Politics

Broadband Hearing Proves Stimulus Money Abused

Today, the Subcommittee on Rural Development, Biotechnology, Specialty Crops, and Foreign Agriculture, held a hearing to review broadband funding enacted by the American Recovery and Reinvestment Act. The Subcommittee heard testimony from officials representing the U.S. Department of Agriculture and Department of Commerce.

The American Recovery and Reinvestment Act of 2009 provided the USDA?s Rural Utilities Service and the Department of Commerce?s National Telecommunications and Information Administration with $7.2 billion to expand access to broadband services in the United States. The 2008 Farm Bill reauthorized the USDA broadband loan program and improved the criteria used by USDA to select broadband projects for loans, loan and grant combinations, and grants. Congressman Mike Conaway (R-TX-11), the Ranking Subcommittee Member on the Committee, made this statement following today?s hearing:

?The stimulus funding provided a great opportunity to bring broadband to the unserved rural communities in America. Broadband has the potential to generate American jobs in rural America – not overseas. To achieve that goal, access must be affordable and accessible to people living in rural America. It was my hope that this hearing would work to resolve some of the problems in the program, including defining remote versus rural areas and increasing participation in the program for the next Notice of Available Funds (NOAF).

?It is unfortunate that an arbitrary deadline set by Congress in February is resulting in a flawed process. This subcommittee is providing oversight of the USDA to ensure that Rural Americans receive the best possible broadband available. It is my hope that some of the suggestions made by the committee members today will be incorporated in the next round of funding.

?I am perplexed by the agencies? position to include non-discrimination provisions that go beyond what the FCC proposed in the October 22nd rule. Experts on both sides of this debate believe that the FCC is the best governing body to find the right balance between protecting broadband consumers while allowing broadband providers to manage their networks against security threats and congestion. By applying these rules existing broadband providers or providers that are not connected to a larger network are not applying for the grant and loan funding, in part because these requirements will place costly restrictions on their network and will impose net-neutrality policies that go above and beyond what is being proposed by the FCC.

?The next NOFA should use the FCC?s statutory authority to regulate and govern broadband provider?s network management to avoid litigation and allow proper negotiations on this controversial issue.?

Rep. Mike Conaway is a Member of the House Agriculture Committee, and is Ranking Member of the Rural Development Subcommittee.

Full post as published by Mike Conaway's Blog on November 20, 2009 (boomark / email).