Funding
Decades-Old Legislation Can Play Supplement to Federal Broadband Infrastructure Money
The Community Reinvestment Act was expanded to include broadband investments in 2016.

CLEVELAND, June 27, 2022 – A decades-old piece of legislation can play an important and supplemental role to federal grants for broadband infrastructure, said panelists at the Pew Charitable Trust Broadband Access Summit Wednesday.
The Community Reinvestment Act was passed in 1977 to address redlining – the practice of denying financial services to individuals or groups based on where they are located, often along racial or soci-economic lines. The law encourages banks to make community development loans and investments in low- and moderate-income communities, rural, and tribal communities.
The legislation expanded to include investments in broadband infrastructure in 2016, after broadband was deemed an essential community service, said Jordana Barton-Garcia, principal of the social enterprise at Barton-Garcia Advisors. That means that it could play a key role in filling some of the broadband gaps, she said, as the federal government moves to distribute billions to the states under the Infrastructure Investment and Jobs Act.
In response to the pandemic, banks can now qualify to receive CRA credit for broadband deployment activities, said Barton-Garcia. Activities include loans, investments, and services that support digital inclusion or affordability programs.
Banks receive CRA credit for investing in community development projects and are reviewed on their CRA performance every three years. Their scores are open to the general public. If the bank receives a negative rating, it may prevent the bank from opening new branches and the bank will be expected to correct the rating.
Currently, the Federal Reserve is seeking comments on a joint agency proposal to strengthen and modernize CRA regulations.
A report published by the Federal Reserve Bank of Dallas in 2016 laid the groundwork for broadband to be included under the CRA. “Under the CRA, infrastructure investment includes facilitating the construction, expansion, improvement, maintenance or operation of essential infrastructure… broadband is now a basic infrastructure needed in all communities.”
The CRA also includes workforce development investments, digital literacy projects, and technical assistance for small businesses.
Expert Opinion
David Strauss: How State Broadband Offices Will Score BEAD Applications
Fiber, coax and fixed wireless network plans dependent on BEAD funding demand scrutiny.

Given the vital ways in which access to broadband enables America, adequate Internet for all is a necessary and overdue undertaking. To help close the digital divide, the Infrastructure Investment and Jobs Act includes $42.5 billion in Broadband Equity, Access and Deployment funding for the last mile. Add to this the estimated level of subgrantee matching funds and the total last mile figure rises to $64 billon, according to the BEAD Funding Allocation and Project Award Framework from ACA Connects and Cartesian.
The federal funds will be disbursed by the Department of Commerce’s National Telecommunications and Information Administration to the State Broadband Offices who will then award subgrants to service providers. On June 30, each state will find out their allocation amount. By 2024, the states will establish a competitive subgrantee process to start selecting applicants and distributing funds.
A critical element of the selection process is the methodology for scoring the technical merits of each subgrantee and their proposal. Specific assessment criteria to be used by each state are not yet set. However, the subgrantee’s network must be built to meet these key performance and technical requirements:
- Speeds of at least 100 Megabits per second (Mbps) download and 20 Mbps upload
- Latency low enough for “reasonably foreseeable, real-time interactive applications”
- No more than 48 hours of outage a year
- Regular conduit access points for fiber projects
- Begin providing service within four years of subgrant date
What level of scrutiny will each state apply in evaluating the technical merits of the applicants and their plans?
Based on our conversations with a number of state broadband leaders, the answers could be as varied as the number of states. For example, some states intend to rigorously judge each applicant’s technical capability, network design and project readiness. In contrast, another state believes that a deep upfront assessment is not needed because the service provider will not receive funds until certain operational milestones are met. Upon completion, an audit of the network’s performance could be implemented.
We, at Broadband Success Partners, are a bit biased about the level of technical scrutiny we think the states should apply. Having assessed over 50 operating and planned networks for private sector clients, we appreciate the importance of a thorough technical assessment. Our network analyses, management interviews and physical inspections have yielded a valuable number of dos and don’ts. By category, below are some of the critical issues we’ve identified.
Network Planning & Design
- Inadequate architecture, lacking needed redundancy
- Insufficient network as-built diagrams and documentation
- Limited available fiber with many segments lacking spares
Network Construction
- Unprotected, single leased circuit connecting cities to network backbone
- Limited daisy-chained bandwidth paths on backhaul network
- Lack of aerial slack storage, increasing repair time and complexity
Network Management & Performance
- Significant optical ground wire plant, increasing potential maintenance cost
- Internet circuit nearing capacity
- Insufficient IPv4 address inventory for planned growth
Equipment
- Obsolete passive optical network equipment
- Risky use of indoor optical network terminals in outdoor enclosures
- Sloppy, untraceable wiring
Technical Service / Network Operations Center
- Technical staff too lean
- High labor rate for fiber placement
- Insufficient NOC functionality
While the problems we uncover do not always raise to the level of a red flag, it happens often enough to justify this exercise. Our clients who invest their own capital in these networks certainly think so. The same should hold true for networks funded with taxpayer money. Fiber, coax and fixed wireless network plans dependent on BEAD funding demand serious scrutiny.
David Strauss is a Principal and Co-founder of Broadband Success Partners, the leading broadband consulting firm focused exclusively on network evaluation and technical due diligence. This piece is exclusive to Broadband Breakfast.
Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views reflected in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.
Funding
Treasury Feels Obligated to Inform Federal Agencies about Capital Projects Fund Projects Locations
Department of Treasury is working to provide guidance for providers on how to grow their business.

WASHINGTON, March 16, 2023 – The Treasury Department is focusing on keeping afloat other federal agencies about completed broadband builds using its Capital Projects Fund to ensure federal money is not wasted, according to the program’s director on Wednesday.
Joseph Wender said on a Fiber for Breakfast web event that the department requires recipients of money from the fund to provide the coordinates of “every location that’s been served.
“Because we do feel an obligation to our federal partners, particularly the [Federal Communications Commission] and the [National Telecommunications and Information Administration] to ensure that our federally funded locations are fit into the larger map,” Wender added.
“We need to have a global awareness of where all of our funds are,” he added. “That is a reporting requirement that we take very seriously.”
The FCC released its first version of the broadband map in November and subsequently opened up a second round of data collection on January 3.
Since then there have been challenges sent to the agency on the accuracy of the map, including where areas are reported to have builds but don’t.
The map will be used by the NTIA’s Broadband Equity, Access and Deployment program to deliver $42.5 billion to the states by June 30.
Industry associations and experts have requested that the FCC map add more information, including up-to-date information on where other federal and state funds are being allocated.
In January, experts agreed at an event that the federal funds should be better tracked in order to maximize its benefits.
“Money goes out from the government in broadband stimulus, but we don’t track where it’s going very well,” said Sarah Oh Lam, senior fellow at the Technology Policy Institute, a federal funded research and development center. “We really don’t know outcomes…and I don’t see many efforts in mandating that we collect data from this [stimulus] round from the grantees that receive money.
Funding
‘Buy America’ Waivers Possible, But Very Difficult to Obtain, Says NTIA Chief
The bar ‘is not impossibly high, but it is high,’ Alan Davidson said.

WASHINGTON, March 16, 2023 – The bipartisan infrastructure law is a broadband connectivity program as well as “an opportunity for us to be promoting U.S. jobs and promoting manufacturing capability,” said the head of the federal agency charged with implementation.
Although “there will be instances” where “Buy America” rules will be waived, “we will be looking very carefully for where” such waivers are allowed, said Alan Davidson, head of the Commerce Department’s National Telecommunications and Information Administration.
Speaking at a Verizon-hosted event here on Wednesday, Davidson cited President Biden’s inclusion of reference to the Buy America regulations in the State of the Union Address on February 7, a marquee forum signaling the importance of the rules to the administration.
“The bar has been set high: Not impossibly high, but it is high,” Davidson said.
In a statement by NTIA on February 9, two days after the State of the Union, the agency said that broadband projects funded from its $42.5 billion Broadband Equity, Access and Deployment program will “have time” to get “made in America” products
There is widespread concern, raised during in a Broadband Breakfast event on February 8 and in other forums, that the electronic components in fiber-optic equipment are simply not available from American-made manufacturers. The fiber cables themselves, by contrast, are increasingly being manufactured in America.
President Biden, Davidson continued, “fully expects that we will source all of our materials and all of our work in the U.S. Fiber-optic cables are a good example of this.” He cited fiber manufacturer Corning as an example of announcing a new manufacturing facility in Arizona.
“We are hoping and expecting other announcements like that in the near future,” he said.
‘A startup in government’
In a conversation with Kathleen Grillo, Verizon’s senior vice president of public policy, Davidson said that $1.7 billion had already been awarded to state broadband offices, who are working to prepare broadband plans as part of the Infrastructure Investment and Jobs Act’s $42.5 billion BEAD program.
He highlighted the significance of the June 30, 2023, deadline by which the agency will announce funding awards to states.
“Some states are very sophisticated; others are just standing up their broadband offices now,” he said.
Asked to define the missions and values that NTIA is bringing to its broadband implementation, Davidson cited excellence, integrity and kindness.
The program, he said, “is like a startup in government.”
-
Fiber3 weeks ago
‘Not a Great Product’: AT&T Not Looking to Invest Heavily in Fixed Wireless
-
Broadband Roundup2 weeks ago
AT&T Floats BEAD in USF Areas, Counties Concerned About FCC Map, Alabama’s $25M for Broadband
-
Big Tech3 weeks ago
House Innovation, Data, and Commerce Chairman Gus Bilirakis to Keynote Big Tech & Speech Summit
-
Big Tech2 weeks ago
Watch the Webinar of Big Tech & Speech Summit for $9 and Receive Our Breakfast Club Report
-
Big Tech2 weeks ago
Preview the Start of Broadband Breakfast’s Big Tech & Speech Summit
-
#broadbandlive2 weeks ago
Broadband Breakfast on March 8: A Status Update on Tribal Broadband
-
WISP4 weeks ago
Starry Group Files for Chapter 11 Bankruptcy
-
Broadband's Impact4 weeks ago
Community Engagement is Key to BEAD Grant Planning Process, Experts Say