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Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Bipartisan Bills Introduced to Correct Tax Law Hindering Rural Co-op Broadband

Last November, we reported on a change to the tax code that is deterring rural telephone and electric cooperatives from leveraging government funding to expand broadband access. We were alerted to the issue by the office of Senator Tina Smith (D-MN), who sent a letter to Treasury Secretary Steven Mnuchin and IRS Commissioner Charles Rettig requesting that they remedy the issue and announcing her intention to introduce corrective legislation.

Federal elected officials have introduced such a measure, called the Revitalizing Underdeveloped Rural Areas and Lands (RURAL) Act. Senator Smith together with Senator Rob Portman (R-OH) introduced the Senate version of the bill, S. 1032, in early April, followed by Representatives Terri Sewell (D-AL) and Adrian Smith (R-NE), who introduced a companion bill, H.R. 2147, in the House a few days later. The RURAL Act would ensure that co-ops, which are many rural communities’ only hope for better connectivity, could take full advantage of federal and state funding for broadband networks.

Addressing Legal Ambiguity

Rep. Doug Collins Leads Charge for CAF Accountability

While 97 percent of Georgia’s urban population has access to broadband, the urban-rural digital divide in the state remains stark and only 70.9 percent of the rural population has that access. Considering estimates are based on self-reported data from incumbent providers and determined broadly by census block, the data overstates the reality on the ground. Representative Doug Collins from Georgia’s 9th congressional district is now leading the charge to mitigate this disparity, not only in his home state but in rural regions throughout the country. In a recent “Dear Colleague” letter, the top Republican on the House Judiciary Committee stated his intentions of introducing the CAF (Connect America Fund) Accountability Act at the start of the 116th Congress. Collin, a Republican representing Georgia's 9th District, introduced H.R. 427 on January 10th. If passed, the bill will create stricter requirements for the Federal Communications Commission (FCC)’s broadband infrastructure funding under CAF.

Reaching for Accountability

CAF was designed to subsidize network deployments in unserved rural areas, which have often been overlooked due to the high expense of constructing infrastructure for few and scattered populations. While many providers that have received this funding have used it properly, as Collins stated, “others have taken taxpayer dollars but failed to fulfill their obligations to their consumers… instead using taxpayer dollars ineffectively or inappropriately – turning their backs on those families at the last mile.”

Currently, CAF recipients are required to provide speeds of at least 10 Mbps download and 1 Mbps upload. While this threshold is well below the current FCC definition of “broadband” service of at least 25 Mbps/3 Mbps, Collins noted that in his home district of Northeast Georgia, a region where a majority of ISPs are CAF recipients, consumers report speeds that are “consistently abysmal, sometimes not even reaching 3 Mbps downstream and 1 Mbps.”

Rep. Doug Collins Leads Charge for CAF Accountability

While 97 percent of Georgia’s urban population has access to broadband, the urban-rural digital divide in the state remains stark and only 70.9 percent of the rural population has that access. Considering estimates are based on self-reported data from incumbent providers and determined broadly by census block, the data overstates the reality on the ground. Representative Doug Collins from Georgia’s 9th congressional district is now leading the charge to mitigate this disparity, not only in his home state but in rural regions throughout the country. In a recent “Dear Colleague” letter, the top Republican on the House Judiciary Committee stated his intentions of introducing the CAF (Connect America Fund) Accountability Act at the start of the 116th Congress. Collin, a Republican representing Georgia's 9th District, introduced H.R. 427 on January 10th. If passed, the bill will create stricter requirements for the Federal Communications Commission (FCC)’s broadband infrastructure funding under CAF.

Reaching for Accountability

CAF was designed to subsidize network deployments in unserved rural areas, which have often been overlooked due to the high expense of constructing infrastructure for few and scattered populations. While many providers that have received this funding have used it properly, as Collins stated, “others have taken taxpayer dollars but failed to fulfill their obligations to their consumers… instead using taxpayer dollars ineffectively or inappropriately – turning their backs on those families at the last mile.”

Currently, CAF recipients are required to provide speeds of at least 10 Mbps download and 1 Mbps upload. While this threshold is well below the current FCC definition of “broadband” service of at least 25 Mbps/3 Mbps, Collins noted that in his home district of Northeast Georgia, a region where a majority of ISPs are CAF recipients, consumers report speeds that are “consistently abysmal, sometimes not even reaching 3 Mbps downstream and 1 Mbps.”

Rep. Doug Collins Leads Charge for CAF Accountability

While 97 percent of Georgia’s urban population has access to broadband, the urban-rural digital divide in the state remains stark and only 70.9 percent of the rural population has that access. Considering estimates are based on self-reported data from incumbent providers and determined broadly by census block, the data overstates the reality on the ground. Representative Doug Collins from Georgia’s 9th congressional district is now leading the charge to mitigate this disparity, not only in his home state but in rural regions throughout the country. In a recent “Dear Colleague” letter, the top Republican on the House Judiciary Committee stated his intentions of introducing the CAF (Connect America Fund) Accountability Act at the start of the 116th Congress. Collin, a Republican representing Georgia's 9th District, introduced H.R. 427 on January 10th. If passed, the bill will create stricter requirements for the Federal Communications Commission (FCC)’s broadband infrastructure funding under CAF.

Reaching for Accountability

CAF was designed to subsidize network deployments in unserved rural areas, which have often been overlooked due to the high expense of constructing infrastructure for few and scattered populations. While many providers that have received this funding have used it properly, as Collins stated, “others have taken taxpayer dollars but failed to fulfill their obligations to their consumers… instead using taxpayer dollars ineffectively or inappropriately – turning their backs on those families at the last mile.”

Currently, CAF recipients are required to provide speeds of at least 10 Mbps download and 1 Mbps upload. While this threshold is well below the current FCC definition of “broadband” service of at least 25 Mbps/3 Mbps, Collins noted that in his home district of Northeast Georgia, a region where a majority of ISPs are CAF recipients, consumers report speeds that are “consistently abysmal, sometimes not even reaching 3 Mbps downstream and 1 Mbps.”

Rep. Doug Collins Leads Charge for CAF Accountability

While 97 percent of Georgia’s urban population has access to broadband, the urban-rural digital divide in the state remains stark and only 70.9 percent of the rural population has that access. Considering estimates are based on self-reported data from incumbent providers and determined broadly by census block, the data overstates the reality on the ground. Representative Doug Collins from Georgia’s 9th congressional district is now leading the charge to mitigate this disparity, not only in his home state but in rural regions throughout the country. In a recent “Dear Colleague” letter, the top Republican on the House Judiciary Committee stated his intentions of introducing the CAF (Connect America Fund) Accountability Act at the start of the 116th Congress. Collin, a Republican representing Georgia's 9th District, introduced H.R. 427 on January 10th. If passed, the bill will create stricter requirements for the Federal Communications Commission (FCC)’s broadband infrastructure funding under CAF.

Reaching for Accountability

CAF was designed to subsidize network deployments in unserved rural areas, which have often been overlooked due to the high expense of constructing infrastructure for few and scattered populations. While many providers that have received this funding have used it properly, as Collins stated, “others have taken taxpayer dollars but failed to fulfill their obligations to their consumers… instead using taxpayer dollars ineffectively or inappropriately – turning their backs on those families at the last mile.”

Currently, CAF recipients are required to provide speeds of at least 10 Mbps download and 1 Mbps upload. While this threshold is well below the current FCC definition of “broadband” service of at least 25 Mbps/3 Mbps, Collins noted that in his home district of Northeast Georgia, a region where a majority of ISPs are CAF recipients, consumers report speeds that are “consistently abysmal, sometimes not even reaching 3 Mbps downstream and 1 Mbps.”