President Barack Obama today signed into law a far-ranging stimulus bill that allocates $7.2 billion for new broadband networks.
The bill splits the money between two agencies: the Commerce Department's National Telecommunications and
Information Administration will distribute $4.7 billion, while the Agriculture Department's Rural Utilities Service will dole out $2.5 billion.
Some consumer advocates had unsuccessfully
urged that all money be distributed by the NTIA, arguing that splitting the funds between two agencies would increase administrative costs.
The final version of the bill doesn't impose any
mandatory minimum speeds, but says that the NTIA "is expected to consider and support the highest possible broadband speeds in awarding grants."
In a victory for net neutrality advocates,
the bill says that companies receiving stimulus funds to build networks must adhere to the Federal Communications Commission's 2005 broadband policy principles, which provide that consumers should be
able to access any lawful content they choose.
This bill appears to mark the first time that Congress has officially endorsed those principles, but the FCC already made clear that it
believes those principles are the law of the land. Last year, the FCC voted 3-2 to sanction Comcast for slowing some peer-to-peer traffic, on the theory that the slowdowns violated the 2005 broadband
policy statement. Comcast, which is appealing that decision, argues that the 2005 statement was never enshrined in law.
The bill also directs the FCC to create a nationwide broadband plan
within one year.