The Pew Charitable Trusts found that states are generally being more proactive in protecting taxpayers by requiring matching funds and accountability measures in their broadband granting programs.

As the need for high-speed internet grows, more and more states are implementing programs that award funding to providers or local governments to build and maintain networks to service citizens. Pew examined programs in nine states to provide a slice of the current situation around the U.S.

Kathryn De Wit, manager of Pew’s broadband research initiative, told the Taxpayers Protection Alliance (TPA) that the group found successful models of all types, but public-private partnerships seemed to be the most common.

“States are finding that when providers and communities have options that gets you to a solution,” she said.

Net neutrality rears its head again in this study. Although the fervor about the issue has largely died down after the Federal Communications Commission (FCC) passed rules removing Title II restrictions on internet service providers in 2018 (and an appeals court later upheld that decision), Maine and Colorado added requirements that providers follow net neutrality rules to receive funding. TPA found in an investigation last year that the FCC had not seen an influx in complaints about blocking and throttling after the rules were repealed.

Pew notes that, “In 2019, Colorado added net neutrality requirements for Broadband Fund grant recipients. The requirements preclude ISPs that do not follow the principles of net neutrality from receiving funding from a state broadband fund. The legislation further requires that if a provider is found to have violated these standards, it must refund money it received.”

Pew also found that West Virginia treats broadband like a utility. The West Virginia Development Office has reallocated some of its federal Community Development Block Grants funds normally used for water and sewer projects to create broadband infrastructure.    

Kelly Workman, administrative director for the broadband initiative within the office, said, “If we can run waterlines through West Virginia, we can run fiber.”

Some examples of the accountability measures that Pew found:

De Wit noted that the certification process helps open up “communication between providers and local leaders in what will create opportunities for investment in the community.” 

De Wit told TPA that states are increasingly requiring grant recipients to send progress reports and provide more data, often paying the money out on the back end as the work is completed.

“States are using the data to ensure they are meeting the benchmarks of their programs,” she said. “We think the trend of accountability is a good thing and ensuring communities are getting the connections they are promised.”

Johnny Kampis is investigative reporter for the Taxpayers Protection Alliance.