Summary
The Infrastructure Investment and Jobs Act of 2021 provided $65 billion for broadband expansion and digital equity, the largest federal investment in internet infrastructure in U.S. history. The BEAD program ($42.45 billion) and the Digital Equity Act programs ($2.75 billion) are the centerpieces, both distributed through state broadband offices. In 2026, states are actively subgranting BEAD funds to internet service providers and planning to deploy the last mile connections to unserved and underserved communities across the country.
BEAD Program: $42.45 Billion for Broadband Infrastructure
The Broadband Equity, Access, and Deployment (BEAD) program, administered by the National Telecommunications and Information Administration (NTIA) within the Department of Commerce, is the largest broadband infrastructure investment ever made by the federal government. Each state and territory received a minimum allocation of $25 million, with the remainder distributed based on the number of unserved locations. States with large rural unserved populations, including West Virginia, Mississippi, Montana, and Louisiana, received allocations exceeding $1 billion.
BEAD funds flow from NTIA to states, which then subgrant to internet service providers (ISPs), utilities, electric cooperatives, municipalities, and nonprofits to deploy broadband infrastructure to unserved locations (no service at 25/3 Mbps) and underserved locations (no service at 100/20 Mbps). Fiber-to-the-home is the preferred technology. Each state's BEAD program has its own application process and timeline, managed by the state's broadband development office or economic development agency. ISPs and other infrastructure providers seeking BEAD subgrants should register with their state broadband office and monitor state-issued Notices of Funding Availability (NOFAs). Applicants must demonstrate technical and financial capacity, provide detailed project plans, and commit to ongoing service and affordability requirements including participation in the Affordable Connectivity Program or equivalent.
USDA ReConnect Program
The USDA ReConnect Loan and Grant Program, administered by the Rural Utilities Service (RUS), provides funding specifically to bring high-speed broadband to rural areas that currently lack service at 100 Mbps download and 20 Mbps upload. ReConnect has distributed over $3 billion through multiple rounds since 2019, with additional funding provided by the Infrastructure Investment and Jobs Act. Grants cover up to 75% of eligible project costs (or up to 100% for projects in extremely rural areas meeting specific eligibility criteria), with the remainder financed through loans or applicant match.
Eligible applicants include ISPs, utilities, electric cooperatives, municipalities, tribal governments, and nonprofits with the legal authority and technical capacity to build and operate broadband networks. Projects must serve areas where at least 90% of locations lack sufficient broadband. The ReConnect application process is extensive, requiring detailed engineering plans, financial projections, community needs assessments, and evidence of organizational capacity. Applications are reviewed competitively, with priority for projects serving lower-income rural areas, tribal lands, and areas with the lowest existing connectivity. USDA typically opens ReConnect funding rounds once or twice per year; organizations should subscribe to USDA Rural Development email alerts and begin preparing applications well before a round opens.
Digital Equity Act: $2.75 Billion for Digital Inclusion
Separate from broadband infrastructure deployment, the Digital Equity Act programs funded by the Infrastructure Investment and Jobs Act address the demand side of the digital divide: ensuring that all Americans have the skills, devices, and affordable connectivity they need to fully participate in the digital economy. The program has two components: State Digital Equity Capacity Grants ($1.44 billion to all states and territories for implementing digital equity plans) and the Digital Equity Competitive Grant Program ($1.31 billion for direct grants to eligible entities).
State Digital Equity Capacity Grants flow to state broadband offices or designated agencies, which then make subgrants to libraries, community anchor institutions, community colleges, housing authorities, workforce development organizations, and nonprofits delivering digital inclusion services. Organizations eligible for these subgrants include those serving populations with low rates of digital adoption: older adults, individuals with disabilities, low-income households, rural residents, non-English speakers, veterans, and individuals with low literacy. The Digital Equity Competitive Grant Program provides direct awards to coalitions of organizations serving these populations. Eligible lead applicants include state and local governments, tribes, nonprofits, and educational institutions. Coalition members can include for-profit entities but they cannot be the lead applicant.
FCC Programs: E-Rate, Rural Health Care, and Lifeline
The Federal Communications Commission administers several universal service programs that support broadband access. The E-Rate program (Schools and Libraries Program) provides discounts of 20–90% on telecommunications, internet access, and network equipment for eligible schools and libraries. The discount percentage is based on poverty indicators (free and reduced lunch percentage) and rural status. E-Rate disbursements exceed $4 billion annually and have been a major factor in bringing high-speed broadband to schools nationwide.
The Rural Health Care Program provides support to rural healthcare providers for telecommunications and broadband services, enabling telemedicine connections. The Healthcare Connect Fund subsidizes 65% of the cost of broadband services for rural health care facilities. The Lifeline program provides a monthly discount on phone and broadband service for eligible low-income consumers — $9.25 per month for most consumers, and $34.25 per month for consumers on Tribal lands. Eligible consumers can enroll through their service provider. The FCC also oversees the Broadband Data Collection, which uses a new mapping methodology to identify unserved and underserved locations — the same map used to determine BEAD and ReConnect eligibility. Individuals and communities who believe their location is incorrectly mapped as served can file a challenge through the FCC's mapping portal.
How to Navigate State Broadband Office Programs
The most important step for any organization seeking broadband or digital equity funding in 2026 is to identify and engage with its state broadband office. The BEAD and Digital Equity Act programs are state-administered, meaning the application processes, timelines, and priorities are determined at the state level within federal guidelines. Most states have established dedicated broadband development offices (examples: Connect Texas, ConnectMaine, BroadbandOhio) that publish funding opportunities, hold stakeholder meetings, and provide technical assistance to applicants.
Organizations should register for state broadband office email lists and attend public meetings where states present their initial and final proposals for BEAD and Digital Equity programs. Providing public comment during these processes helps ensure that the communities and populations most in need are prioritized in final program designs. Municipal governments, tribal nations, electric cooperatives, and established nonprofits are all well-positioned to apply for or participate in state broadband subgrant programs. First-time applicants should review their state's published program rules carefully, as requirements for matching funds, service affordability commitments, buildout timelines, and reporting vary significantly across states.