Category Archives: Funding

OBD Broadband Update June 3: Line Extension, Task Force meeting and updates

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From the MN Office of Broadband Development…

Broadband Matters: Office of Broadband Development Updates

  • Line Extension Connection Program updates
  • Broadband Task Force, May meeting recap
  • OBD resource update, new Maps and Data, Environmental Permitting and Reports webpage
  • Broadband in the news

Line Extension Connection Program updates

The bidding window for the fast-tracked Round 5 closed May 22, 2026 and submitted bids are under review and initial award offers are being sent.
Registration remains open for residents and businesses for future rounds of the program. For assistance completing the application or to request a paper form to complete, please call 651-259-7610 or email DEED.broadband@state.mn.us.

OBD expects to announce a sixth round of the program with standard timelines using state funds later in 2026. More information and registration are available on the Line Extension Connection Program webpage.

Broadband Task Force, May meeting recap

The Broadband Task Force met virtually on Thursday May 21 and heard presentations from two Tribal broadband experts on workforce development, supply chain issues, and broadband expansion: Godfrey Enjady (President of the National Tribal Telecommunications Association-NTTA) and Anis Khemakhem (Chief Commercial Officer at Clearfield Inc.). Additionally, OBD’s executive director Bree Maki presented updates on the Line Extension Connection Program and the federal Broadband Equity, Access, and Deployment (BEAD) program.

More information on this and upcoming meetings can be found on the Broadband Task Force webpage.

OBD resource update, new Maps and Data, Environmental Permitting and Reports webpage

OBD has updated and consolidated resources on our webpage, including a new home for the interactive statewide Minnesota Broadband Map and new Environmental and Permitting Resources section on the Maps and Data, Environmental Permitting, and Reports webpage:

This page will be updated as additional resources are available, serve as a resource hub for archived broadband maps and reports, and works to meet accessibility standards for web content.

Please contact the office at deed.broadband@state.mn.us or 651-259-7610 if you have any questions or need materials provided in an alternate format for accessibility purposes.

Broadband in the news

Upcoming events of interest and recent broadband news to note includes:

  • Register today for the National Tribal Telecommunications Association (NTTA) Midwest Region Tribal Broadband Summit, June 22-24 at Mystic Lake Casino Hotel in Prior Lake, MN. The 2026 NTTA Tribal Broadband Summit is the premier national gathering where Tribal Nations, federal agencies, telecommunications experts, and industry innovators come together with a shared purpose: to accelerate broadband deployment and strengthen digital sovereignty throughout Indian Country.
  • Paul Bunyan Telephone Cooperative’s press release, Update on Broadband Expansion in Central Aitkin County and Gary Johnson receives Lifetime Achievement Award, congratulations to Gary on the recognition of his impact, including his time as CEO.
  • Congratulations to Bevcomm’s Director of Operations, John Sonnek, for 50 years of service and dedication to broadband deployment (pictured below).

OMB Proposes Changes to Federal Grant Administration – including BEAD

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The Benton Institute for Broadband & Society reports…

On May 29, 2026, the Office of Management and Budget (OMB) proposes to revise the Guidance for Federal Financial Assistance. The proposals might be among the most consequential changes to federal grant administration in more than a decade, particularly in the breadth of its policy conditions. OMB is proposing to rewrite the foundational rules that govern how nearly every federal grant dollar—including broadband, digital equity, research, and community development funds—is awarded, conditioned, and potentially terminated. Every entity that receives federal grants or cooperative agreements—states, local governments, Tribes, universities, nonprofits, hospitals, and for-profit organizations—could be impacted. That impact includes recipients of broadband funding from the National Telecommunications and Information Administration (NTIA) (Broadband Equity Access and Deployment (BEAD) Program, Tribal Broadband Connectivity Program, Digital Equity Act programs), the U.S. Department of Agriculture (USDA) (ReConnect), the U.S. Department of the Treasury (Capital Projects Fund), and the Federal Communications Commission (FCC) (Universal Service Fund programs, including Lifeline and E-Rate). The proposed rule would embed the current Administration’s policy priorities—including prohibitions on diversity, equity, and inclusion (DEI) activities—directly into the terms and conditions of federal awards. The proposal would also significantly expand agencies’ power to terminate awards mid-stream, require E-Verify participation by all recipients, and shift OMB’s “guidance” into binding regulation. The public comment period closes July 13, 2026.

The article goes on to detail the proposed changes and highlight the potential impact on BEAD recipients.

The Daily Yonder looks at policy perspective changes of satellite

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The Daily Yonder reports on policy change that impact satellite…

In a proposed rulemaking adopted unanimously on May 20 the FCC asked whether LEO satellite broadband should be treated as a sufficient substitute for terrestrial infrastructure in the most difficult-to-serve areas, and whether continued support for land-based deployments in those locations constitutes unnecessary “overbuilding.”

In its proposal, the FCC claimed “nearly all” remaining U.S. locations without a fiber, cable or fixed wireless broadband connection are now considered to be served by “a LEO satellite provider.”

Many of those locations are in sparsely populated rural areas, where the high cost of deploying terrestrial broadband infrastructure has historically left residents with few connectivity options.

In its filing, the FCC reinforced its policy that “providing support in areas of the country where another voice and broadband provider is offering high-quality service without government assistance is an inefficient use of limited universal service funds.”

IRRR’s 2027 budget includes infrastructure/broadband

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The Iron Range Resources & Rehabilitation reports their budget for 2027; it includes funding for infrastructure, which includes broadband.

Fiscal Year 2027 Budget

The FY27 IRRR budget was approved. The $77 million investment strategy exemplifies IRRR’s unwavering commitment to fostering a more prosperous living and working environment in the Taconite Assistance Area. Strategic priorities and funding include:

  • Improve conditions for economic growth with $31 million of resources in community and workforce development. Funds include a $6 million program to promote the preservation, rehabilitation and investment in regional housing stock and neighborhoods with a focus on construction of new homes and/or apartment buildings.
  • Support public works infrastructure, broadband and business and industry with spending of $19 million. Infrastructure funding assists communities in modernizing, redeveloping and replacing foundational assets in order to attract business investments and expansion.
  • Invest funds in natural and recreational assets, Giants Ridge and regional trails to generate diversification and economic impact while contributing to the quality of life in the region.
  • Produce a fiscally sound spending plan that includes reserve funds for unforeseen future needs.

OPPORTUNITY: Community Connect Grants applications due June 29 2026

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From the USDA…

Community Connect Grants

Applications are being accepted from May 13, 2026, until June 29, 2026, at 11:59 a.m. EST.

What does this program do?

The Community Connect Program provides financial assistance to eligible applicants that will provide broadband service in rural, economically-challenged communities where service does not exist.

Who may apply?

Eligible applicants include:

  • Incorporated organizations
  • Federally-recognized Tribes
  • State and local units of government
  • Any other legal entity, including cooperatives, private corporations, or limited liability companies organized on a for-profit or not-for-profit basis

How do I submit an application?

Applications must be submitted via the Community Connect Application Intake System.

What is an eligible area?

Rural areas that lack any existing broadband speed of at least 10Mbps downstream and 1Mbps upstream are eligible.

  • The Application Guide provides guidance on rural areas currently eligible for Community Connect Grants.

The Rural Utilities Service publishes all Community Connect Proposed Funded Service Areas (PFSAs) through its Public Notice Filing (PNF) process. Incumbent service providers may challenge the eligibility of a PFSA by filing a Public Notice Response (PNR). More information on the PNF/PNR process can be found by visiting the Rural Development Public Notice Filings Portal User Guide. For a demonstration on how to search for PNFs, submit a PNR, subscribe to PNF notifications, and more, watch the PNF Demonstration of the Public Filing Tool video. Those interested in receiving email notifications whenever a new application has been submitted and the PNF has been published can do so by signing up for our Public Notice Filing Subscription Service.

How may the funds be used?

  • The construction, acquisition, or leasing of facilities, spectrum, land or buildings used to deploy broadband service for:
    • All residential and business customers located within the Proposed Funded Service Area (PFSA)
    • All participating critical community facilities (such as public schools, fire stations, and public libraries)
  • The cost of providing broadband service free of charge to the critical community facilities for 2 years.
  • Less than 10% of the grant amount or up to $150,000 may be used for the improvement, expansion, construction or acquisition of a community center that provides online access to the public.

Are there other grant requirements?

  • Buildings constructed with grant funds must be located on property owned by the awardee
  • Leasing expenses will only be covered through the advance of funds period included in the award documents
  • Grantees must have legal authority to provide, construct, operate and maintain the proposed facilities or services
  • Partnerships with other federal, state, local, private and non-profit entities are encouraged
  • Matching funds of at least 15% from non-federal sources are required and can be used for operating costs

What governs this program?

Why does USDA Rural Development do this?

The Community Connect program helps rural communities extend access where broadband service is least likely to be commercially available, but where it can make a tremendous difference in the quality of life for people and businesses. The projects funded by these grants help rural residents tap into the enormous potential of the Internet for jobs, education, healthcare, public safety, and community development.

Rural broadband advocates in MN hopeful new law will prevent missed future funding

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Regular readers will recognize the story that the Minnesota Star Tribune tells of grant funds lost because of light scrutiny on applicants for federal funding. Broadband advocates are hoping that a new law will help protect loss in the future…

So some locals were optimistic when, in 2020, LTD Broadband, a company with Minnesota ties, received more than a billion dollars in federal funding to provide broadband to rural areas like Le Sueur County. Because of the provisional grant, the county found itself shut out of state funding for its own programs because of possible overlap with LTD territories — even though officials in Le Sueur worried the company’s efforts would fail.

LTD’s plans fell apart in 2022 after state and federal regulators revoked key licenses and canceled grants after determining the company couldn’t fulfill its promises.

The result has been missed opportunities for the county, said Barbara Droher Kline, a financial planner and rural broadband consultant for Le Sueur County. She and other broadband advocates said they hope a new federal law will force the U.S. government to do a better job vetting broadband internet providers and their promises.

The Rural Broadband Protection Act, introduced by U.S. Sens. Amy Klobuchar of Minnesota and Shelley Moore Capito of West Virginia, directs the Federal Communications Commission to provide more thorough scrutiny.

“The new FCC vetting process will confirm that providers have the ability — financially, technically and operationally — to follow through with their commitments,” Klobuchar said in a statement to the Minnesota Star Tribune. “This will prevent situations where companies that win federal funding to deploy rural broadband cannot actually deliver service.”

Advocates say the impetus for the law came from the fallout with LTD. The company, which rebranded in 2023 and is now known as GigFire, did not respond to requests for comment.

State and Local Public Sector Innovation Act introduced in congress to establish a federal grant program

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Congresswomen Foushee’s website reports…

Today, Congresswoman Valerie Foushee (NC-04) introduced the State and Local Public Sector Innovation Act, which would establish a federal grant program through the U.S. Department of Commerce to modernize the technology infrastructure utilized by state and local governments to improve security and efficacy of public services.

“Modernizing public institutions and utilizing technology to improve the administration of public services is a necessity in today’s growing digital age. While technology continues to advance at a rapid rate, state and local governments are too often left behind without the proper infrastructure and training to keep up,” said Congresswoman Valerie Foushee (NC-04). “Many jurisdictions hoping to make these improvements simply lack the funding required to properly implement technological advances that will help improve public services. I’m proud to introduce the State and Local Public Sector Innovation Act to ensure our federal government is providing proper support to state and local governments seeking to modernize their technology infrastructure.”

“These proposed investments would protect critical infrastructure and individual privacy, optimize state resources, and ensure local governments can provide a meaningful digital experience,” said N.C. Department of Information Technology Secretary and State Chief Information Officer Nate Denny.

Specifically, the State and Local Public Sector Innovation Act would:

  • Establish a grant program which would provide state and local government’s technology departments to modernize technology utilized by government entities.
  • Grant funds can be utilized to purchase or upgrade existing technology and related infrastructure to upgrade cybersecurity systems, hire staff, update permitting processes to facilitate further modernization, and train staff to support technology modernization.
  • 70% of grant funds provided to a state are required to be dispersed to local governments under the state jurisdictions.
  • The Assistant Secretary of the U.S. Department of Commerce will allocate a portion of funding for regulatory enforcement.

The State and Local Public Sector Innovation Act is endorsed by the National Association of Counties.

The full bill text of the State and Local Public Sector Innovation Act is available here.

NTIA not happy about Wisconsin’s investment in broadband to homes BEAD leaves under or unserved

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It’s not Minnesota but, Broadband Breakfast reports on our neighbors…

NTIA Administrator Arielle Roth isn’t playing “Wisconsin Nice” with that state’s broadband leadership, including retiring Gov. Tony Evers (D). NTIA is pushing back on Wisconsin’s recent claim that tens of thousands of homes will remain unserved as the state launches a new $60 million, state-funded Internet grant round designed to plug holes in its broadband map. In a press release on May 19, Evers said the spending was needed because of NTIA’s decision, engineered by Commerce Secretary Howard Lutnick in June 2025, to abandon the Biden administration’s expensive fiber preference in favor of technological neutrality in the $42.45 billion BEAD program.

FCC to investigating potential fraud in E-Rate program in Minnesota

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The FCC reports...

Today, FCC Chairman Brendan Carr announced that the
Commission has sent three Letters of Inquiry to Minnesota educational institutions to investigate
potential misuse of federal funds disbursed through the E-Rate program. This marks the latest effort
by the Commission to combat fraud, waste, and abuse in Universal Service Fund (USF) programs.
The USF’s E-Rate program helps schools and libraries obtain affordable telecommunications and
information services so students, teachers, and library patrons can take advantage of online
opportunities. The program has provided support to over 132,000 schools and libraries across the
country by funding discounts on Internet access and Wi-Fi services.
Chairman Carr issued the following statement:
“The FCC is committed to stopping bad actors from defrauding our USF programs, including those
who target our E-Rate program as a way to line their own pockets. When billions of dollars are at
stake, we need to ensure that the Commission’s programs are working efficiently and effectively. By
requesting critical program information from Minnesota educational institutions suspected of
wrongdoing within this program, we’re taking that initial and critical step towards being well
informed, good stewards of federal dollars to ensure program funds are being used for their intended
purposes.”
Additional Background Information:
Chairman Carr continues to conduct a top-to-bottom review of all USF programs to ensure taxpayer
dollars are protected. In April 2026, Chairman Carr announced the suspension of seven individuals
involved in a multimillion-dollar fraud scheme targeting the E-Rate program. As part of the FCC’s
efforts to combat fraud, waste, and abuse in Universal Service Fund programs, the FCC recently voted
on updates to its suspension and debarment rules that enable the agency to take quicker and more
comprehensive action against wrongdoers

OPPORTUNITY: USDA applications open for grants to build community-oriented broadband for in rural areas

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From the USDA…

U.S. Department of Agriculture Rural Development invites grant applications to build community-oriented, high-speed internet networks for people in rural areas.

USDA Rural Development is making approximately $17 million available under the Community Connect Grant Program. The program provides financial assistance to eligible applicants that will provide broadband service in rural, economically challenged communities where service does not exist.

Community Connect funds may be used for:

  • The construction, acquisition, or leasing of facilities, spectrum, land or buildings used to deploy broadband service.
  • The cost of providing broadband service free of charge to critical community facilities for two years.
  • The improvement, expansion, construction or acquisition of a community center that provides public access to high-speed internet (up to 10% of the award amount or $150,000 may be used for this purpose).

Award recipients must agree to provide high-speed internet service at community-serving institutions free of charge for up to two years. These institutions include schools, libraries, fire stations and other public safety sites.

Eligible applicants include state and local governments, federally recognized Tribes, nonprofits, for-profit corporations and limited liability companies.

Applications must be submitted electronically no later than June 29, 2026. Additional program information is available on the Community Connect Program website. Interested applicants are encourage to contact their Telecom Program General Field Representative (GFR) and may submit questions using the Community Connect Contact Us Form.

 

Rural Broadband Protection Act requires the FCC to screen applicants for solvency before making awards

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The Benton Institute for Broadband & Society reports…

On May 11, 2026, President Trump signed the Rural Broadband Protection Act of 2025 (S. 98) into law. The new law requires the Federal Communications Commission (FCC or Commission) to screen applicants for high-cost universal service broadband funding before committing funds, and sets minimum financial penalties for applicants who default before receiving funding.

The example of need the author includes happened in Minnesota…

When the FCC ran the Rural Digital Opportunity Fund (RDOF)—a reverse auction that in 2020 initially awarded $9.23 billion to bring broadband to 5,220,833 locations in 49 states—the Commission largely assessed winning bidders’ qualifications after the auction was over, through a post-bid, “long-form” application process (a detailed post-auction filing in which winning bidders were required to demonstrate their qualifications). The result was a wave of defaults and denials that left roughly 1.9 million of those locations without the broadband service the FCC had promised RDOF would make possible.

The most prominent example: the FCC ultimately denied the program’s largest winning bidder, LTD Broadband, a Minnesota-based fixed wireless provider, which initially won $1.3 billion in RDOF awards, after concluding the company “was not reasonably capable of offering the required gigabit-speed, low-latency service throughout the broad areas where it won auction support.”1 That determination came only after the auction had closed and the award had been tentatively made.

The root of the change…

The Rural Broadband Protection Act is Congress’s answer. The law amends Section 254 of the Communications Act of 1934—the statutory foundation of the Universal Service Fund (USF)—by adding a new subsection (“m”) that requires the FCC to screen applicants before making awards, and to set minimum financial penalties for those who default before funding flows.

OPPORTUNITY: USDA Accepts Distance Learning and Telemedicine Grant Applications open to improve access to remote education and health care in rural communities

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USDA Rural Development announces...

U.S. Department of Agriculture Rural Development invites grant applications to improve access to remote education and health care in rural communities.
USDA is making approximately $27 million in funding available under the Distance Learning and Telemedicine (DLT) Grant Program.
This program funds distance learning and telemedicine equipment, including audio and video equipment, to
improve access to educational and health care opportunities in rural communities. These funds will help
digitally connect people to education, training and healthcare resources that are otherwise unavailable or limited in remote parts of the country.
For example, DLT funding expands opportunities for:
• Students to participate in classes that may be in locations too far to access in person;
• Teachers to provide their expertise, trainings and educational services to students across the country; and
• Patients to seek specialized care and treatment from medical professionals without needing to leave their
homes or communities.
Eligible applicants include state and local governmental entities, federally recognized Tribes, nonprofits and for
profit businesses.
Applications must be submitted electronically through grants.gov no later than June 30, 2026. Additional program information is available on the DLT Program website. Interested applicants are encourage to contact their Telecom Program General Field Representative (GFR) and may submit questions using the Contact Us Form.
To subscribe to USDA Rural Development updates, sign up at the GovDelivery subscriber page.

FCC adopts new rules from the E-Rate Program

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From the FCC…

Today, the Federal Communications Commission adopted rules to enhance the integrity of the E-Rate program by amending its rules and establishing a new competitive bidding portal and document repository. Today’s action will assist E-Rate applicants with program compliance and decrease the risk of waste, fraud, and abuse in the E-Rate program. The Commission is also taking actions to simplify and streamline the E-Rate processes and procedures, while giving greater flexibility for both applicants and service providers. The E-Rate program provides support to ensure that schools and libraries can obtain affordable, high-speed broadband services and internal connections. The Commission is committed to the responsible stewardship of E-Rate funds and protecting against waste, fraud, and abuse, and an open competitive bidding process is a cornerstone of, and fundamental, to the integrity of the E-Rate program. This action brings greater transparency and consistency to the competitive bidding process, helping ensure schools and libraries receive the most cost-effective services.

Additional Background Information: Today’s Report and Order and Order on Reconsideration will create and implement a competitive bidding portal and repository for the funding year 2028 competitive bidding cycle, beginning July 1, 2027. Specifically, it will require prospective service providers to submit bids responding to applicants’ requests for bids and require applicants to upload competitive bidding documentation, including bid evaluations, vendor selection documentation, and contracts to the portal. This action will consolidate where information is provided and stored, creating a centralized repository which will reduce the need for applicants to respond to documentation requests from the Commission and the E-Rate program administrator. Today’s action also includes rule changes to simplify and streamline E-Rate processes for applicants and service providers, including refining procedures for applicants transitioning service providers, eliminating unnecessary paperwork, and providing greater flexibility to refile rejected requests for reimbursement. Action by the Commission April 30, 2026 by Report and Order and Order on Reconsideration (FCC 26-30). Chairman Carr and Commissioner Trusty approving. Commissioner Gomez approving in part and dissenting in part. Chairman Carr, Commissioners Gomez and Trusty issuing separate statements.

Funding Applications are open for U of M Empowering Small Minnesota Communities Program

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This isn’t necessarily broadband-specific, but it could help with broadband planning or efforts. From the U of M Center for Transportation Studies…

Small Minnesota communities have a tremendous number of existing assets: beautiful natural areas; essential built environments; economic strengths, and human capabilities to build upon community strengths, meet their challenges, and move toward their aspirations.

The Empowering Small Minnesota Communities (ESMC) program is a community-centered collaboration with the University of Minnesota to support small communities in becoming well-positioned to benefit from federal, state, and local investments.

How? By working together to creatively leverage community assets and ideas and strengthening projects and plans for resilient physical, social, and economic infrastructure.

The goal? Lay the groundwork for competitive proposals that could be eligible for a wide range of funding opportunities.

Interested in participating in the program? Find out more and take action!

Arvig gets $3.4 million from the MN’s Broadband Line Extension to expand to 446 locations

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Business Insider reports…

Arvig will begin construction this spring on an upgrade project to bring last-mile fiber connectivity to 446 structures in eight Minnesota counties.

Arvig was recently awarded grants totaling $3.4 million from the state’s Broadband Line Extension program after submitting successful lowest-cost bids to serve the locations. Arvig will invest another $442,000 to cover the remaining project costs, bringing the grand total of the project to $3.87 million. Upon completion later this year, 104.3 route miles of new fiber infrastructure will have been constructed.

The locations and number of structures to be served are:

  • Becker County: 71 structures
  • Clay County: 14 structures
  • Kandiyohi County: 37 structures
  • Lyon County: 7 structures
  • Mower County: 20 structures
  • Stearns County: 1 structure
  • Todd County: 277 structures
  • Yellow Medicine County: 19 structures