The White House’s rollout of $42 billion in funding for high speed internet expansion is expected to begin at the end of this year, doling out 80% of funds by 2025. Broadband expansion projects will likely boost US construction spending and, due to stipulations requiring construction materials used in projects funded by the 2021 Infrastructure Investment and Jobs Act to be made in the US, domestic fiber optic cable manufacturers should benefit as well. Several key cable manufacturers have already begun to expand capex efforts to increase capacity in anticipation of a boom in sales.
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According to the White House, there are still some 8.5 million households and small businesses across the US that lack access to reliable broadband connections and infrastructure. Earlier this week, President Biden said the federal government would address this issue across all 50 states with a sum of $42 billion to be spent on making access to high-speed broadband universal by 2030. Those funds will be derived from the $1.2 trillion Infrastructure Act signed into law in November 2021. Cnet reports that an additional $14.2 billion in funding from that bill is planned to create a permanent $30 per month subsidy program to make high-speed internet more affordable for low-income people. Due to an additional agreement between the federal government and 20 internet service firms, meant to provide discounted service to certain households, the subsidy program could effectively make internet access free for many.
The National Telecommunications and Information Administration (NTIA) will approve plans that will be submitted by each of the US’s 50 states and territories by December. Texas and California are the top destinations for this wave of broadband spending at $3.1 billion and $1.9 billion, respectively. By the end of 2025, at least 80% of the funding should be allocated. Per The Verge, NTIA announced their reception of…
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