USDA Invests $3.4 Million in Broadband for Rural Illinois Communities

CHAMPAIGN, Ill., Feb. 14, 2020 – Today, U.S. Department of Agriculture (USDA) Rural Development Illinois State Director Douglas Wilson announced USDA is investing $3.4 million to create or improve rural e-Connectivity for 603 rural households, 12 farms and a business in Hamilton County. This high-speed broadband infrastructure project is one of many funding announcements in the first round of USDA’s ReConnect Pilot Program investments.

“High-speed broadband is critical for the prosperous future of rural communities,” Wilson said. “It is essential for economic development and improved access to health care and educational resources. President Trump and Agriculture Secretary Perdue have made the deployment of this much-needed service a priority. I congratulate Hamilton County Telephone Cooperative on this award and look forward to seeing more communities get access to this vital infrastructure.”

Hamilton County Telephone Cooperative Corporation Inc. will replace copper wire with fiber-optic cable wire. The upgrade will benefit 146 customers in the area. The company provides broadband internet access, entertainment video and voice services to 1,600 customers over approximately 467 square miles.

Background:

In March 2018, Congress provided $600 million to USDA to expand broadband infrastructure and services in rural America. On Dec. 13, 2018, Secretary Perdue announced the rules of the program, called “ReConnect,” including how the loans and grants will be awarded to help build broadband infrastructure in rural America. USDA received 146 applications between May 31, 2019, and July 12, 2019, requesting $1.4 billion in funding across all three ReConnect Program funding products: 100 percent loan, 100 percent grant, and loan-grant combinations. USDA is reviewing applications and announcing approved projects on a rolling basis. Additional investments in all three categories will be made in the coming weeks.

These grants, loans and combination funds enable the federal government to partner with the private sector and rural communities to build modern broadband infrastructure in areas with insufficient internet service. Insufficient service is defined as connection speeds of less than 10 megabits per second (Mbps) download and 1 Mbps upload.

In December 2019, Agriculture Secretary Perdue announced USDA will be making available an additional $550 million in ReConnect funding in 2020. USDA has available up to $200 million for grants, up to $200 million for 50/50 grant/loan combinations, and up to $200 million for low-interest loans. The application window for this round of funding opened on Jan. 31, 2020. Applications for all funding products will be accepted in the same application window, which will close on March 16, 2020.

A full description of 2020 ReConnect Pilot Program funding is available on page 67913 of the Dec. 12, 2019, Federal Register (PDF, 336 KB). To learn more about eligibility, technical assistance and recent announcements, visit www.usda.gov/reconnect.

In April 2017, President Donald J. Trump established the Interagency Task Force on Agriculture and Rural Prosperity to identify legislative, regulatory and policy changes that could promote agriculture and prosperity in rural communities. In January 2018, Secretary Perdue presented the Task Force’s findings to President Trump. These findings included 31 recommendations to align the federal government with state, local and tribal governments to take advantage of opportunities that exist in rural America. Increasing investments in rural infrastructure is a key recommendation of the task force. To view the report in its entirety, please view the Report to the President of the United States from the Task Force on Agriculture and Rural Prosperity (PDF, 5.4 MB). In addition, to view the categories of the recommendations, please view the Rural Prosperity infographic (PDF, 190 KB).

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.

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USDA is an equal opportunity provider, employer, and lender.

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By: USDA Market Reports