RELEASE: House approves new $25 million investment in broadband

SAINT PAUL, Minn. – Monday, on a vote of 70-62, the Minnesota House approved legislation to invest $25 million toward expanding high-speed broadband access to every corner of the state.

“High-speed broadband isn’t just a luxury anymore. It’s absolutely critical for students to do schoolwork, for businesses to sell products and participate in global commerce, and for families to communicate with one another,” said Rep. Rob Ecklund (DFL – International Falls), author of the bill’s broadband investments. “In addition to new investments, DFLers are making improvements to our grant program to expand access to more unserved communities, bringing us closer to our speed and access goals so everyone can have the internet access they deserve.”

The bill delivers $25 million for the Minnesota Border-to-Border Broadband Grant Program, under which $104 million has been invested since 2014. The matching grants leverage private investments to expand broadband infrastructure into unserved and underserved areas.

Current law caps broadband grants at $5 million, which Rep. Ecklund’s bill raises to $10 million. The bill also increases the eligible match proportion from 50% to 75%. Many townships with low populations have shared difficulties qualifying for grants because they’re unable to come up with adequate funding under the current required match formula.

“All Minnesotans deserve access to reliable high-speed broadband internet so they can run their businesses, do their homework, and see their doctor,” said Speaker Melissa Hortman. “House DFLers have long been strong supporters of broadband, going back to the creation of the Border-to-Border Broadband Grant Program in 2014. Even with significant federal dollars coming to Minnesota, House DFLers are continuing to bring forward new state investments — with substantially more general fund dollars than the Senate Republicans — to help expand broadband infrastructure.” 

The state of Minnesota is still awaiting approval from the U.S. Department of the Treasury to offer $70 million worth of grants under the federal American Rescue Plan. Additional funding will likely soon be available for broadband grants from other federal sources, including at least $100 million from President Biden’s Infrastructure Plan.

“Whether you’re a student who needs to do research online for a school project, an entrepreneur who wants to bring a new product to market, or a senior citizen who is receiving a diagnosis from their physician, access to high-speed broadband internet for school, small businesses, and tele-health is a necessity,” said House Majority Leader Ryan Winkler. “House Democrats are putting more money into the development of our state’s broadband infrastructure because it’s what Minnesotans tell us they need to live their lives and contribute to their communities.”

As of January 2021, 83% of households in rural Minnesota had access to broadband meeting the state’s 2022 speed goal of 25mbps download/3mbs upload, up from 68% in 2015. Only 72.5% of rural households currently have access to the state’s 2026 speed goal of 100mbs download/20mbs upload. According to the Office of Broadband Development, an estimated investment of $1.3 billion is necessary to connect the remaining homes to service with these speeds.