We collect cookies to analyze our website traffic and performance; we never collect any personal data.Cookies Policy
Accept
Michigan Post
Search
  • Home
  • Trending
  • Michigan
  • World
  • Politics
  • Top Story
  • Business
    • Business
    • Economics
    • Real Estate
    • Startups
    • Autos
    • Crypto & Web 3
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Beauty
    • Art & Books
  • Health
  • Sports
  • Entertainment
  • Education
Reading: How the $4 Trillion Flood of Covid Relief Is Funding the Future
Share
Font ResizerAa
Michigan PostMichigan Post
Search
  • Home
  • Trending
  • Michigan
  • World
  • Politics
  • Top Story
  • Business
    • Business
    • Economics
    • Real Estate
    • Startups
    • Autos
    • Crypto & Web 3
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Beauty
    • Art & Books
  • Health
  • Sports
  • Entertainment
  • Education
© 2024 | The Michigan Post | All Rights Reserved.
Michigan Post > Blog > Tech / Science > How the $4 Trillion Flood of Covid Relief Is Funding the Future
Tech / Science

How the $4 Trillion Flood of Covid Relief Is Funding the Future

By Editorial Board Last updated: November 24, 2021 6 Min Read
Share
How the  Trillion Flood of Covid Relief Is Funding the Future
28mag money promo facebookJumbo v2

Infrastructure, conjuring as it does images of potholes and rusted water pipes, often goes overlooked; politicians would rather be associated with cutting ribbons than maintaining systems. Paradoxically, that has meant the great leaps in American infrastructure often come from moments of great lack: the greater the crisis, the larger the possible investment. The Great Depression led to the New Deal, which established the Federal Housing Administration and brought electricity to the rural United States; the Great Recession led to the American Recovery and Reinvestment Act, which directly funded improvements to 2,700 bridges and 42,000 miles of road.

In the 1930s, modernizing the country meant electricity. In the 2020s, it means broadband. “Our economy evolves and changes,” says Todd Schmit, an associate professor of applied economics and management at Cornell University, “and it’s really necessary now to think about broadband in an infrastructure space.” The digital divide is sharp in the United States: Census Bureau data shows that broadband access is concentrated in cities and in the Northeast, Florida and the West Coast. In rural areas and the South, West and Midwest, far fewer Americans have access. In the South, 111 counties have broadband subscription rates at or below 55 percent. The divide is often stark even within a state: In Virginia counties adjacent to Washington and Richmond, 85 percent of households have broadband; counties in the center of the state have less than 65 percent of households with subscriptions. According to research from BroadbandNow, a majority of counties in Alaska have zero access to broadband; in Mississippi and West Virginia, less than 60 percent of households have broadband access. A 2019 Arizona State University study found that nearly one in five tribal reservation residents had no home internet access.

This was all true before the pandemic, but when Americans were suddenly forced to work, learn, socialize and seek medical care online, the disparity in access became glaringly obvious — so obvious that lawmakers had no choice but to address it. The CARES Act opened the tap just a little, appropriating $100 million as grants for broadband in rural areas. In December 2020, the Consolidated Appropriations Act established more than $1.5 billion in broadband grants, including nearly $1 billion for tribes, which face some of the worst internet access in the country. The American Rescue Plan included $20.4 billion exclusively for broadband access, and gave states and localities about $388 billion in flexible funding that can be used for broadband. Across the country, this money is already teeing up projects to address digital disparities: satellite connectivity for remote tribes in Alaska, a grant program in rural Colorado, last-mile broadband deployment programs in Virginia, installing fiber cables in Arizona, improving outdoor connectivity in Georgia.

The $1.2 trillion infrastructure bill, signed into law on Nov. 15, will enable states to build on Covid-related funding. The CARES Act and the A.R.P. kept localities and companies moving forward rather than falling back during the pandemic; the infrastructure bill, which includes $312 billion for transportation, $65 billion for broadband and $108 billion for the electrical grid, takes an additional sizable step in that direction. But neither funding source includes the long-term investment needed for sustained progress.

Take the broadband build out as a key example: Out of the $65 billion allocated to broadband in the recent infrastructure bill, the bulk — $45 billion — is for installing broadband, compared with $17 billion for ongoing access and subsidy grants. “We’re going to give a big shot of investment for infrastructure and capital expenditures to build this system, but then we need to provide some subsidized assistance annually along the way, to keep it in the long-term,” Schmit says. “If you can build it, and then they get things going and everybody gets broadband, and in five years everybody’s bankrupt, then what have we solved?” The billions in federal funding may build access to broadband, but it offers no guarantee to sustain it, which is especially crucial for the rural broadband access that this legislation tries to address. Schmit studies broadband access in areas of upstate New York with fewer than 10 subscribers per mile, where offering service often isn’t cost-effective.

“If we can agree that access to broadband is a public good — for educating our children, for access to health care, for expanding business opportunities — there should be a defensible basis for government assistance in funding the operations of those programs,” he says. “But I think that’s a harder story to tell.”


Charley Locke is a writer, an editor and a story producer who often works on articles for The New York Times for Kids. Christopher Payne is a photographer who specializes in architecture and American industry. He has documented many industrial processes for the magazine, including one of America’s last pencil factories, Martin guitars and The Times’s own printing plant.

TAGGED:2021 tech and designAmerican Rescue Plan (2021)Coronavirus (2019-nCoV)Coronavirus Aid, Relief, and Economic Security Act (2020)Factories and ManufacturingFederal Aid (US)Stimulus (Economic)The Washington Mail
Share This Article
Facebook Twitter Email Copy Link Print

HOT NEWS

WNBA motherhood: The balancing act between profession and youngsters

WNBA motherhood: The balancing act between profession and youngsters

Sports
May 11, 2025
Ukraine ‘prepared to fulfill’ Russia after Putin name for peace talks on Thursday, says Zelenskyy

Ukraine ‘prepared to fulfill’ Russia after Putin name for peace talks on Thursday, says Zelenskyy

Volodymyr Zelenskyy says his nation is "ready to meet" Russian representatives after Vladimir Putin urged…

May 11, 2025
Prep speak: Servite is constructing round 4 freshmen offensive linemen

Prep speak: Servite is constructing round 4 freshmen offensive linemen

Servite Excessive soccer coach Chris Reinert is working round spring practices educating fundamentals. If he…

May 11, 2025
Pope Leo requires Ukraine peace and Gaza ceasefire in first Sunday tackle

Pope Leo requires Ukraine peace and Gaza ceasefire in first Sunday tackle

Pope Leo XIV has appealed for "no more war" in his first Sunday message to…

May 11, 2025
How UCLA’s Andy Hill spawned the plus-minus stat, an ode to group play and John Picket

How UCLA’s Andy Hill spawned the plus-minus stat, an ode to group play and John Picket

The basketball coaches at Santa Monica Faculty had this child.A wisp of a participant at…

May 11, 2025

YOU MAY ALSO LIKE

The communities preventing inexperienced power infrastructure in Devon and Wales

It isn't usually there are safety guards on the door and a whole lot queuing to get into a neighborhood…

Tech / Science
May 10, 2025

First moon rocks on Earth in half a century arrive in UK

The primary samples of moon mud introduced again to Earth for greater than 50 years are within the UK -…

Tech / Science
May 9, 2025

A ban on chlorinated rooster has protected farmers, however it’s protected UK customers too

Why has there been such a flap about chlorinated rooster?In American abattoirs, it's commonplace apply designed to scale back ranges…

Tech / Science
May 8, 2025

Might AI translate animal sounds into phrases? Tech consultants hope so

A Chinese language tech firm has revealed it's exploring whether or not it's doable to make use of AI to…

Tech / Science
May 8, 2025

Welcome to Michigan Post, an esteemed publication of the Enspirers News Group. As a beacon of excellence in journalism, Michigan Post is committed to delivering unfiltered and comprehensive news coverage on World News, Politics, Business, Tech, and beyond.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • Accessibility Statement

Contact Us

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 | The Michigan Post | All Rights Reserved

Welcome Back!

Sign in to your account

Lost your password?