Programmatic Waiver of Letter of Credit Requirement for BEAD Funding

The National Telecommunications and Information Administration (“NTIA”) adopted a Programmatic Waiver of its letter of credit (“LOC”) requirement for subgrantees of funding under the Broadband Equity, Access and Deployment (“BEAD”) program.  Originally, all subgrantees of BEAD funding were required to secure an irrevocable standby letter of credit accounting for no less than 25 percent of the subaward amount for the duration of the project.  Under the waiver, NTIA is allowing the use of performance bonds, LOCs issued by credit unions, a reduction in obligation upon completion of certain milestones, or an alternative initial LOC or performance bond percentage.  

$274 Million in Rural Broadband Funding

Last week, the U.S. Department of Agriculture (“USDA”) announced approximately $274 million across 15 grant and loan funding awards to expand broadband access, including $260 million awarded through the fourth round of funding for the ReConnect Program (the “Program”).  The Program administers loans and grants to broadband service providers to construct, improve, or acquire facilities needed to provide broadband service to rural areas without connectivity.  The awards will support residents and businesses in Alaska, Arizona, Illinois, Michigan, Missouri, New Mexico, Oklahoma, and Texas.  

FCC Approved 3.45 GHz Clearinghouse Operator

The FCC has approved Summit Ridge Group, LLC (“Summit Ridge”) to serve as the 3.45 GHz Band Reimbursement Clearinghouse. Following the auction of 100 megahertz of spectrum in the 3.45 GHZ band (Vol. XIX, Issue 19), the Commission delegated authority to the Wireless Telecommunications Bureau to develop and implement a clearinghouse selection process similar to the one used in its 3.7 GHz proceeding.  The Clearinghouse is responsible for managing the collection and distribution of relocation reimbursement payments from new licensees (Vol. XX, Issue 11).  

Over $5 Million in ECF Funding

The FCC announced that it is committing over $5 million in a new funding round through the Emergency Connectivity Fund (“ECF” or the “Program”).  This funding supports applications from the third application window and will benefit about 14,000 students in 23 schools and school districts, including those in California, New Jersey, and Wisconsin.  To date, the Program has provided support to approximately 11,500 schools, 1070 libraries, and 128 consortia. 

Casey Lide, Thomas B. Magee, Tracy P. Marshall, Kathleen Slattery Thompson, Sean A. Stokes, and Wesley K. Wright contributed to this article.