North Carolina lawmakers consider $750M broadband proposal
(The Center Square) – The North Carolina Senate is expected to take up a bill described as one of the largest efforts to expand broadband internet in the nation.
House Bill 947 sets aside $750 million in federal aid to expand internet access across North Carolina. It combines county and state funds from the American Rescue Plan Act (ARPA) to develop broadband infrastructure in every corner of the state.
“With additional funding coming from the federal government, we have a tremendous opportunity to close our state’s digital divide,” said Rep. Dean Arp, R-Union, who introduced the bill in the House. “This legislation capitalizes on these resources and puts forth a bold and unprecedented investment to connect all North Carolinians to high-speed internet access.”
At least 1.1 million North Carolina households lack internet access, according to the U.S.Census Bureau. The bill creates the Completing Access to Broadband (CAB) Program, using $400 million of federal aid for broadband expansion in local counties. It also allocates $350 million to the state’s Growing Rural Economies with Access to Technology (GREAT) program.
The ARPA includes about $7.2 billion for an Emergency Connectivity Fund for governments to secure internet access for remote learning. It also gives states and local governments the flexibility to use funds from other programs in the measure to expand internet connectivity.
The GREAT program provides grants to private broadband service providers to update internet bandwidth in unserved areas of North Carolina. The North Carolina General Assembly currently allocates $15 million a year for the program.
While the GREAT program is a provider-led partnership, the new CAB program would be county-led and would expand connectivity for unserved and underserved areas, Arp said. Counties would select broadband providers through a bid process under the CAB program.
The provider can cover up to 30% of the project costs under the CAB program. If the county receives less than $8 million in federal aid for the project, the provider must cover at least 15% of the costs.
The state would provide 35% from the CAB fund, and the county would have to cover at least 35% of the cost. Counties can use ARPA funding or other unallocated funding to cover their portion. No county can receive more than $4 million from the CAB fund during a fiscal year.
During House debate over the measure Wednesday, Rep. John Autry, D-Mecklenburg, said he was concerned about the absence of policy to ensure equity and affordability. He said lawmakers need to ensure North Carolinians receive internet education, as well.
“What’s the affordability going to be like when the federal money that’s going to be used to help cover the cost of their services dries up, then what do those families and households do to continue to pay for that internet access?'” Autry asked. “I have pretty good internet access, but it’s still constantly over $80 a month, and that’s something that does have an impact on my household’s final monthly statement.”
Gov. Roy Cooper announced May 19 his proposal to spend $1.2 billion of ARPA aid on broadband expansion.
Cooper’s broadband proposal earmarks $600 million for infrastructure deployment. It provides $240 million to support low-income and other affordability programs and $165 million for digital literacy. The additional $15 million would cover administrative costs over the next four years.
The House unanimously approved HB 947, 109-0, on Wednesday. It now heads to the Senate for consideration.
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