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Va. gets initial approval for $1.48B to increase broadband

The U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) has approved Virginia’s initial proposal for the Broadband Equity, Access, and Deployment (BEAD) program, according to a NTIA dashboard that tracks proposals. 

This approval means Virginia can now request access to $1.48 billion in federal funding to reach locations in the state that don’t have high-speed internet. 

Virginia received the sixth-largest BEAD grant, and Texas had the largest with $3.31 billion.

“Virginia’s historic investment in broadband infrastructure is one key ingredient which helped drive our ranking as America’s top state to do business in 2024. With the resources we are securing today, we can close the digital divide and ensure all Virginians have access to high-speed internet,” Gov. Glenn Youngkin said in a Friday announcement. 

In September 2023, the Virginia Department of Housing and Community Development announced Virginia was the first state in the nation to submit required BEAD documents outlining Virginia’s plans for the program. 

The BEAD program is a $42.45 billion state grant program authorized by the Infrastructure Investment and Jobs Act which was co-authored by Sen. Mark Warner and signed into law by President Biden in 2021. The goal of BEAD is to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs.

“Today’s announcement brings us one step closer to accessing our historic $1.5 billion award and expanding high-speed internet access to more families and businesses across Virginia,” Warner said in a statement Friday. “Virginia has a strong plan to get us closer to universal coverage, and this funding will help make that plan a reality. I’m proud to have authored and negotiated the law that made this possible, and I’m ready to work to make sure it’s implemented as quickly and efficiently as possible so more Virginians have access to high-speed internet.”

Any funds left over after deployment goals are met can be used on high-speed Internet adoption, training and workforce development efforts, according to NTIA. 

DHCD will administer the commonwealth’s BEAD allocation to build upon the work of the Virginia Telecommunication Initiative (VATI), which also funds broadband extension to unserved areas. On Wednesday, Gov. Youngkin announced VATI had provided more than $41 million in grants to 10 broadband construction projects that will serve Virginians in 20 localities.

Next, Virginia officials will ensure all locations lacking access to high-speed internet are not already part of an existing state or federal program designed to expand broadband access, according to the governor’s office. “We’re going to be looking at over 100,000 or maybe right at that,” DHCD Director and Chief Broadband Advisor Bryan Horn said. 

Later this year, Virginia officials will launch the project’s application phase, where broadband providers can submit applications to express interest in extending services to unconnected regions.  

“The governor will recommend projects to the NTIA for funding, and then the NTIA will make the final decision,” Horn said.

Horn declined to estimate when every Virginian will be able to connect to affordable high-speed internet. “These are construction projects,” he said of expanding broadband access. “And there are, there’s nothing really typical on construction projects.”

Since 2017, Virginia has allocated over $935 million in state and federal funding to extend broadband infrastructure to over 388,000 locations in 80 cities and counties across the Commonwealth. These investments have leveraged an additional $1.1 billion in matching funds from local governments and internet service providers.  “We’re just going to keep moving forward as fast we can,” Horn said. 

 

Va. broadband goal includes access for all by 2027-2028

A new five-year plan calls for connecting more than 162,000 Virginia businesses and homes that currently lack broadband access to high-speed internet by 2028.

On Friday, Gov. Glenn Youngkin released the plan, as well as volume 2 of the state’s initial proposal outlining its strategies under the federal Broadband Equity, Access and Deployment (BEAD) program. BEAD is a $42.4 billion national program to expand high-speed internet access by funding planning, infrastructure deployment and adoption plans under the federal Infrastructure Investments and Jobs Act.

Virginia’s allocation, which will be administered by the state Department of Housing and Community Development, includes $1.48 billion, of which $958.7 million will be spent to connect homes and businesses.

According to the plans, the state will use its BEAD money to work with local governments and internet service providers to “plan shovel-ready, universal broadband projects ready for funding,” as well as to remove barriers for special constructions costs for access to locations through line-extension programs by the end of 2024. The plan also includes goals of completing construction of BEAD-funded projects by 2027 to 2028, promoting the use of federal affordability programs by 5% to lower the cost of broadband services and conducting a needs assessment to develop programs to reach full adoption.

As of July, 384,475 households in Virginia were receiving $11.5 million in federal subsidies monthly toward the cost of broadband, but as many as 715,525 more households that could be eligible were not enrolled, and they’re missing out on more than $21 million per month.

“In today’s increasingly digital world, having access to high-speed broadband is no longer a luxury; it is necessary in order to fully participate in daily life,” Youngkin said in a statement. “I’m proud to share that the commonwealth is the first in the nation to release these plans and to strategize the effective utilization of these funds, ensuring that all Virginians are connected through broadband.”

The plans also say that extending broadband access will cost 50% more than anticipated as a result of inflation and because of federal requirements. The cost per location for the over 137,000 locations that could be served by multilocation deployments increased from $2,587 on average to $5,316; the cost for line extensions, which applies to about 15,000 locations, increased from about $6,142 to $9,113.

Since 2017, Virginia has allocated more than $935 million in state and federal funding to extend broadband infrastructure to more than 388,000 locations in 80 cities and counties, and those investments have brought in about $1.1 billion in matching funds from local governments and internet service providers.

DHCD is accepting public comment through Sept. 19 for volume 2 of its initial proposal.  For more information and to submit comments, visit: dhcd.virginia.gov/vati

In 2021, former Gov. Ralph Northam pledged to provide broadband access across Virginia by 2024, accelerating by fours years his original pledge to achieve universal broadband access by 2028 because of an infusion of federal COVID-19 relief funding that Virginia received in 2020 and 2021.