Funding
CHIPS Act is Working, Lawmakers Say at First Anniversary
Companies have announced over $166 billion in semiconductor investments since the CHIPS Act was passed.

WASHINGTON, August 11, 2023 – The White House on Thursday celebrated the CHIPS and Science Act as a successful investment in American semiconductor manufacturing, research and development and workforce on the law’s one-year anniversary.
“One year ago today, I signed into law the bipartisan CHIPS and Science Act to revitalize American leadership in semiconductors,” said President Joe Biden on the one year anniversary. “The CHIPS and Science Act is a key part of my Bidenomics agenda to bring investment and opportunity to every corner of the country. Over the coming months, my Administration will continue to implement this historic law, make sure American union workers, small businesses, and families benefit from investments spurred by the CHIPS and Science Act.”
The CHIPS and Science Act invests nearly $52 billion in U.S. semiconductor manufacturing, the microprocessors that power every electronic device. The law also creates a 25 percent tax credit for capital investments in semiconductor manufacturing and is helping to keep America at the forefront of innovation and technological development, wrote the White House in a press release.
Since the passage of the law, companies have announced over $166 billion in manufacturing in semiconductors and electronics, and at least 50 community colleges in 19 states have announced new or expanded programs to help American workers find jobs in the semiconductor industry.
“These investments are creating jobs and opportunities in communities across the country – from Ohio to Arizona, Texas and New York,” said Biden. He added that the act will “make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains.”
Laying the foundation for dynamic economy and national security
“The CHIPS Act has only been law for one year, but it has already laid the foundation for a more dynamic economy and durable national security,” added Representative Doris Matsui, D-Calif., in a statement. “Innovation has always been the backbone of America’s economic edge – but we needed bold investments to reclaim our global leadership. Bottom line: the CHIPS Act is working.”
“American innovators are lined up to create good-paying jobs and build the skilled and diverse workforce we need to grow. CHIPS Act implementation is on strong footing, and we must continue to act with urgency to show the rest of the world that America is still the gold standard for innovation,” Matsui continued.
The Department of Commerce announced the first round of grants and the National Science Foundation and Departments of Energy, Commerce and Defense announced this week progress toward establishing the National Semiconductor Technology Center, which will advance America’s semiconductor research and development, reported the White House.
The first round of funding covers projects that construct, expand or modernize facilities producing semiconductors and projects that invest in facilities to produce semiconductor materials and manufacturing equipment.
Already, the Commerce Department received more than 460 statements of interest for companies seeking to receive money from the CHIPS Act across 42 states. The Department of Commerce has taken several steps to ensure that the Act is accessible for companies looking to receive grant money, wrote the White House.
Ryan Harper, a White House representative for the CHIPS Act, said on a call Thursday that the Commerce Department will announce funding opportunities for smaller projects to support fab clusters in the coming weeks.
Commerce encourages local and state governments to apply as a partnership with grantees for these projects, said Harper. He added that there are many more funding opportunities to come through the CHIPS Act.
Funding
House Democrat Introduces Bill to Add Local Parks to E-Rate Program
The Technology in the Parks Act would also put parks in line for used computers and equipment from federal agencies.

WASHINGTON, December 1, 2023 – A House Democrat announced on Friday a bill that would fund broadband internet and devices for public parks.
The Technology in the Parks Act would expand the Federal Communications Commission’s E-Rate program to include local parks. That program currently provides approximately $4 billion in yearly broadband subsidies for schools and libraries through the FCC’s Universal Service Fund. Adding public parks would allow them to request government money toward the cost of internet each month.
The move is “crucial to bringing broadband access to these community spaces,” said the bill’s sponsor, Rep. Danny Davis, D-Illinois, in a statement.
In an effort to provide devices on the subsidized connection, the bill would also put parks in the U.S. General Services Administration’s Computers for Learning program. That would give parks access to computer equipment no longer being used by federal agencies.
The bill would also tap the Department of Labor to implement a grant program for “technology training programs” in local parks.
Similar programs aimed at helping people navigate and participate in online spaces are drawing funds from other federal agencies. The Commerce Department’s $42.5 billion broadband expansion program makes room for states to fund digital literacy trainings, and its $2.75 billion Digital Equity Act programs are targeted at such efforts.
Reps. Raúl Grijalva, D-Arizona, and Bruce Westerman, R-Arkansas, introduced a similar bill on November 29 that would expand broadband in national parks managed by the federal government.
Funding
North Carolina Releases Final Guidance on $100 Million Pole Replacement Program
Providers may receive up to $10,000 for each utility pole they replace in unserved areas.

WASHINGTON, November 27, 2023 – North Carolina’s broadband office released on Monday final guidance for its $100 million pole replacement program.
The program, funded by the American Rescue Plan Act, will reimburse broadband providers for utility pole replacement costs. Expanding networks can involve attaching equipment to those utility poles. When a pole needs to be replaced to accommodate more equipment, pole owners typically pass the cost on to attachers.
Telecommunications companies have cited this extra cost as a barrier to quick broadband deployments, something utility companies dispute. The two industries have been in conflict on the issue for years, with both continuing to push the FCC to weigh in on a cost sharing regime.
North Carolina’s plan is an effort to smooth over the issue for future broadband expansion efforts, Nate Denny, the state department of information technology’s deputy secretary for broadband and digital equity, said in a statement.
“It addresses a significant barrier to closing the digital divide in remote parts of our state,” he said.
Under the program, broadband providers can apply for 50 percent of the replacement cost for each pole replaced, up to $10,000 per pole. Pole replacement costs in unserved areas after June 1, 2021 are eligible for reimbursement.
The program will kick off in February 2024 and accept applications from qualified providers.
The FCC has authority in 26 states over the terms of agreements between investor-owned utilities and telecom companies, which does not include publicly owned utilities or broadband providers that solely provide internet. The agency is set to vote on updated pole attachment rules at its December meeting.
Expert Opinion
Kate Forscey: National Security and Global Success Depend Upon Prioritizing Telecom Funding
The Affordable Connectivity Program and the Rip-and-Replace program are both central funding needs for the industry.

With the government now funded into the new year, it’s time for Congress to take another look at its broader priorities, especially when it comes to the race with China for dominance in next-generation technologies. Whether it’s AI or cloud computing or virtual reality, if the United States is to remain competitive, we need to make secure and effective communications a priority. This means finally connecting all Americans to high-speed broadband and ensuring that our connectivity cannot be undermined by foreign adversaries.
Two popular programs are central to this goal: the Affordable Connectivity Program and the Rip-and-Replace program. Both of these programs have tremendous bipartisan, bicameral support; but both have been underfunded and now risk dying on the vine. Congress has the opportunity to fully fund these programs if it has the will to do so.
Let’s break it down.
The Affordable Connectivity Program provides low-income American families and veterans with discounts on Internet service and connectivity equipment, including higher discounts for those living on Tribal lands. With affordable broadband, more Americans can get online and be a part of the digital economy.
The ACP has been wildly successful, connecting over 21 million households to essential broadband they could otherwise not afford. And it continues to garner widespread support, with the vast majority of voters (78%) calling for its extension, including 64% of Republicans, 70% of Independents, and 95% of Democrats.
Congress provided the ACP with $14.2 billion in 2021—but funding is now running low and is projected to be fully exhausted by spring 2024. Governors, lawmakers on both sides of the aisle, public interest groups, and Internet service providers are all raising the alarm about its imminent depletion. That’s why the Biden Administration in October called on Congress to replenish the program’s coffers with an additional $6 billion.
A good start, but not the whole story. Our foreign adversaries are well known for their espionage, and while a spy balloon might get the attention, a far more insidious problem lurks in our communications networks: equipment designed and produced by Chinese suppliers Huawei and ZTE. A bipartisan Congress passed the Secure and Trusted Networks Act to eradicate national security threats such as these, but sufficient funding for the Rip and Replace program has never materialized.
Again, the Biden Administration has stepped up and identified a need for $3.1 billion to fully fund the program as a “key national security priority” in its emergency supplemental funding request. It’s a narrative we can all get on-board with: that broadband falls under the umbrella of national security as a whole. American consumers and institutions both benefit from American-built networks and increased protection at home. But communications providers can’t live up to these needs on their own.
As it stands, the responsibility to get affordable, secure connectivity programs across the finish line rests with Congress. Even with a consensus of support for these two programs, the devil is in the details of how to make the price tags palatable to enough policymakers on Capitol Hill. The key is ensuring that any changes preserve the widespread efficacy of the program that has made it popular so far.
For example, Congress could cut the cost of the ACP by limiting the additional Tribal funding to rural Tribal lands. Any such change should be grounded in an evaluation of existing need in urban areas, but could be an opportunity to ensure funds are being directed to areas of greatest need. And Congress should consider indexing the ACP to inflation. The high inflation of recent years has wreaked havoc on the budgets of consumers—and inflation-proofing the program would ensure that broadband remains affordable for all Americans even should inflation come back.
As for Rip-and-Replace, those of us urging for more funds could concede putting safeguards in place to ensure the money is being used for its intended purpose – the kind of compromise needed to get such policies across the finish line
These are just some ideas as we head into the final funding fight. Not everyone is going to be on the same page on what is and isn’t working best, but shared success starts by recognizing that we all have the same endgame. Congress must ensure that adequate funding for the ACP and Rip and Replace program are included in any year-end spending package. We have an all-too-rare opportunity to win the race for high-tech dominance—we just need to provide the resources.
Kate Forscey is a contributing fellow for the Digital Progress Institute and principal and founder of KRF Strategies LLC. She has served as senior technology policy advisor for Congresswoman Anna G. Eshoo and policy counsel at Public Knowledge. 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 expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.
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