Biden Administration Spending $42 Billion on Internet Access

Knowledge Nuggets:

• The Biden administration has announced a $42.45 billion grant program, touted as the largest investment in high-speed internet ever, aimed at making internet access universal by 2030.
• Funds will be allocated to all 50 states, the District of Columbia and U.S. territories, with allocations ranging from $27 million to over $3.3 billion, promising every state a minimum of $107 million.
• While the program emphasizes creating American jobs and using materials made in the U.S., questions arise over the efficiency and efficacy of such massive government-led initiatives, contrasting with the potential benefits of free-market solutions and private sector involvement.

In a move deemed the largest in history for internet funding, the U.S. government announced on Monday that it will be dedicating more than $42 billion to enhance high-speed internet access across the nation.

The investment, stemming from the Bipartisan Infrastructure Law, is set to transform internet access into a service as fundamental as electricity and water by 2030.

“Internet access is just as important as electricity, or water, or other basic services,” President Biden stated in a White House address.

Under the Broadband Equity Access and Deployment program, every state will receive a minimum of $107 million for high-speed internet infrastructure deployment, with the top ten allocations going to states including Alabama, California, Texas, and others.

Almost 20 states are set to receive allocations exceeding $1 billion.

The funding will also support manufacturing jobs and stimulate investment in the U.S. materials.

Notably, fiber optic cable manufacturers CommScope and Corning announced expansions of their domestic manufacturing capacity to the tune of $47 million and $500 million, respectively.

The expansions are set to create hundreds of well-paid jobs in North Carolina.

The investment is set to not only increase the nation’s competitiveness but also stimulate economic growth.

“The investments we’re announcing will increase our competitiveness and spur economic growth across the country for years to come,” Secretary of Commerce Gina Raimondo said in a statement.

This funding announcement builds on President Biden’s earlier American Rescue plan, which also earmarked more than $25 billion for high-speed internet.

Eligible entities will receive their formal notice of allocation on June 30, 2023, and will have 180 days to submit their initial proposals outlining how they intend to administer their grant programs.

This significant move aims to make quality, affordable high-speed internet service universal, connecting more people to the digital economy and creating good-paying jobs in internet infrastructure.

Clear Thoughts

While it’s undeniable that high-speed internet access is vital in our increasingly digital society, the Biden administration’s allocation of over $42 billion for nationwide internet infrastructure is yet another example of government overreach.

The scale of this investment, the largest in history for internet funding, seems to gloss over the potential for market solutions to provide affordable, reliable services.

For instance, it would be beneficial to incentivize private sector innovation and competition, which often leads to better services and lower costs for consumers.

Instead, the federal government is stepping in with massive spending, which will eventually be borne by taxpayers.

Furthermore, the details of how these funds will be efficiently managed and accurately accounted for are still murky, given the government’s track record of wasteful spending.

As conservatives, we believe that such large-scale problems are best tackled by the private sector, guided by free-market principles and backed by focused government support, not expansive government spending programs.

Source