Senate stimulus bill reduces broadband grants by $2 billion

The compromise Senate economic stimulus bill reduces funding for broadband grants from $9 billion to $7 billion while retaining tax breaks for high-speed Internet deployment in underserved areas, setting the stage for Senate passage tomorrow and rough negotiations to reconcile that legislation with a very different House measure. Fifty percent of the funds in the revised Senate bill are to be used for projects in rural areas.
“On the day when we learned 3.6 million people have lost their jobs since this recession began, we are pleased the process is moving forward and we are closer to getting Americans a plan to create millions of jobs and get people back to work,” said White House Press Secretary Robert Gibbs, after a deal was reached Friday with help of three moderate Senate Republicans.
Economic recovery legislation, which the Democratic-led Congress wants to pass and send to the White House by Presidents’ Day, is expected to be cost from $800 billion to $827 billion.
The Congressional Budget Office recently reported that a major portion of the billions earmarked for broadband grants will not be spent within the next 18 months. President Obama and Democrats previously said they expected 75% of economic stimulus money to be spent in that timeframe.