Thanks to Ann Higgins for sending me an article in USA Today, Stimulus funds for high-speed Internet access tangled up. Some readers will be acutely aware of what’s happening with the funding (or more to the point we’re acutely aware of what’s not happening) with the grants – but for those who aren’t this is a good outline of what’s happened, what hasn’t, what’s predicted to happen and even addresses why. For those living the situation, it’s an interesting read too. The more cynical in the bunch will enjoy the comments.

The article describes the situation in a nutshell:

The goal was to quickly create tens of thousands of jobs and connect millions of poor and rural communities to broadband, a technology that’s essential for economic development, modern medicine and education.

But officials had no idea that the demand for the cash would be so overwhelming. They also were bombarded with questions and challenges from large cable and phone companies including Comcast, Time Warner Cable and AT&T.

The flood of response has led to about 7 percent of the funding being dispersed thus far. Many seem to doubt the agencies (NTIA and RUS) ability to dole out fund before the September 2010 deadline, but the NTIA and RUS maintain they can do it. Craig Settles had a nice line describing the problem…

The effort to spend that money quickly but responsibly is like “trying to use a fire hose with a garden hose nozzle,” says Craig Settles, an independent consultant who helps companies develop broadband strategies. “Getting broadband to the American public is not going to be easy.”

NTIA Administrator Lawrence Strickling admits, “We’re learning as we go.” I hope that means they have more money to spend later and will be able to put these lessons to good use.