New Bill Proposes $1 Billion Yearly to Bring 100 Mbps Internet to Rural America by 2030

The "ReConnecting Rural America Act of 2025" is looking to seriously upgrade internet access in less populated parts of the country. This bill proposes to amend the nearly century-old Rural Electrification Act of 1936, earmarking a hefty sum – $650 million in grants and $350 million in loans annually from fiscal years 2026 through 2030. The main goal? To fund the construction and improvement of broadband infrastructure in rural areas, defined generally as places with fewer than 20,000 residents, ensuring they get internet speeds of at least 100 Megabits per second (Mbps) for both downloads and uploads.

What's on the Table for Rural Connectivity?

This legislation isn't just throwing money at the problem; it's setting specific targets. Projects funded under this act must deliver that crucial 100/100 Mbps speed, a significant jump for many rural communities. Think about what that means: smoother video calls for remote work or school, quicker access to online health services, and the ability for local businesses to actually compete online. The bill, as outlined in its amendments to Section 601 of the Rural Electrification Act, gives priority to projects in areas where at least 90% of households currently don't even have 100 Mbps download and 20 Mbps upload speeds. Extra preference points could go to really remote spots (areas with fewer than 10,000 residents), areas experiencing population loss, those with a high percentage of low-income families, or communities isolated from other significant population centers.

Who Gets a Slice of the Pie, and What's the Catch?

Eligible applicants for these funds include state and local governments, Indian Tribes, cooperatives, and corporations. But there are a few strings attached. Whoever gets the money has to promise to complete their broadband project within five years. They also need to sign up to participate in federal internet affordability programs, like the Affordable Connectivity Program (referenced as 47 U.S.C. 1752(b)) or the Lifeline program, which helps lower monthly internet bills for qualifying households. To prevent a few big players from hogging all the funds, the bill limits any single large provider (defined as serving at least 20% of U.S. households) or any single state to no more than 15% of the total cash authorized for that fiscal year. There's also an "overbuilding" restriction: funds can't be used to build new networks in areas where another entity, which has already received a government broadband grant or loan (from specific federal or state programs), currently provides at least 100 Mbps downstream and 20 Mbps upstream service to at least 75% of households. Some projects, especially those serving Tribal organizations, colonias, persistent poverty counties, or socially vulnerable communities, might qualify for grant-only awards. Other grant recipients might need to cover up to 25% of the project cost themselves, though the Secretary has discretion on this cost-share requirement.

The Nitty-Gritty: Funding, Timelines, and Sunsets

The bill authorizes a total of $1 billion per year for five years (fiscal years 2026 through 2030) – that's $650 million annually for grants, loans, and combinations thereof, and an additional $350 million annually for direct loans under existing requirements. A small slice of the appropriated funds, between 3% and 5%, is set aside for technical assistance and training to help eligible entities navigate the application process and project management, with no more than 5% of the total appropriation allowed for administration. The Secretary overseeing this can also review and adjust that minimum 100/100 Mbps broadband service standard at least every two years to keep up with technological advancements. Importantly, this program has an end date: no new grants or loans can be made after September 30, 2030. The bill also tidies up some old funding by rescinding unobligated balances from Section 779 of the Consolidated Appropriations Act, 2018 (which established an earlier broadband pilot program) and re-appropriating that money for these new efforts. That Section 779 will cease to have effect 120 days after this Act is enacted.