Policy AnalysisAccessing Stimulus Funds

By Martin Davis

President Obama's Stimulus Package and the ICT Industry

It looks as if passing the $787 billion American Recovery and Reinvestment Act of 2009 (ARRA) was the easy part. Going forward, members of the ICT industry must figure out how much money is available to them — and what the rules for applying for those funds will be.

Both issues present moving targets, which is why TIA has established a Stimulus Package page specifically dedicated to identifying streams of grant funds and tracking developments as broadband grant policies are established. The site will be a clearinghouse of information for ICT leaders looking for one set of instructions on how to apply for and receive federal grant funding. Beyond the basics of providing grant administration contacts for the several agencies that will be awarding grant funding and specifics on grant applications, this site will also permit TIA members to assist the association as it creates recommendations to present to the agencies responsible for grant distribution.

How Much Money Is There?

Based upon TIA's reading of the Stimulus Package, some $26 billion, represented in the chart below, will be available for competitive bidding by ICT-related industries.

The largest portion of dollars is committed to broadband build-out and deployment in rural areas, which reflects President Obama's commitment to ensure that all Americans have access to broadband connections. Already, the two government agencies responsible for awarding the grants — the Department of Commerce's National Telecommunications and Information Administration (NTIA) and the Department of Agriculture's Rural Utilities Service (RUS) — are acting to establish guidelines for distributing these funds (PDF). Additionally, the Federal Communications Commission (FCC) is advising NTIA on how its grant policies should be crafted, and the Office of Management and Budget (OMB) is providing all agencies guidance on how to administer grant programs. All NTIA grants must be awarded by September 2010 under the ARRA. The agencies administering grants in the remaining six funding areas will shortly begin this process as well.

TIA's Government Affairs office is working closely with NTIA, RUS, the FCC, and OMB as the guidelines are being crafted, promoting a technology-neutral process that coordinates use of the available funds to build out broadband to unserved and underserved areas of the United States as efficiently and effectively as possible.

TIA's Stimulus Package page will be updated as new information from the agencies handling these grants becomes available, as well as a "Roadmap to Recovery" to help companies of all sizes navigate the grants process.

Shaping the Discussion

Organizations that are members of TIA can get involved in formulating the policy positions that the association will present to those government agencies handling the grants. Comments for both NTIA and RUS, as well as for the OMB, are currently being discussed and circulated among member companies. Further, TIA has already met with FCC leaders to advise them as they assist NTIA in forming grant policy. Additionally, TIA President Grant Seiffert presented TIA's policy recommendations on NTIA grant eligibility on March 16, 2009, before the NTIA and RUS.

TIA members work closely with TIA's Office of Government Affairs to craft the recommendations the association will make on behalf of its members. This close working relationship enables businesses — large, small, and in-between — to have a hand in determining how funds will be distributed.

If you're not already a TIA member, we encourage you to consider joining. There's a lot at stake in the coming months, and TIA is committed to helping your business make the most of these opportunities.