2023-06-27 09:04:28 ET
The administration of U.S. President Joe Biden has announced an ambitious plan to spend $42 billion U.S. to make high-speed broadband internet universally accessible by 2030.
The “Broadband Equity Access and Deployment Program” is included in the Biden administration’s $1 trillion U.S. infrastructure legislation.
Texas and California, the two most populous U.S. states, will receive $3.1 billion U.S. and $1.9 billion U.S. respectively to expand internet access in their territories.
Less populous states such as Virginia and Louisiana will also receive billions in federal funding as they have large rural areas and the lowest broadband internet penetration in the U.S.
“It's the biggest investment in high-speed internet ever,” said President Biden in unveiling the program at the White House.
The Biden administration estimates that about 8.5 million Americans currently lack access to a broadband internet connection.
Broadband companies such as %Verizon () and AT&T (T) have been reluctant to provide internet access to rural communities because the investments are expensive and the areas offer few subscribers.
The internet access announcement comes as President Biden begins his 2024 re-election campaign.
The 2024 election is expected to largely be a referendum on President Biden's economic record. The president has benefitted from low unemployment but been criticized for high inflation.
More than half (54%) of Americans disapprove of how the U.S. president is handing the economy, while 35% approve, according to a poll by the Reuters News Agency.
States must submit plans later this year that will unlock 20% of the federal funds. Once the plans are finalized, which could take until 2025, the government will release the remaining money to the 50 U.S. states.