The Biden administration is dividing $42.45 billion in federal funds among the states, the District of Columbia and U.S. territories as part of its ambitious plan to expand high-speed internet service across the country.

The allocations, which the Commerce Dept. announced on June 26, support the Broadband Equity, Access and Deployment program (BEAD) and are part of the Infrastructure Investment and Jobs Act's $65 billion for high-speed internet expansion. 

The administration's goal is to connect everyone in the U.S. to high-speed internet by 2030, a plan that White House officials compare to the creation of the New Deal's rural electrification program. 

The Commerce Dept.’s National Telecommunications and Information Administration (NTIA) will oversee the BEAD program.

Alan Davidson, assistant secretary of Commerce for communication and information, said in a statement, “This is a watershed moment for millions of people across America who lack access to a high-speed internet connection.” 

Davidson added, “States can now plan their internet access grant programs with confidence and engage with communities to ensure this money is spent where it is most needed.”

Top Allocations: Texas, Calif., Mo., Mich., N.C.

Texas will receive the largest state allocation, $3.31 billion; California ranks second, with $1.86 billion. Missouri is third, with $1.74 billion, Michigan is fourth, with $1.56 billion and North Carolina is fifth, with $1.53 billion. 

 The White House said that the minimum state allocation is $107 million. 

The Commerce Dept. said that States and other potential recipients will be formally notified of their grant allotments on June 30. 

Each state then will have 180 days to submit proposals to NTIA outlining how its grant program will work. States can begin making the submissions on July 1. 

NTIA will approve proposals on a rolling basis. States, D.C. and territories will be able to request at least 20% of their overall allotments, Commerce said.

Meredith Attwell Baker, president and chief executive officer of internet association CTIA, said in a statement that the federal grant announcement “is an important step to ensuring all Americans have access to reliable, high-speed broadband.“ 

Baker added that for the program to be successful “it is critical for states to set program rules that provide them with the flexibility to use a range of technologies.”