing a grant under 
 this title, the Secretary, at the sole discretion of the 
 Secretary, may make--
 ``
        (A) a subsidized loan, which shall bear a reduced 
 interest rate at such a rate as the Secretary 
 determines appropriate to meet the objectives of the 
 program; or
 ``
        (B) a payment assistance loan, which shall--
 ``
            (i) require no interest and principal 
 payments while the borrower is--
 ``
            (I) in material compliance with 
 the loan agreement; and
 ``
            (II) meeting the milestones and 
 objectives of the project agreed to 
 under paragraph

    (3) ; and
 ``
            (ii) require such nominal periodic 
 payments as the Secretary determines to be 
 appropriate.
 ``

    (3) Agreement on milestones and objectives.--With respect 
 to payment assistance provided under paragraph

    (2) , before 
 entering into the agreement under which the payment assistance 
 will be provided, the applicant and the Secretary shall agree 
 to milestones and objectives of the project.
 ``

    (4) Amendment of milestones and objectives.--The 
 Secretary and the applicant may jointly agree to amend the 
 milestones and objectives agreed to under paragraph

    (3) .
 ``

    (5) Considerations.--In deciding to utilize the payment 
 assistance authority under paragraph

    (2) , the Secretary shall 
 consider whether or not the payment assistance will--
 ``
        (A) improve the compliance of the grantee with 
 any commitments made through the grant agreement;
 ``
        (B) promote the completion of the broadband 
 project;
 ``
            (C) protect taxpayer resources; and
 ``
            (D) support the integrity of the broadband 
 programs administered by the Secretary.
 ``

    (6) Limitations on payment assistance.--The Secretary may 
 not make a payment assistance loan under paragraph

    (2)
        (B) to an 
 entity receiving a grant under this section that is a recipient 
 of a loan under title I or II that is associated with the 
 grant.
 ``

    (j) Funding.--
 ``

    (1) Limitations on authorization of appropriations.--
 There is authorized to be appropriated to the Secretary to 
 carry out this section not more than $500,000,000 for each of 
 fiscal years 2026 through 2030, to remain available until 
 expended.
 ``

    (2) Allocation of funds.--
 ``
        (A) In general.--From amounts made available for 
 each fiscal year under this subsection, the Secretary 
 shall--
 ``
            (i) establish a national reserve for 
 loans and loan guarantees to eligible entities 
 in States under this section; and
 ``
            (ii) allocate amounts in the reserve to 
 each State for each fiscal year for loans and 
 loan guarantees to eligible entities in the 
 State.
 ``
        (B) Amount.--The amount of an allocation made to 
 a State for a fiscal year under subparagraph
        (A) shall 
 bear the same ratio to the amount of allocations made 
 for all States for the fiscal year as--
 ``
            (i) the number of communities with a 
 population of 2,500 or fewer inhabitants in the 
 State; bears to
 ``
            (ii) the number of communities with a 
 population of 2,500 or fewer inhabitants in all 
 States.
 ``
            (C) Unobligated amounts.--Any amounts in the 
 reserve established for a State for a fiscal year under 
 subparagraph
        (B) that are not obligated by April 1 of 
 the fiscal year shall be available to the Secretary to 
 make loans and loan guarantees under this section to 
 eligible entities in any State, as determined by the 
 Secretary.
 ``

    (k) Termination of Authority.--No grant, or loan, or loan 
guarantee may be made under this section after September 30, 2030.''.

    (b) Effective Date.--The amendment made by subsection

    (a) shall 
take effect on October 1, 2025.
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