On Wednesday, lawmakers in the Montana House showed initial support for a bill that aims to increase legislative supervision over the state’s federally funded broadband internet program. This program is expected to allocate hundreds of millions of dollars towards enhancing rural Montana connectivity in the foreseeable future.
House Bill 484, sponsored by Rep. Katie Sullivan, D-Missoula, would rework an existing legislative committee created in 2021 to provide oversight as the broadband dollars are allocated by officials working under Republican Gov. Greg Gianforte. It would also direct state officials to prioritize projects proposed by Montana-based telecom providers and distribute grant awards more evenly across the state.
After a brief floor debate on Wednesday, the House approved HB 484 with a vote of 74-26. However, in order to proceed to the Senate, the bill must first pass a final vote in the House before the Friday transmittal deadline.
An initial $309 million round of ConnectMT broadband subsidies was formally awarded by Gianforte in December. That money, which came from the 2021 American Rescue Plan Act, was allocated to private telecom companies for projects that would expand their networks in underserved parts of the state.
Gianforte stated at the time that these projects are significant and will benefit Montana both presently and in the long run. He emphasized that the establishment of broadband connectivity in remote regions is crucial for our economy, which is constantly evolving.
However, Democrats and a few smaller telecommunications companies based in Montana expressed their criticism towards the allocation of awards, deeming it biased towards the telecom giant Charter Communications. Charter, operating in Montana under the Spectrum brand despite being headquartered in Connecticut, received $110 million for 18 projects, accounting for over a third of the total amount awarded.
Due to the location preferences of Charter for its expansions, the initial round of awards predominantly benefitted projects in suburban or urban counties, resulting in limited funding allocated to Montana’s rural communities.
A Montana Free Press analysis reveals that projects in Montana’s eight most heavily populated counties received a significant majority of the grants, approximately 65%. Furthermore, projects in Ravalli County, situated south of Missoula, were awarded approximately 23% of the total grants amounting to $70 million.
Sen. Jason Ellsworth, R-Hamilton, who chaired the broadband advisory committee, represents a district that covers southern Ravalli County and is now serving as president of the Montana Senate. As the broadband awards drew criticism last year, he defended the integrity of the awards process he oversaw while acknowledging it could be improved for future funding rounds.
Ellsworth stated at a December advisory committee meeting that, “While this may not be perfect, I firmly believe that perfection is unattainable in anything. Nonetheless, this plan effectively serves the needs of Montana.”
During the review of her bill last week, Sullivan informed lawmakers on the House Energy, Technology, and Federal Relations committee that the 2021 Infrastructure Investment and Jobs Act could potentially provide the state with an additional $400 million for its broadband program.
“At the committee hearing, Sullivan expressed that there had been a notable clustering of projects approved in urban areas in recent times. He emphasized the need for a more evenly distributed allocation of projects across the entire state, geographically speaking.”
The language in HB 484 mandates the broadband program to give high priority to awards situated in rural areas and deemed “economically infeasible” without assistance from the state.
The proposed legislation aims to modify the composition of the oversight committee for the program. At present, the committee is predominantly composed of GOP lawmakers and officials from the Gianforte administration. The bill seeks to achieve a more equitable representation by including both Republican and Democratic lawmakers. Additionally, the bill proposes the inclusion of a committee member representing the Montana telecommunications industry, as well as a representative from tribal governments.
This story is published by Montana Free Press as part of the Long Streets Project, which explores Montana’s economy with in-depth reporting. This work is supported in part by a grant from the Greater Montana Foundation, which encourages communication on issues, trends, and values of importance to Montanans. Discuss MTFP’s Long Streets work with Lead Reporter Eric Dietrich at [email protected].
