Wiring Up: Iowa's Support for Broadband Expansion

Iowa Governor Kim Reynolds began the 2021 Iowa Legislative Session calling for a bold investment in broadband infrastructure to ensure broadband connection to all Iowans across the state by 2025. In response, legislators overwhelmingly passed House File 848 with an investment of $100 million for the coming fiscal year.

Over the past few decades, broadband access has become essential for residential and commercial purposes.  The COVID-19 pandemic exacerbated this need with increased working from home and remote schooling.

Iowa’s investment in broadband outpaces our neighboring states and results in economic development opportunities for businesses.

Important Changes:

• Grants for companies that develop broadband infrastructure are still limited to “Targeted Service Areas,” but the definition of Targeted Service Areas has changed.
  • The previous definition of “Targeted Service Area” generally included a census block where no communication service provider offers or facilitates broadband service at the download or upload speeds of 25/3 Mbps.
  • The Broadband Bill amends the “Targeted Service Area” definition into three tiers:
    • Tier 1 - means a maximum download speed of less than 25 megabits per second and a maximum upload speed of less than three megabits per second.
    • Tier 2 - means a minimum download speed of greater than or equal to 25 megabits per second but less than 50 megabits per second.
    • Tier 3 - means a minimum download speed of greater than or equal to 50 megabits per second but less than 80 megabits per second.

• Generally, projects must provide minimum download and upload speeds of 100/100 Mbps to be eligible to receive a grant under the Empower Rural Iowa Grant Program. If a project provides minimum download and upload speeds of 100/100 Mbps, the grant amounts will vary based on whether a grant applicant’s Targeted Serviced Area is in Tier 1, 2, or 3. The push for higher speeds was intended to “future proof” state investments and provide opportunities for businesses. This investment is in conjunction with new incentives from the Iowa Economic Development Authority (IEDA) titled Manufacturing 4.0 which will incentivize manufacturing investment to connect technology with business operations.
  • • For Tier 1 Targeted Service Areas, the grant amount shall cover up to 75% of the communications service provider’s project costs.
      • If a grant application proposes to provide minimum download and upload speeds of 100/20 Mbps, and the Targeted Service Area is Tier 1, then the grant shall cover up to 50% of the communication service provider’s project costs.
    • For Tier 2 Targeted Service Areas, the grant amount shall cover up to 50% of the communications service provider’s project costs.
    • For Tier 3 Targeted Service Areas, the grant amount shall cover up to 35% of the communications service provider’s project costs.

• Twenty percent of the total amount of the grants to be awarded are reserved for projects that will result in the installation of broadband infrastructure in “difficult to serve” target service areas with download and upload speeds less than or equal to the Tier 1 download and upload speeds. A target service area is considered to be “difficult to serve” if the soil conditions, topography, or other local conditions make the installation of broadband infrastructure in the targeted service area more time-consuming or labor-intensive compared to other areas of the state.

• The bill also makes requisite changes concerning the criteria that the Office of the Chief Information Officer uses to assess grant applications.

In addition to this large investment in broadband infrastructure in Iowa, legislators have also authorized the IEDA to create supportive certification programs for “Broadband and Telecommuter Forward” communities.

To receive an email update when applications for broadband grants open, click here.

If you have questions about the new Broadband Bill or other public broadband investment through federal COVID-19 relief bills, contact your Nyemaster Goode attorney.