President Biden is proposing the federal government spend $100 billion over eight years to fix the poor state of broadband in the US.
The proposal is part of a $2 trillion “American Jobs Plan” that Biden is introducing today to improve the country’s infrastructure and create jobs.
The plan allocates $100 billion to build a “future proof” broadband infrastructure in underserved areas across the US. So users based in rural regions, which tend to be stuck with slow speeds and few providers, stand to benefit the most. But the overall goal is to ensure high-speed internet can reach every American household for 100% broadband coverage.
However, the White House plan isn’t necessarily going to give the money corporate internet service providers, which have gained a notorious reputation for imposing data caps and charging high fees. Instead, the plan “prioritizes support for broadband networks owned, operated by, or affiliated with local governments, non-profits, and co-operatives—providers with less pressure to turn profits and with a commitment to serving entire communities,” the Biden administration said.
On the broadband front, the plan lacks specifics. But another goal is to lift barriers that have prevented city governments and rural co-ops from running their own broadband services to compete with corporate ISPs. Many of these municipal ISPs are offering fast internet plans at affordable rates. However, lawmakers in some states have stymied or banned government municipalities from entering the broadband business.
The final priority is to ensure people can afford the internet once the broadband infrastructure is built out. In the short-term, President Biden proposes offering subsidies to individuals to help cover the costs. But the long-term goal is to work with Congress on a lasting solution to reduce broadband prices for all consumers.
The White House plans on securing the funding through a corporate tax hike and other tax changes, which the Biden administration says will raise $2 trillion over 15 years. However, the president’s jobs plan will need to pass Congress. Lawmakers from both parties are already critiquing the proposal, which also calls for funding for roads, the electric grid, schools, and manufacturing.
“This is not nearly enough,” US Rep. Alexandria Ocasio-Cortez tweeted yesterday. “Needs to be way bigger.” Senator John Barrasso (R-Wyoming), meanwhile, slammed the job plan as “a Trojan horse for more liberal spending and higher taxes.”