Bringing Broadband to Rural Areas

One of the big policy issues regarding broadband and telecom is making sure that Americans in rural or geographically remote areas of the country receive the same quality services available to Americans in more densely populated areas.  One of the programs that helps meet that objective is the Rural Utilities Service, which operates under the U.S. Department of Agriculture.

On Tuesday, the House Appropriations Subcommittee on Agriculture, Rural Development, FDA and Related Agencies held a hearing on FY09 rural development appropriations. Thomas Dorr, the undersecretary of agriculture for Rural Development, testified that the Administration's budget request reflects "the mission of USDA Rural Development to increase sustainable economic opportunities and improve the quality of life in rural communities;" that includes economic opportunities like those facilitated by the RUS's broadband loan program. 

Chairman DeLauro and many of the committee members questioned Mr. Dorr on the broadband loan program and the contingency plan if the farm bill is not reauthorized. In addition, committee members pressed Mr. Dorr to explain the latest USDA loan, awarded just last week to Open Range for $267 million; that loan will provide WiMax to rural communities in 17 states. While Dorr explained the benefits of the loan, some members expressed their displeasure with its size and timing; the loan represents 90% of all funds appropriated for the program, and members questioned whether or notthe Rural Utilities Service could manage a project of this size and scope. The hearing concluded with Chairman DeLauro urging Mr. Dorr "to be vigilant [and to] ensure the federal dollars are going to be safeguarded."