Peace Garden News

Under current legislation, federal broadband deployment grants are taxed, reducing the funds available for recipients. To address this issue, U.S. Senator Kevin Cramer (R-ND) and U.S. Senator Jerry Moran (R-KS) have introduced the Broadband Grant Tax Treatment Act. This bipartisan bill aims to exclude these grants from taxable income, thereby allowing recipients to maximize investments in broadband expansion.

Senator Cramer emphasized the importance of reliable broadband in connecting rural areas to essential services such as telemedicine and educational opportunities. He stated, "It certainly won’t surprise North Dakotans to know that reliable, high-speed broadband brings our country together in many respects." He added that the bill is crucial for paving the way toward a more connected future.

Senator Moran highlighted the necessity of high-speed internet for Kansans' businesses and education. He remarked, "Reliable, high-speed internet is more crucial than ever for Kansans to run their businesses, access telehealth or pursue an education." The proposed legislation ensures that federal grants for broadband deployment are not considered taxable income.

The bill aligns with ongoing efforts to improve broadband accessibility in underserved communities and has garnered support from several industry leaders including USTelecom – The Broadband Association; Competitive Carriers Association; CTIA – The Wireless Association; INCOMPAS – The Internet and Competitive Networks Association; WTA – Advocates for Rural Broadband; NTCA – The Rural Broadband Association; and the Wireless Internet Service Providers Association.

The cosponsors of this act include Senators Dan Sullivan (R-AK), Tim Kaine (D-VA), Tommy Tuberville (R-AL), Mark Kelly (D-AZ), Shelley Moore Capito (R-WV), Angus King (I-ME), Roger Wicker (R-MS), Raphael Warnock (D-GA), and Deb Fischer (R-NE).