After getting $1.25 million DCEO grant to expand broadband access, Adams declines $4.9 million DCEO grant received in June 2020

QUINCY — Days after receiving a $1,252,041 grant from the Illinois Department of Commerce and Economic Opportunity to help expand local broadband access, Adams Telephone Cooperative in Golden informed customers it was declining a DCEO grant of more than $4.9 million.

Each grant was to help broadband access to unserved homes and businesses in Adams and Pike counties. The $4.9 million grant was part of the first round of grants with the $400 million Connect Illinois Broadband Grant Program announced in June 2020. The $1.25 million grant was part of the second round of grants announced Jan. 26.

The first grant was supposed to cover approximately 50 percent of a $10 million fiber expansion project to connect an additional 1,106 households, businesses, farms and anchor institutions in rural areas east of Quincy. Adams mailed letters encouraging residents to pre-register for services, created a Connect Illinois landing page on its website and began planning for construction.

Adams customers learned last Friday in an email that the company was declining the grant.

First round of grants limited to 50 percent of overall cost of project

“We were lucky enough and excited that we were one recipient of that grant,” said Jim Broemmer, chief executive officer at Adams Telephone Cooperative. “We received that award in June 2020, and that project never, never moved forward. There’s not even a place to even go sign the grant agreement at this point.”

Broemmer said the grants awarded in the first two rounds were limited to 50 percent of a project’s overall cost. He said the cost of the $10 million project has increased by 30 percent since Adams first learned it had qualified for the first Connect Illinois grant.

Broemmer said Adams already has spent more than $4 million of its share that was supposed to go with the $4.9 million Connect Illinois grant.

“We just couldn’t wait,” he said. “We committed, stepped forward and spent our own dime. There were some really critical business needs we had to move forward on. We used our own funds to take care of a few portions of that (grant) submission that we made.”

Rules and applications for a third round of Connect Illinois grants were made available last week. Grants in the third round have no limit.

More federal money for broadband on its way

Disappointed to reject the first-round grant, Broemmer believes future grants will be handled better.

“I feel much more confident with round two and the timing. That (grant) has a much higher probability of moving forward,” he said. “(The DCEO has) changed it up quite a bit. I’m hoping with the announcement of round two that they’re close to working out those final details. The fact it’s a new program with the state, they’re still finishing some of their internal processes.

“We’re going to continue to look to see how we can help our fellow neighbors in our county and our region on getting better broadband. We’re excited to see the details on it. We have hopes that stuff is going to get worked out on the state side with the program. I suspect we will be submitting additional applications in this new round as it goes forward as well. 

The Biden administration’s $1 trillion infrastructure spending package includes $65 billion for broadband access to improve internet services for rural areas, low-income families and tribal communities. Most of the money will be made available through grants to states.

The Commerce Department and its telecom division will oversee $42.45 billion. The National Telecommunications and Information Administration makes grants to states. Another significant slice, $14.2 billion, will go to the Federal Communications Commission to establish an Affordable Connectivity Program.

Broemmer: Declining first grant should not affect future grants

“As the state’s getting (the Connect Illinois grant program) figured out, there’s also going to be several hundreds of billions of dollars coming to the state at some point,” Broemmer said. “More funds are going to become available in the state of Illinois to help make a difference in rural communities. It’s going to get figured out. Let’s put it that way.”

Broemmer doesn’t believe the decision to decline the first Connect Illinois grant will affect future grants from the same program.

“We have a very strong relationship with the Office of Broadband (in Illinois),” he said. “We have a track record. They know what we’ve done with building fiber infrastructure throughout this region and throughout the state. I don’t see that having an impact at all. Frankly, we’re a company that can make it happen, and I believe the state understands it’s not a personal thing. We’re trying to work closely with the state to try to push these funds forward and try to make a difference.”