Broadband Stimulus grants may have been improperly bestowedCreated: 5/2/2011 8:16:30 AMThe Broadband Stimulus Project is part of the Obama administration's effort to bridge the technological divide and provide easy broadband access to both poor and rich communities. However, a new study suggests that some of the grant money delivered by the project may have been sent to counties and municipalities that already had access to advanced internet and telecommunications capabilities.
According to Fierce Broadband Wireless, the National Cable and Telecommunications Association reported that three major stimulus projects awarded funds to regions already covered by broadband services providers. The areas in question are located in northeastern Minnesota, southwestern Montana and northwestern Kansas.
"Millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage," wrote Jeffrey Eisenach and Kevin Caves, the authors of the study by Navigant Economics.
There may be future actions to correct these improper grants, though overall the Broadband Stimulus Project has delivered critical services to areas that need financial help to install advanced networks. According to the Daily Hampshire Gazette, less affluent areas of western Massachusetts recently received $45.4 million in federal grants to fund its own broadband initiative.
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