Minnesota to receive $652M in federal funding for broadband internet expansion

The federal government announced on Monday that Minnesota will receive approximately $652 million to expand high-speed Internet access throughout the state.

The federal infrastructure act passed by Congress in 2021 is the source of funding for the U.S. Department of Commerce. The new funds will go to rural and underserved areas that do not have high-speed internet access.

Amy Klobuchar, U.S. Senator from Minnesota, said in an exclusive interview that the grant was a “game-changer” for Minnesota.

Nearly $42.5 billion is allocated for the construction of high-speed networks in all parts of the country. Joe Biden, the president of the United States, praised the investment at the White House on Monday. “This investment will benefit all Americans – whether or not they voted me.”

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Klobuchar has been pushing for broadband funding for many years. She wrote a bill which she says was the model for a grant program that is included in the Infrastructure Act.

The Democratic Senator said that she has heard constituents repeatedly express the need for improved internet access. Farmers need it in order to use new technology, rural schools require it for online learning and small businesses depend on it for accounting and online sales.

Klobuchar stated that about 136,000 homes and businesses in Minnesota do not have access to high-speed Internet. She added that this includes two-thirds or residents of Pine County and almost half in Murray County.

She said, “It’s just the haves versus the have-nots.” “If we didn’t have an equal playing field for Greater Minnesota and the metro, we would start falling behind. This is what will put us over top.”

Rural areas are not the only ones who have difficulty accessing high-speed internet. Minneapolis’s redlined areas have the lowest broadband internet percentages.

Last month, the Minnesota Legislature also approved funding of $100 million for broadband development. Klobuchar stated that with the federal funding and this new money, Minnesota will be closer than ever before to providing high-speed internet to every resident.

Minnesota has set the goal to offer high-speed Internet access to all businesses and homes by 2026.

“Minnesota’s ambitious goal is to increase broadband access. We have a group of providers who are ready to expand our network. And we’re grateful that our federal partners help us pursue broadband for everyone,” said Gov. Tim Walz made a statement on Monday.

The funding will also be significant for neighboring states. Wisconsin will receive $1 billion, Iowa $415 millions, South Dakota $207 million, and North Dakota $130million.

Minnesota and other state must submit to the federal government by the end of this year proposals describing the allocation of money. Klobuchar stated that funding would begin to flow next year.

Klobuchar stated that traditional providers, as well as rural telephone and electric companies, will be eligible to apply for funding. However, the government can reclaim the funds if they are not used to expand broadband in a timely fashion.