Rural Broadband Modernization Act

This bill modernizes a federal rural internet program so more small towns and farms can get fast, reliable broadband. It offers grants, loans, and government‑backed loans to build or upgrade networks in rural areas. Projects funded must deliver at least 100 Mbps for both download and upload to every rural home they serve, and federal officials can raise these targets over time. An area counts as “served” if it already has at least 100 Mbps download and 20 Mbps upload through wired or licensed wireless service, and the program remains open to any technology that meets these standards.

The program streamlines applications and targets money where it’s needed most. You can submit one application for both grants and loans, and the agency must decide within 30 days. Top priority goes to places with no basic service (below 25 Mbps down/3 Mbps up), plus projects that reach the most homes, experienced local providers, and strong community partnerships. Extra consideration goes to very small or isolated towns, areas losing population with a local plan, low‑income areas, and projects that support precision agriculture . Grants can cover up to 75% of costs (up to 100% in very sparsely populated areas), and states, local governments, and tribes may apply. A portion of program funds is set aside to help applicants with training and technical assistance .

Key points

• Who is affected: Rural households and businesses; internet providers; states, local governments, and tribes; and community anchors like libraries, schools, colleges, and health clinics .
• Where money can go: Grants only in areas where at least 90% of homes lack 100/20 service; loans or guarantees where at least 50% of locations are unserved or below the standard. Awardees must finish build‑out within 5 years. No double‑dipping with other federal or state broadband grants at the same time for the same area.
• How much: Allows up to $500 million per year from 2026–2030. Money is allocated to states based on how many very small communities they have, and unused funds after April 1 can be reassigned to other states.
• Limits and matches: Big providers that already serve at least 20% of U.S. households can’t receive more than 15% of the program’s funds in a year. Matching funds up to 10% may be required .
• Loan terms: Direct loans can be low‑interest and up to 35 years; government‑backed loans use market rates. There’s also optional “payment assistance” that can temporarily require no payments while projects meet milestones .
• When: Changes take effect October 1, 2025. The authority to make new awards ends September 30, 2030.