MN DEED 2022 Broadband Two-Pager - 3-23-2022 THE WALZ-FLANAGAN BUDGET | TO MOVE MINNESOTA FORWARD | PROGRESS TOWARD MINNESOTA’S BROADBAND GOALS | P.1
PROGRESS TOWARD MINNESOTA’S BROADBAND GOALS
Minnesota’s Border-to-Border Broadband Grant Program Summary•Over $126 million in state grant funds awarded to 179 projects; service to over 57,000 homes and businesses•6 grant rounds beginning in 2014•We expect to launch FY22 grant of $35 million in federal funding this spring, and the FY23 grant of $35 million in
federal funding in July.
Federal Funding Administered by Office of Broadband Development (OBD):•$180.7 million in American Rescue Plan Act Capital Projects Fund (ARPA CPF)»$70 million appropriated to Border-to- Border by the Minnesota Legislature in the last session.»Allocation of remaining funds to be determined.•$100 million in Infrastructure Investment & Jobs Act (IIJA)’s Broadband Equity, Access and Deployment (BEAD) Act
»Plus an additional amount yet to be determined by the National Telecommunications Information Administration
(NITA) based on the number of unserved locations with 25/3 service passed on the new Federal Communications
Commission maps.
What We Know
1. Minnesota has approximately 240,000 households that lack wireline access to 100/20 broadband service.
2. The estimated cost to connect these locations exceeds
$1.3 billion.
3. Public-private partnerships are needed to ensure
broadband infrastructure can reach the remaining
households and locations.
4. The Walz-Flanagan budget to Move Minnesota Forward
proposes an additional $170 million in state investment
to expedite broadband deployment in underserved
areas of our state.
Infrastructure – Path to Finish
Where we are today
•240,000 households without access to 100/20
•Estimated total cost to connect MN: $1.3 billion
•State’s estimated share of cost: $995 million
[75% of $1.3B - 25% grantee match]
• ARPA CPF .................................................$70 million
• NTIA BEAD (IIJA) initial allocation .........$100 million
• NTIA BEAD (IIJA) ..................................................TBD
• RDOF Est. 80%.........................................$326 million
• Total Estimated Federal Funding ........$496 million
+ additional NTIA BEAD
•Estimated $499 million balance to connect MN
•Proposed MN investment in B2B: $170 million
•Local investment of ARPA funds by cities and counties.
•Anticipate additional NTIA BEAD (IIJA) funding after FCC map update.
•Anticipate federal funding via various USDA & FCC programs that award grants directly to providers, communities, tribes.
•Anticipate continued private investment by MN’s broadband providers.
Federal funding on the horizon
Path to the finish
Area 2022 Goal: 25/3 2026 Goal: 100/20
% of state
covered
# of
households
without
access
% of state
covered
# of
households
without
access
Statewide 92%171,000 89%240,000
Rural-only 82%161,000 75%224,000
THE WALZ-FLANAGAN BUDGET | TO MOVE MINNESOTA FORWARD | PROGRESS TOWARD MINNESOTA’S BROADBAND GOALS | P.2
Digital Equity: Ensuring all individuals and
communities have the information technology
capacity needed for full participation in our
society, democracy and economy. Digital Equity
is necessary for civic and cultural participation, employment,
lifelong learning, and access to essential services.
Digital Inclusion: Refers to the activities necessary to ensure
that all individuals and communities, including the most
disadvantaged, have access to and use of Information and
Communication Technologies. This includes:
•affordable, robust broadband internet service;•internet-enabled devices that meet the needs of the user;•access to digital literacy training;•quality technical support; and•applications and online content designed to enable andencourage self-sufficiency, participation and collaboration.
Digital Literacy: The ability to use information and
communication technologies to find, evaluate, create, and
communicate information, requiring both cognitive and
technical skills.
Digital Navigators: Digital navigators are trusted guides who assist community members in internet adoption and the use of computing devices. Digital navigation services include ongoing assistance with affordable internet access, device acquisition, technical skills, and application support.
DEFINITIONS
25/3: 25 megabits per second (Mbps) download and 3
Mbps upload. 2022 speed goal in MN statutes.
100/20: 100 Mbps download and 20 Mbps upload. 2026
speed goal in MN statutes.
Underserved: Areas of MN in which households or
businesses lack access to wire-line broadband service at
speeds of at least 100/20 Mbps.
Unserved: Areas of MN in which households or businesses
lack access to wire-line broadband service, as defined by
FCC, which is currently 25/3 Mbps.
ABBREVIATIONS
B2B: MN’s Border to Border Broadband Infrastructure
Grant Program
EBB Program: Emergency Broadband Benefit
EDA: US Economic Development Administration
FCC: Federal Communications Commission
NTIA: National Telecommunications and Information
Administration.
OBD: MN Office of Broadband Development
TBD: To be determined.
USDA: United States Department of Agriculture
Mapping•OBD completed its 7th year of mapping broadband
access & speeds. Work continues through a contract
with Connected Nation, a non-profit with considerable
experience working with MN broadband providers, as
required in state statute.•Funding for mapping activities comes from the
administrative allowance of B2B Grant.•With the grant program being funded with federal ARPA
monies for the next two years, OBD must secure federal
approval to use funds for broadband mapping in order to
continue the mapping.
Federal Programs
ACB Program: Affordable Connectivity Benefit Program.
$30/month consumer benefit. Long-term replacement for
EBB. Administered by FCC.
ARPA: American Rescue Plan Act. Administered by US
Treasury.
ARPA State and Local Fiscal Recovery Funds
•$1.1B unspent MN allocation to be discussed in 2022
session.•Broadband infrastructure investment is an allowed use.•Some local governments are funding broadband
projects.•To date, no state fiscal recovery funds allocated for
broadband in MN.
ARPA Sec. 604 Capital Projects Fund MN allocation:
$180,702,620. Includes the $70M appropriated for B2B
grant program. Presumptively Eligible Projects:
•Broadband infrastructure projects.•Digital connectivity technology projects (purchase and/
or installation of devices & equipment to facilitate
broadband internet access).•Multi-purpose community facility projects (projects to
construct or improve buildings designed to jointly and
directly enable work, education, and health monitoring).
IIJA: Infrastructure Investment and Jobs Act
IIJA BEAD Act: Broadband Equity, Access & Deployment Act.
Administered by NTIA.
•Broadband infrastructure funding for states.•Base amount of $100M per state and an additional
amount TBD based on number of unserved locations
(locations lacking 25/3).
IIJA Digital Equity Act: Administered by NTIA. MN
allocations TBD. Provides funding for:
•Creation of a Digital Equity Plan.•State-administered digital equity grant program.•National digital equity grant program.
RDOF: Rural Digital Opportunity Fund. Funding for
broadband deployment, administered by the FCC.
Anticipated that MN broadband providers will receive about
$408 million.