Agriculture, Rural Development, Food And Drug Administration, And Related Agencies Appropriations Act, 2004
I thank my friend from North Dakota. Mr. President, if anyone in this body said the Government could invest $40 million and, in less than a year, generate commitments to invest or leverage $1.2 billion in job-creating,…
I thank my friend from North Dakota.
Mr. President, if anyone in this body said the Government could invest $40 million and, in less than a year, generate commitments to invest or leverage $1.2 billion in job-creating, productivity-enhancing and life-improving infrastructure in some of America's most rural and remote areas, I would suspect the Members of this body and the public at large would judge that to be a successful and exciting economic development strategy. That is exactly what has happened.
This broadband loan program is administered by the Rural Utility Service of the United States Department of Agriculture. In 10 short months the RUS broadband loan program has generated about $1 billion in applications, primarily in Treasury rate-of-interest loans that contain at least 20 percent equity leverage. That is a pretty good return.
Let me build on what my friend from North Dakota said. I was pretty small when the debate on REA started, the Rural Electrification Administration. There is not one Senator in this body who has not gone to an annual meeting of an REA. My first line is always: If it had not been for REA, in the country areas we would be watching television by candlelight. That is a truism. Now we are in a different era. We are in an era when there is an infrastructure of the deployment of broadband. Broadband expanded services is as important to downtown America as it is to rural areas because of their ability to communicate instantly and to move massive amounts of information instantly.
We have heard of the digital divide. This is a just one small step that closes that gap or that divide. It is working. Figures back it up. I was as surprised as anyone when this funding was taken out of the bill because it was not working. That wasn't the reason at all. Broadband technologies, whether delivered by fiber, licensed or unlicensed spectrum, or satellite, have the power to transform communities.
High-speed access to the Internet is becoming as important to the rural economic development as good roads or good sewers or even electricity itself. It opens worlds of opportunities for rural businesses, farmers, and ranchers and provides up-to-the-minute market information; and rural schools for distance learning.
We still have a boarding school in my State of Montana. You take your high school students to school on Monday morning and you do not see them until Friday night. That is remote. That is frontier.
This technology is also a way to expand curriculum and allow those young people to have the same educational opportunities as young people in the more urban areas.
Think about what it does to the rural areas as far as telemedicine. We know we have an aging population in rural areas. I have 14 counties that have no doctors at all. The delivery of health care is completely different than it was years ago.
We have as much obligation to make sure there is a buildup of broadband as we had with electricity after World War II. I know what was in our house. Our house didn't have electricity until about 1949- 1950. I know that it transformed rural America. This provides the same possibility.
With this amendment, we have restored a tool which investors can use to build up this important piece of infrastructure which will become very important to rural America.
If the Federal Government could invest $40 million and in less than a year generate commitments to invest about $1.2 billion in job creating, productivity enhancing, life improving infrastructure in some of America's most rural and emote areas, I suspect most members of the body and the public at large would judge that to be a successful and exciting economic development strategy.
That is exactly what has happened in the broadband loan program administered by the Rural Utilities Service RUS, of the United States Department of Agriculture. In ten short months, the RUS broadband loan program has generated about a billion in applications primarily for treasury rate of interest loans that contain at least 20 percent equity leverage.
Broadband technologies whether delivered by fiber, licensed or unlicensed spectrum or satellite have the power to transform communities. High-speed access to the Internet is becoming as important to rural economic development as good roads and sewers. It opens worlds of opportunity for rural business, offers farmers up to the minute market information, rural schools the chance to offer advanced placement courses and rural health care facilities access to the finest medical advice and services available.
While many areas served by companies and cooperatives in the RUS telecommunications program had modern advanced services, too many rural communities were far outside the service territory of these broadband pioneers. The RUS broadband loan program offered an exciting opportunity to close this digital divide.
As one of the co-authors of the broadband loan provisions contained in the farm bill, I strongly believe that
the Senate must keep faith with the carriers, cooperatives, communities and consumers who have been inspired to launch plans to bring broadband services to hometown America.
The broadband loan program builds on a proven sixty-eight year model which has brought modern telephone, electric and water infrastructure to rural areas. The farm bill added a new broadband title to the Rural Electrification Act. It also created a reliable, predictable multi-year stream of mandatory funding to instill confidence that sufficient funds would be available until expended to encourage investment.
Unfortunately, the funding for this program which is so vital to the economic health of rural America has been severely cut. We should be doing everything possible to incentivize broadband buildout in rural America rather than targeting this creative program which promises to bring huge benefits to vast areas of the country. I call on my colleagues to support the Dorgan-Burns amendment to restore funding to this critical program. It is very important.
I thank the Chair.