ABSTRACT
We look specifically at state broadband grant programs to draw lessons on policy design and implications for current federal policy. We identify both innovative and conservative state policy approaches and explore differences across metro and rural communities. Using data from the Pew Charitable Trusts on broadband grant programs from 17 states, we find states primarily funded fiber broadband projects, and local Internet Service Providers, but few funded electric cooperatives or municipal operators. To address the digital divide, state grants primarily went to low-density and rural counties, but recipient counties also tended to be more educated, have smaller minority population and lower poverty. Thus, local capacity and race still matter. In addition, some states have high grant match requirements, which can increase the disparities faced by rural providers and low-income and minority communities. We recommend policy reform to ensure state funds reach communities less likely to be served, and to promote participation of non-traditional broadband providers.
