H.R. 3280

[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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