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from Rep. Stephanie Herseth Sandlin HERSETH SANDLIN WORKS TO PROVIDE INCREASED BROADBAND INTERNET ACCESS IN RURAL AMERICA Families, Schools and Businesses in Underserved Rural Areas Require Critical Infrastructure April 26, 2007, Washington, D.C. – U.S. Rep. Stephanie Herseth Sandlin has introduced new legislation to promote increased access to high-speed broadband internet service in rural America. Herseth Sandlin’s bill will improve and re-focus an important broadband loan program to ensure that rural, unserved areas are properly targeted for investment in and development of this critical infrastructure. Herseth Sandlin, who is co-chair of the House Rural Working Group, said, “Access to high speed broadband service is critical to the quality of life in rural America. It has the potential to be an unprecedented catalyst for economic growth and improvements in education and health care. South Dakota schools, businesses and families – even in our most rural areas – must have equal access to the high-speed, broadband internet service that has become necessary to do business, stay connected, and stay informed.” Herseth Sandlin’s bill would improve the Rural Utility Service Broadband Loan Program. That current law is designed to provide federal loans to areas of rural America that do not currently have service. Unfortunately, due to a loophole in that law, some areas that are neither rural nor suffer a lack of service are eating up scarce resources – preventing the program’s focus from being on rural America as it should. Herseth Sandlin’s bill would better define “rural” and “urban” areas to ensure loans are being used in truly rural communities and not suburban or urban areas. The definitions in her bill closely resemble the Census Bureau definitions of urban and rural. Additionally, Herseth Sandlin’s bill ensures that loans would not be awarded to applicants proposing to serve areas that already have a broadband provider. Borrowers serving eligible communities that are at least 50 percent already served will only be eligible for a Rural Utility Service loan equivalent to the portion of households that remain unserved. According to a September 2005 Audit Report by the USDA Inspector General (IG), “In some cases, loans were issued to companies in highly competitive business environments where multiple providers competed for relatively few customers.” And according to the USDA IG report, “31 percent of the agency’s loans have served to foster competition in areas with pre-existing service rather than extending service to communities without access.” Herseth Sandlin added, “In the five years since this program’s inception, precious dollars that could be used to bring high speed internet access to rural homes, businesses and schoolhouses across America in some instances continue to be misspent and I am hopeful we can right that wrong as we re-focus the program.” The Rural Utility Service bill will be discussed in the context of the Farm Bill reauthorization. As a member of the House Agriculture Committee, Herseth Sandlin will lead efforts to ensure the changes she is recommending are implemented. # # # Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Resources. In the 110th Congress, Herseth Sandlin was appointed to serve on the Select Committee on Energy Independence and Global Warming. |
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