[Congressional Record Volume 168, Number 42 (Wednesday, March 9, 2022)]
[Extensions of Remarks]
[Pages E242-E243]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 COST ESTIMATE FOR H.R. 4374, BROADBAND INTERNET CONNECTIONS FOR RURAL 
                              AMERICA ACT

                                 ______
                                 

                            HON. DAVID SCOTT

                               of georgia

                    in the house of representatives

                        Wednesday, March 9, 2022

  Mr. DAVID SCOTT of Georgia. Madam Speaker, I include in the Record 
the cost estimate prepared by the Congressional Budget Office for H.R. 
4374, the Broadband Internet Connections for Rural America Act. The 
cost estimate was not available at the time of the Committee report 
filing.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                Washington, DC, November 29, 2021.
     Hon. David Scott,
     Chairman, Committee on Agriculture,
     House of Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimate for H.R. 4374, the 
     Broadband Internet Connections for Rural America Act.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Jon Sperl.
           Sincerely,
                                                Phillip L. Swagel,
                                                         Director.
       Enclosure.


   H.R. 4374, BROADBAND INTERNET CONNECTIONS FOR RURAL AMERICA ACT AS
    REPORTED BY THE HOUSE COMMITTEE ON AGRICULTURE ON AUGUST 6, 2021
------------------------------------------------------------------------
                                          By fiscal year, millions of
                                                   dollars--
                                     -----------------------------------
                                         2022      2022-2026   2022-2031
------------------------------------------------------------------------
Direct Spending (Outlays)...........          0           0           0
Revenues............................          0           0           0
Increase or Decrease (-) in the               0           0           0
 Deficit............................
Spending Subject to Appropriation           157       9,005      33,461
 (Outlays)..........................
------------------------------------------------------------------------

       Statutory pay-as-you-go procedures apply? No.
       Increases on-budget deficits in any of the four consecutive 
     10-year periods beginning in 2032? No.
       Mandate Effects:
       Contains intergovernmental mandate? No.
       Contains private-sector mandate? No.
       H.R. 4374 would establish or reauthorize programs 
     administered by the Department of Agriculture (USDA) to 
     increase broadband connectivity in rural areas and would 
     authorize the appropriation of specific annual amounts over 
     the 2022-2029 period. Because specific amounts are already 
     authorized for most of the programs, this cost estimate 
     accounts for the difference between the amounts specified in 
     the bill and those authorized under current law.
       On net, H.R. 4374 would authorize the appropriation of 
     about $42.3 billion. Using historical spending patterns for 
     similar activities and information provided by USDA, CBO 
     estimates that implementing H.R. 4374 would cost $9.0 billion 
     over the 2022-2026 period, $33.5 billion over the 2022-2031 
     period and $7.0 billion after 2031, assuming appropriation of 
     the authorized amounts.
       The costs of the legislation, detailed in Table 1, fall 
     within budget function 450 (community and regional 
     development).

[[Page E243]]



                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 4374
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          By fiscal year, millions of dollars--
                               -------------------------------------------------------------------------------------------------------------------------
                                  2022      2023      2024      2025      2026      2027      2028      2029      2030      2031    2022-2026  2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
ReConnect Rural Broadband
 Program: a
    Estimated Authorization...     4,150     4,150     4,500     4,500     4,500     4,500     4,500     4,500         0         0     21,800     35,300
    Estimated Outlays.........       125       540     1,173     2,245     3,211     3,962     4,164     4,261     4,137     3,690      7,292     27,505
Middle Mile Broadband Program:
 a
    Estimated Authorization...       290       290       300       300       300       300       300       300         0         0      1,480      2,380
    Estimated Outlays.........         9        38        82       155       223       275       292       294       285       255        506      1,906
Innovative Broadband
 Advancement Program: a
    Authorization.............       290       290       300       300       300       300       300       300         0         0      1,480      2,380
    Estimated Outlays.........        15        52       111       199       268       282       290       294       279       240        644      2,029
Community Connect Grants: a
    Estimated Authorization...       100       100       150       150       150       150       150       150         0         0        650      1,100
    Estimated Outlays.........         3        18        50        85       120       136       146       147       143       120        276        967
Distance Learning and
 Telemedicine: a
    Estimated Authorization...         0        68       150       150       150       150       150       150         0         0        518        968
    Estimated Outlays.........         0         2        25        67       103       131       144       146       143        98        196        857
Broadband Connectors Program:
    Authorization.............        25        25        25        25        25        25        25        25         0         0        125        200
    Estimated Outlays.........         6        14        21        25        25        25        25        25        19        11         91        196
    Total Changes:
        Estimated                  4,855     4,923     5,425     5,425     5,425     5,425     5,425     5,425         0         0     26,053     42,328
         Authorization........
        Estimated Outlays.....       157       663     1,460     2,776     3,949     4,811     5,061     5,166     5,006     4,414      9,005     33,461
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
a Specific authorizations already exist for these programs through fiscal year 2023. This estimate shows only the incremental increases in
  authorizations that would be created by H.R. 4374. CBO thus estimates that the bill would increase authorizations in each year over the 2022-2023
  period by the difference between the amount that would be authorized by H.R. 4374 and the amounts authorized under current law for each of those
  years.

       H.R. 4374 would authorize the appropriation of the 
     following amounts over the 2022-2029 period:
       $4.5 billion annually for grants and loans under the 
     ReConnect Rural Broadband Program. Under current law, $350 
     million is authorized to be appropriated annually for 2022 
     and 2023.
       $300 million annually for grants and loans to expand rural 
     ``middle mile'' broadband infrastructure. Under current law, 
     $10 million is authorized to be appropriated annually for 
     2022 and 2023.
       $300 million annually for grants and loans under the 
     Innovative Broadband Advancement Program. Under current law, 
     $10 million is authorized to be appropriated annually for 
     2022 and 2023.
       $150 million annually for grants under the Community 
     Connect Program. Under current law, $50 million is authorized 
     to be appropriated annually for 2022 and 2023.
       $150 million annually for grants and loans under the 
     Distance Learning and Telemedicine Program. The program 
     received supplemental appropriations of $531 million in 2021. 
     Because CBO estimates budgetary effects under continuing 
     resolutions on an annualized basis, in 2022 CBO assumes that 
     the same amount will be available under the current 
     continuing resolution (Public Law 117-43). Therefore, CBO 
     estimates that H.R. 4374 would not increase net 
     authorizations in that year relative to amounts already 
     assumed in the baseline. Under current law, $82 million is 
     authorized to be appropriated for 2023. The annual 
     incremental increase that year is $68 million--the difference 
     between the $150 million annual authorization under the bill 
     and the current-law authorization of $82 million for that 
     year.
       $25 million annually for USDA to provide technical 
     assistance to rural communities under the Broadband 
     Connectors Program.
       The CBO staff contact for this estimate is Jon Sperl. The 
     estimate was reviewed by H. Samuel Papenfuss, Deputy Director 
     of Budget Analysis.

                          ____________________