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Rural Development (RD) will implement one mission-area-wide regulation to cover all three RD agencies’ loan and grant programs related to broadband programs. The rule will implement provisions as set forth in section 6210 of the 2018 Farm Bill.  Funds may be used for any activity for which assistance is provided under section 601 (Access to Broadband Telecommunications Services in Rural Areas) of the Rural Electricification Act of 1936 and/or funds may be used to construct other broadband infrastructure (such as middle mile facilities, etc.). Limitations on the use of funding assistance will be addressed in the rule as imposed by Section 6210 of the 2018 Farm Bill:

1. Not more than 10 percent of any financial assistance may be used to provide retail broadband service; in cases where retail broadband service is being proposed, applicants will need to comply with the public notice requirements of section 6207 of the [2018 Farm Bill];

2. Funds may only be used in an area that is not being provided with the minimum acceptable level of broadband (established under 601(d) of the RE Act);

3. This authority shall not be construed to limit the availability of any borrower to finance or deploy services previously authorized; and

4. This authority cannot be used if it would result in competitive harm to any Rural Development grant, loan, or loan guarantee recipient.

As this new rule applies to all RD agencies, each agency, at their sole discretion, will determine which agency regulations will require conforming amendments after enactment of this new rule.