The USDA has unveiled a 2027 budget proposal that would trim discretionary spending by about 19% and could wipe out the ReConnect rural broadband grant program.
Historically, the ReConnect Loan and Grant Program has played a central role in rural connectivity, offering funds to cover construction, improvements, or acquisition of facilities and equipment needed for broadband deployments in rural areas.
USDA’s budget summary notes the cancellation of $40 million in unobligated balances from prior-year funds within the ReConnect pilot program.
Analysts say this may not be the end of the ReConnect story. Doug Dawson, president of CCG Consulting, notes that Congress retains the power to decide the budget and has often added funding to ReConnect during negotiations. He cautions that once ReConnect dies, almost all federal broadband grant programs could disappear, with only the Tribal funding program managed by NTIA (about $500 million) appearing to remain as a significant option.
The agency defends the move by arguing that ReConnect duplicates BEAD, the government’s multi-billion-dollar nationwide broadband effort. BEAD funding has also faced slowdowns and reductions, prompting calls—such as from New Mexico—for the release of their BEAD allocation; remaining unused BEAD funds are expected to be spent on broadband.
Beyond ReConnect, the 2027 budget would set aside $200 million for federally financed bank loans to expand rural deployments and $30 million for distance learning and telemedicine grants.
As in prior budget cycles, Dawson emphasizes that Congress’s action is pivotal. He warned that without legislative action to resurrect BEAD or preserve similar programs, the so‑called last broadband infrastructure grant program could fade away. He urged lawmakers to press forward with BEAD restoration and other targeted federal support to speed rural broadband access.
