economicsSix Ways Texas is Closing the Digital Divide

Broadband Development Office Issues Notices for Funding, Other Initiatives

August 2024 | By Kelly Langford

Texas’ economy and quality of life depend on internet access, a crucial utility for participation in society, from education and health care to business and public safety.

Since the 87th Legislature established the Broadband Development Office (BDO) in 2021 under the purview of the Texas Comptroller of Public Accounts, Comptroller Glenn Hegar and BDO administrators and staff have met with Texans throughout the state, researched their needs and developed programs to award grants and other incentives to projects that will expand broadband service in underserved areas. Here’s the latest on some key initiatives:

1. Pole Replacement Program Accepting Grant Applications

See the big picture and learn how and why Texas is working to close the digital divide at DigitalOpportunityforTexas.com.

Thanks to the Broadband Infrastructure Fund (BIF) passed by lawmakers and approved by Texas voters last year, $75 million is now available for the Pole Replacement Program, which published a Notice of Funding Availability (NOFA) July 29. The program aims to accelerate broadband deployment to individuals in rural areas by reimbursing a portion of pole replacement costs. Applications will be accepted Sept. 3-10. Eligible applicants are pole owners and retail broadband service providers that have replaced poles in qualifying areas to affix qualifying broadband facilities.

2. BOOT II Grant Applications Being Accepted for Broadband Infrastructure

The BDO is accepting a second round of grant applications for the Bringing Online Opportunities to Texas (BOOT) Program. These funds will support broadband infrastructure projects that bring high-speed, reliable internet service to eligible locations in 24 selected counties across the state. Two counties were selected in each of the Comptroller’s 12 economic regions based on their percentage of unserved and underserved locations.

BOOT II Program’s NOFA was published July 11 on the Electronic State Business Daily within Texas SmartBuy, with additional information posted July 31. The deadline to email applications is Aug. 26 at 2 p.m.

The BOOT Program is funded by the federal Capital Projects Fund and the Broadband Infrastructure Fund. The first round of grants awarded $11.9 million to 20 projects that will connect 1,729 locations. Round one awardees are listed on the BOOT Program webpage.

3. BDO Officials Consider Range of Uses for BIF Money

The BIF is now fully funded with $1.5 billion. Besides the Pole Replacement Program, $155.2 million has been transferred to Next Generation 911 Service, which will replace the analog structure with a system that is digital and internet protocol based, and $303.4 million has been set aside for BOOT II. The BDO also is considering other uses for BIF funds, including:

• Assisting select applicants with the 25 percent matching requirement for the Broadband Equity, Access, and Deployment (BEAD) Program.
• Connecting locations that the BEAD program may not cover, such as community anchor institutions and multi-dwelling units.
• Establishing a Texas middle mile program.
• Developing digital opportunity pilot programs.
• Supporting new and existing workforce development programs.

4. Counties Tapped to Participate in Technical Assistance Program (TAP)

TAP is an initiative to bolster broadband infrastructure, particularly providing planning support for underserved counties. TAP will help local governments and communities identify broadband development opportunities and prepare for forthcoming state and federal funds. Thirty-two counties across Texas will receive no-cost broadband planning assistance from experts through the program.

The first group of counties began receiving services Aug. 5. More details and a list of the 32 counties are on the TAP webpage.

5. Texas’ BEAD Challenge Process to Begin Soon

Authorized by the federal Infrastructure Investment and Jobs Act (IIJA), the BEAD Program will provide states funding to help expand high-speed internet access and use. Texas was allocated $3.3 billion to support infrastructure deployment, mapping and adoption, including planning and capacity-building. The challenge process, tentatively planned to begin later this year, will ensure the BDO has an accurate list of eligible locations. Internet service providers, nonprofit organizations and units of local government are encouraged to participate in this process.

Once the challenge process is completed, the BDO will begin its subgrantee selection process. Program progress and details are on the IIJA BEAD Program webpage.

6. BDO Applies for State Digital Equity Capacity Grant Program (SDECGP)

Texas was allocated $55.6 million from the IIJA to implement the digital opportunity initiatives identified in the Texas Digital Opportunity Plan, and the BDO submitted its SDECGP application earlier this summer.

The National Telecommunications and Information Administration expects to begin issuing awards to eligible states by Aug. 28, with the possibility of additional awards on a rolling basis. SDECGP funds will be used to expand broadband connections and digital literacy across the state, with programs tentatively beginning in late 2024 or early 2025.

The BDO will share more information soon to explain how Texas plans to administer the SDECGP, including details on how potential subgrantees can apply for funding.

Local governments, nonprofit organizations and community advocates can learn how to access this historic investment in broadband infrastructure in these recently archived webinars.

See past Fiscal Notes coverage about efforts to bring better broadband to all Texans.