Problems loom for broadband stimulus

Although $7.2 billion in grants and loans are set for distribution as part of the broadband stimulus plan under the American Recovery and Reinvestment Act (.pdf), federal agencies have only awarded $2.2 billion so far.

That means the government must award approximately $4.8 billion--more than twice the amount they awarded during the first round, in less time, to meet the goals of the final, September 30 deadline, according to a new Government Accountability Office report.

GAO predicts that the agencies handing out the money--the Commerce Department's National Telecommunications and Information Administration and the Department of Agriculture's Rural Utilities Service--will face greater pressure to approve awards, and will have incomplete data on the current status of broadband service nationwide.

NTIA and RUS said they are streamlining the program review process, using Census tract data to verify the presence of service and putting oversight plans in place to monitor compliance.

But those agencies may not have sufficient resources to actively monitor awarded broadband projects because the number of projects to monitor will grow and GAO predicts the projects will be "much larger and more diverse than projects funded under the agencies' prior broadband-related programs. Additionally, NTIA and RUS must "ensure that the recipients construct the infrastructure projects in the entire project area, not simply the area where it may be most profitable for the company to provide service."

GAO recommends the secretaries of Agriculture and Commerce incorporate into their risk-based monitoring plans, steps to address variability in funding levels for postaward oversight beyond September 30, 2010.

Both agencies agreed that they face greater challenges in stimulus funding in the second cycle, but took no position on GAO's recommendations and noted that they are currently working to complete their programs on time and on budget.

For more:
- see this GAO report GAO-10-823 (.pdf)
- visit recovery.gov
- see the American Recovery and Reinvestment Act (.pdf)

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