USDA Invests $28 Million in Broadband for Rural Virginia Communities |
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BUCKINGHAM, Va., Feb. 28, 2020 – Today, U.S. Department of Agriculture (USDA) Rural Development State Director for Virginia Beth Green announced USDA has invested $28 million in high-speed broadband infrastructure for more than 17,000 rural households in Virginia. This is one of many funding announcements in the first round of USDA’s ReConnect Pilot Program investments.
“High-speed broadband internet connectivity, or e-Connectivity, is essential to economic development, quality of life and overall prosperity in any community,” Green said. “Under the leadership of President Trump and Agriculture Secretary Perdue, USDA is committed to being a strong partner to help rural communities deploy this essential infrastructure, because when rural America thrives, all of America thrives.”
Central Virginia Electric Cooperative will use a $28 million ReConnect Program loan and grant combination to construct a fiber-to-the-premises network encompassing 704 square miles. The service area is expected to reach 17,023 households, 35 pre-subscribed businesses, 20 pre-subscribed farms, 15 educational facilities, 15 critical community facilities and six health care centers in Albemarle, Amherst, Appomattox, Buckingham, Campbell, Cumberland, Fluvanna, Greene, Goochland, Louisa, Orange, Prince Edward and Powhatan counties.
Background:
In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. On Dec. 13, 2018, Secretary Perdue announced the rules of the program, called “ReConnect,” including how the loans and grants will be awarded to help build broadband infrastructure in rural America. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect Program funding products: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. Additional investments in all three categories will be made in the coming weeks.
These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. Insufficient service is defined as connection speeds of less than 10 megabits per second (Mbps) download and 1 Mbps upload.
In December 2019, Agriculture Secretary Perdue announced USDA will be making available an additional $550 million in ReConnect funding in 2020. USDA will make available up to $200 million for grants, up to $200 million for 50/50 grant/loan combinations, and up to $200 million for low-interest loans. The application window for this round of funding opened on Jan. 31, 2020. Applications for all funding products will be accepted in the same application window, which will close on March 16, 2020.
A full description of 2020 ReConnect Pilot Program funding is available on page 67913 of the Dec. 12, 2019, Federal Register (PDF, 336 KB). To learn more about eligibility, technical assistance and recent announcements, visit www.usda.gov/reconnect.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.
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