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Funding
Learn about broadband funding mechanisms designed to address the needs of unserved and underserved communities, and how to leverage funding for specific broadband development projects through grants, low-interest loans and other financial incentives provided by state and federal governments.
By following these steps, you will have a better idea of the broadband needs in your community, which will guide you in shaping a broadband initiative!
1
Identify how much it will cost to meet community goals.
2
Determine potential funding models for your community.
- Is there a matching cost-share opportunity?
- Does the community already have funds available, or will it need to borrow?
3
Research federal funding programs.
Be sure to learn what federal funding opportunities allow for and what they don’t.
4
Research grant opportunities in Texas.
The BDO is working to develop a competitive grant program, and having the necessary information ready will better prepare communities to develop their applications when funding becomes available!
We anticipate our grant program will go live in early 2023.
When preparing an application for funding…
Determine eligible uses of funding in connection with last-mile broadband deployment projects. Funds are not eligible for operating costs.
Subgrantees need to provide a universally available, low-cost service plan at 100/20 Mbps or faster. Subgrantees also need to participate in the Federal Communications Commission’s (FCC) Affordable Connectivity Program (ACP).
Prepare these resources before submitting an application for funding:
- Financial statements that are audited by an independent certified public accountant
- Documentation that demonstrates sustainability of proposed projects
- Profile of management personnel including resumes and organizational charts detailing all parent companies, subsidiaries and affiliates
- Network design, diagram, project costs, build-out timeline and milestones for project implementation
- Technical qualifications and ability to complete, operate, and carry out the funded project activities
- The operational capability to qualify to complete and operate the project
- Audited financial statements that demonstrate financial capabilities
- A letter demonstrating local government support
- Activities related to increasing digital adoption and literacy
- Coordination and collaboration with local community
- A workforce that meets high safety and training standards
Note: All IIJA BEAD and ARPA CPF funding should be considered taxable income.
Resources
- IIJA Funding Notice of Funding Opportunity (PDF)
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- 25 percent match requirement
- Bank letters of credit and legal opinion on the lines of credit
- Subgrantees can be:
- Cooperatives
- Nonprofits
- Public-private partnerships
- Private companies
- Public or private utilities
- Public utility districts
- Local governments
- Cascading priorities
- Unserved first (less than 25/3 Mbps)
- Underserved next (lacking 100/20 Mbps)
- If funding remains: Community Anchor Institutions (lacking 1/1 Gbps )
- Program requirements
- Speeds more than 100/20 Mbps for homes and businesses
- Latency below 100 milliseconds round trip 95 percent of the time
- Deploy and begin service within four years of funding
- Must offer a low-cost affordability plan
- No data usage caps
- Locations served exclusively by satellite or in an entirely unlicensed spectrum will be considered unserved
- Provide ownership information consistent with the requirements set forth in 47 CFR 1.2112(a)(1)-(7)
- Subgrantees must adhere to environmental and national historical preservation requirements
- Buy America provisions
- All funds need to be expended no later than four years after they are received.
- CPF Funding Guidance (PDF)
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- No match requirement
- Funds can only be used in areas with service less than 100/20 Mbps
- Subgrantees will need to complete an environmental checklist (PDF)
- Projects must meet ALL the following criteria:
- Invests in capital assets designed to directly enable work, education and health monitoring
- Designed to address a critical need that resulted from or was made apparent or exacerbated by the COVID-19 public health emergency
- Designed to address a critical need of the community to be served by it
- Subrecipient monitoring and reporting
- All funds need to be expended by December 2026.
Need assistance?
If you have additional questions, email the Broadband Development Office or call 833-3-TEXBDO toll-free.