Sponsors (20)
Official title: To amend the Rural Electrification Act of 1936 to establish the ReConnect program under that Act, and for other purposes.
Introduced April 30, 2025 by Zach Nunn · Last progress April 30, 2025
The bill directs sustained, targeted federal funding and technical support to expand reliable, minimum‑speed broadband in rural and disadvantaged areas, trading higher federal spending and added project cost/administrative constraints that may limit provider participation or complicate implementation.
Rural households (especially low-income ones) will gain access to higher-speed broadband with a minimum of 100/100 Mbps, improving home internet quality and reliability.
Communities with very low existing broadband and disadvantaged areas (tribal lands, persistent poverty counties, colonias, socially vulnerable communities) are prioritized and made eligible for grant-only awards, directing limited resources to the neediest places.
Smaller applicants and local entities (including small businesses and rural applicants) receive technical assistance funding (3–5% of appropriations) to help prepare applications and manage projects, increasing chances that local groups can participate.
Taxpayers and the federal budget face increased spending of at least $650M per year plus $350M per year in direct loans through 2030, adding to federal outlays.
Contractors and project budgets will face higher labor costs because prioritized projects must pay Davis‑Bacon prevailing wages, which could raise per-project costs and reduce coverage per dollar.
Large national providers (those serving ≥20% of U.S. households) are limited by a 15% per-year cap on receiving funds, which may constrain participation by big carriers and could limit project scale or change which firms build networks.
Based on analysis of 2 sections of legislative text.
Revises the Rural Electrification Act broadband program, authorizes $650M/year (FY2026–2030) plus $350M/year transitional loans, updates rules and sunsets grant/loan authority after Sept 30, 2030.
Rewrites and expands the USDA rural broadband program in the Rural Electrification Act to speed deployment in underserved rural areas. It updates eligibility, project standards, priorities, and cost-share rules; authorizes $650 million per year for FY2026–FY2030 (available until expended); limits USDA administrative use to 5% of certain funds; creates an additional $350 million per year transitional direct loan program for FY2026–FY2030; rescinds and reappropriates certain unobligated balances; and ends authority to make grants or loans under this section after September 30, 2030. The bill modernizes program rules, sets funding levels and priorities for rural broadband buildout, preserves a transitional loan option reflecting prior law, and phases out older statutory language within 120 days for a specific prior appropriation provision.