President Biden has announced a $42.5 billion plan to provide high-speed internet access to every American household by 2030. The funds, already allocated by Congress through the Bipartisan Infrastructure Law, will be distributed over the next two years through the Broadband Equity, Access, and Deployment (BEAD) program. The initiative is part of Biden’s “Investing in America” tour, aimed at promoting his legislative wins on infrastructure, the economy, and climate change ahead of his 2024 reelection campaign.
Each state will receive a minimum of $107 million, with 19 states receiving over $1 billion. Texas, for one, is slated to receive more than $3.3 billion under the program. White House officials have compared the plan to Franklin D. Roosevelt’s effort to bring electricity to rural America in the 1930s. More than 7% of the country, or over 8.5 million homes and small businesses, are considered underserved, with internet speeds below the government’s standards of at least 25 megabits per second (Mbps) for downloads and 3 Mbps for uploads.
States have until the end of the year to submit proposals outlining how they plan to use BEAD money, which won’t be distributed until those plans are approved. Once the Commerce Department signs off on the initial plans, states can award grants to telecommunications companies, electric cooperatives, and other providers to expand internet infrastructure. Under the rules of the program, states must prioritize connecting predominantly unserved areas before bolstering service in underserved areas and in schools, libraries, or other community institutions.
The funding amounts depend primarily on the number of unserved locations in each jurisdiction or those locations that lack access to internet download speeds of at least 25 Mbps and upload speeds of 3 Mbps. The government’s current standards for download and upload speeds are 25 and 3 Mbps, respectively, and more than 7% of American households are below this mark.
Secretary of Commerce Gina Raimondo said, “Whether it’s connecting people to the digital economy, manufacturing fiber optic cable in America or creating good-paying jobs building internet infrastructure in the states, the investments we’re announcing will increase our competitiveness and spur economic growth across the country for years to come.”
Biden emphasized that high-speed internet is no longer a luxury but an “absolute necessity” and pledged that every household in the nation would have access by 2030 using cables made in the U.S. He added that his administration is working with service providers to bring down costs on what is now a household utility—like water or gas—but often remains priced at a premium.
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