City of Houston Federal Update

Bipartisan Infrastructure Law

Broadband GraphicBroadband

Broadband internet is necessary for Americans to do their jobs, to participate equally in school learning, health care, and to stay connected. Yet, by one definition, more than 30 million Americans live in areas where there is no broadband infrastructure that provides minimally acceptable speeds.

The legislation’s $65 billion investment – which builds on the billions of dollars provided for broadband deployment in the American Rescue Plan – will help ensure every American has access to reliable high-speed internet with an historic investment in broadband infrastructure deployment, just as the federal government made a historic effort to provide electricity to every American nearly one hundred years ago.

The bill will also help lower prices for internet service by requiring funding recipients to offer a low-cost affordable plan, by requiring providers to display a “Broadband Nutrition Label” that will help families comparison shop for a better deal, and by boosting competition in areas where existing providers aren’t providing adequate service. It will also help close the digital divide by passing the Digital Equity Act (which creates new grant programs for digital inclusion), by requiring the Federal Communications Commission to adopt rules banning digital redlining, and by creating a new, permanent program to help more low-income households access the internet. Over one in four households will be eligible for this new Affordable Connectivity Benefit.

The majority of the IIJA’s $65 billion for broadband deployment and affordability this investment is for the Broadband Equity, Access, and Deployment (BEAD) Program, which will be distributed to states and territories to finance broadband deployment by the National Telecommunications and Information Administration (NTIA).

These crucial investments will help connect all Americans and ensure that unserved populations can reap the benefits of a 21st century digital economy.

The legislative bodies of both the City of Houston and Harris County approved a Memorandum of Understanding (MOU) on May 12, 2023 to establish both Parties’ intent to collaborate, coordinate, and prioritize digital equity investments and the enablement of broadband network infrastructure within the Parties’ overlapping geographical areas in unserved and underserved communities. 

  • MOU includes the City of Houston’s collaboration and coordination with Harris County in the County’s submission to the National Telecommunications and Information Administration’s (“NTIA”) Broadband Equity, Access, and Deployment (“BEAD”) Program’s grant opportunities under and authorized by the Infrastructure Investment and Jobs Act of 2021, Division F, Title I, Section 60102, Public Law 117-58, 135 Stat. 429 (November 15, 2021) (“Infrastructure Act or Act”) also known as the Bipartisan Infrastructure Law. 
  • Both the City and County have collaborated and prepared in joint effort for a Request for Proposal (“RFP”) to solicit proposals from established entities to design, build, test, implement, and operate a self-sustaining solution for telecommunication infrastructure deployment, including fiber optic-based broadband infrastructure network.  This will provide affordable broadband and digital connectivity in certain unserved and underserved communities as part of the City’s Digital Equity Initiative and ensure high-speed broadband is available to all County residents and businesses, particularly in unserved and underserved areas and to Community Anchor Institutions, for the long-term social and economic benefits available to the County. This RFP may also lead to potential private public partnership models and is expected to advertise in August 2023.
  • The City and County jointly prioritized certain unserved and underserved communities, including the ten (10) designated Houston Complete Communities (https://www.houstoncc.org/).

In June 2023 the Biden administration announced state funding allocations for the $42.5 billion Broadband, Equity, Accessibility and Deployment (BEAD) grant program, which paves the way for all Americans to have access to affordable, reliable, high-speed internet service by 2030.

The State of Texas received the highest allocation at more than $3.3 billion, followed by California at $1.9 billion and Missouri at $1.7 billion. Nineteen states were awarded more than $1 billion. (However, when measured per-capita the State of Texas allocation ranks 35th compared to all other states.)

The State of Texas Broadband Development Office (BDO) is currently analyzing the planning the proposed allocations of the state’s $3.3B to local Texas cities and counties.  Upcoming State of Texas BDO action items for submission to NTIA include:

  • Five-Year Action Plan due by August 28, 2023.
  • State Digital Opportunity Plan due by December 1, 2023
  • Initial Proposal due by late December 2023.
  • Texas BDO expects the BEAD Program to be operational in 2024 with funds allocated to local communities in 2025.

One of the biggest challenges for both the City of Houston and Harris County is despite clearly documented unserved and underserved communities, the findings go against what was identified in the rankings. While the City and County successfully documented a challenge to the FCC’s initial coverage map, we remain concerned that urban areas with the State of Texas will not receive the per capita pro rata share as compared to rural areas.