Congress set aside $42 billion for broadband internet in its massive 2021 federal infrastructure bill. States can apply for this funding and re-distribute this money as they decide.

Areas without high-speed internet will get top priority for funding. Internet providers also need to have no data caps, maintain reliable and secure networks, be open to everyone in the service area, and take part in a federal program which gives low-income households grants to pay for broadband.

Michigan is well positioned to take advantage of this program. The state’s “Broadband Expansion Act” requires that federal broadband money be re-distributed to unserved areas based on competitive bidding. It also prevents the money from going to networks owned and run by government entities.

Michigan municipalities have a poor track record of running their own networks. The city of Detroit’s pilot program is way behind schedule and unlikely ever to hit the ambitious goals laid out. Traverse City’s network has spiked in cost after four years of operation and is way behind in its customer and revenue projections. That’s despite being funded and backed by taxpayers and avoiding regulatory hoops private providers have to jump through.

An unprecedented amount of money is flowing into Michigan, much of which can be used to expand internet access. Unfortunately, as with many government programs, a lot of this funding is going to be spent ineffectively. State law does a pretty good job correctly prioritizing this spending. Local municipalities should ensure they do the same.

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