The Federal Communications Commission must establish a vetting process for entities applying for rural broadband deployment funding under a bill signed into law by President Donald Trump on Monday.
The Rural Broadband Protection Act — first introduced by Sens. Shelly Moore Capito, R-W.Va., Amy Klobuchar, D-Minn., and John Curtis, R-Utah — requires the FCC to develop vetting processes for companies that submit applications under the Universal Service Fund’s high-cost program, which helps offset the cost of broadband buildouts in rural areas that telecom carriers otherwise have little market incentive to expand to.
Under the bill, FCC must "document each applicant’s technical, financial, and operational capabilities related to the proposed deployment, as well as a reasonable business plan,” according to a summary. The agency must also consider each applicants' history of compliance with other government broadband funding programs.
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It also would force the agency to set penalties for applicants that default while being evaluated.
When first introducing the bill early last year, Capito said her discussions with state officials and rural service providers "made it abundantly clear the FCC needs congressional direction to ensure taxpayer money is being used properly to fund broadband deployment in rural areas."
The bill has also seen support from NTCA, a trade group representing rural broadband providers. The organization's CEO Mike Romano cheered House approval of the passage in a statement last month, saying, "better vetting of providers’ capabilities before they are awarded such funds is good public policy and common sense."
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