PolicyBrief
H.R. 3280
119th CongressMay 8th 2025
Rural Broadband Modernization Act
IN COMMITTEE

This act modernizes federal support for building out high-speed, symmetrical 100 Mbps broadband internet infrastructure in rural areas through prioritized grants, loans, and guarantees.

Randy Feenstra
R

Randy Feenstra

Representative

IA-4

LEGISLATION

Rural Broadband Bill Demands 100 Mbps Symmetrical Speeds by 2030, Prioritizing the Most Isolated Towns

The new Rural Broadband Modernization Act is a major update to how the government handles high-speed internet deployment in the countryside. Starting October 1, 2025, it authorizes the Secretary to offer grants, loans, and loan guarantees to build or improve broadband in rural areas. The big takeaway is the new, high standard: any project getting federal money must deliver a minimum of 100 Megabits per second (Mbps) symmetrical speed—that’s 100 Mbps down and 100 Mbps up—to every household it serves. This is a huge leap from older standards and aims to future-proof rural connectivity.

The 100/100 Rule: What It Means for Your Zoom Call

For most people, the old definition of 'high-speed internet' meant fast downloads but slow uploads. Think about trying to upload a large work file or participating in a video conference where your face keeps freezing. The requirement for 100 Mbps symmetrical changes that game entirely. This means the internet service will be equally fast in both directions. For a rural small business owner trying to upload inventory data or a student doing remote learning, this level of service is essential for functioning in the modern economy. Projects must hit this 100/100 benchmark and finish construction within five years of receiving the award.

Who Gets the Money First?

The bill sets up a clear priority system for funding that favors the most technologically isolated communities. The absolute highest priority goes to areas that currently don't even have 25 Mbps down and 3 Mbps up service—the truly unserved folks. After that, they look at projects that serve the largest number of rural households and groups with a proven track record of providing utility service in that state. This is a smart move designed to ensure that taxpayer money first addresses the biggest gaps in service, rather than just upgrading areas that already have decent connectivity.

Secondary priority factors also focus on communities facing unique challenges, such as those with fewer than 10,000 residents, those losing population, or those with high poverty rates. They also specifically prioritize projects that support precision agriculture with fixed and mobile broadband. This means farmers relying on sensor data, drone imagery, and automated equipment will get a boost, making their operations more efficient and competitive.

Funding Limits and the Fine Print

There are important rules about who can get these funds. First, the program is authorized to spend up to $500 million annually between fiscal years 2026 and 2030. Generally, grants can only cover up to 75% of a project’s cost, though the Secretary can provide 100% funding in extremely low-density areas (fewer than 7 households per square mile). This flexibility acknowledges the sheer difficulty and cost of running fiber deep into the sticks.

Crucially, the bill restricts the big players: large telecommunications or broadband providers that serve 20% or more of U.S. households cannot receive more than 15% of the total funds in any given year. This provision is designed to ensure that the bulk of the funding goes to smaller, local, or regional providers who are already invested in serving these specific rural communities, preventing the biggest companies from cornering the market.

The Need for Speed and Secretary’s Discretion

While the buildout standard is 100/100, the bill establishes a lower threshold for what counts as “served” right now: 100 Mbps down and 20 Mbps up. If a project is applying for a grant, 90% of the households in the service area must currently be below this 100/20 mark. This is an important detail, as it means areas that have decent but not great service (say, 50/10) will have a harder time getting grant money, focusing the limited funds on the truly underserved.

However, the Secretary is given significant authority here. They must review and potentially update the minimum acceptable service standards every two years to keep pace with technology. They also have the power to approve the technology used and, importantly, to define what counts as a “rural area” and exclude certain populations. This discretion is necessary to make the program flexible, but it’s an area that will require close monitoring to ensure the definitions don’t change in a way that excludes genuinely needy communities or favors one technology over another.