To bridge the digital divide and ensure universal access to high-speed broadband, the White House has announced the allocation of $42 billion to all 50 states and U.S. territories, Reuters reported on Monday. The funding, authorized by President Joe Biden’s $1 trillion 2021 infrastructure law, aims to address the gaps in internet connectivity nationwide. The initiative, known as the Broadband Equity Access and Deployment Program, will leverage a newly released Federal Communications Commission coverage map to identify areas with inadequate broadband access. The funding distribution reflects the urgent need to address connectivity issues in both populated and rural regions.
Funding Distribution & High-Speed Internet
Texas and California, the most populous states in the U.S., have received the largest funding shares, with Texas being allocated $3.1 billion and California receiving $1.9 billion. Surprisingly, less populous states like Virginia, Alabama, and Louisiana have also secured significant funding due to the lack of broadband infrastructure in their rural areas. Each state will receive a minimum of $107 million, ensuring a comprehensive nationwide approach, as per Reuters.
During a White House address, President Biden emphasised the significance of high-speed internet access, stating that it is just as essential as electricity, water, and other basic services in today’s economy. The funding marks the largest-ever investment in high-speed internet, aiming to make internet access more equitable and inclusive.
Impact of Broadband Inequality & Future Plans
The COVID-19 pandemic highlighted the digital divide, especially when schools shifted to online learning, leaving students without proper connectivity at a disadvantage. The lack of broadband access in rural and low-population areas has been a persistent issue, preventing economic growth and hindering educational opportunities. This initiative seeks to bridge these gaps, ensuring that every American can participate fully in the digital economy.
States are expected to submit their initial plans later this year, which will unlock 20 per cent of the allocated funding. The plans will outline strategies to improve broadband access in underserved areas. Once the plans are finalised, the remaining funds will be released, which may extend until 2025.
Biden’s Economic Policies & Public Opinion
The allocation of funds for broadband access is part of President Biden’s broader economic agenda. In an effort to promote his economic policies, Reuters reported that the President will deliver a major economic speech in Chicago, outlining his vision for ‘Bidenomics’. This initiative, alongside other legislative efforts, will shape the public’s perception of his handling of the economy, which will be a focal point in the 2024 election.
According to a recent Reuters/Ipsos poll, 54 per cent of Americans disapprove of President Biden’s overall job performance, while only 35 per cent approve of his handling of the economy. The upcoming election is expected to serve as a referendum on Biden’s economic policies, with job creation and low unemployment being key factors. Concerns over elevated inflation and potential recessionary impacts from higher interest rates have added complexity to the economic landscape.
Broadband providers such as Verizon, Comcast, Charter Communications, and AT&T have been hesitant to expand their services to low-population rural communities due to the expensive infrastructure investments and limited subscriber base. This has further contributed to the digital divide, and the current funding aims to incentivize providers to extend their services to these underserved areas.
(With Inputs from Reuters)
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