---
kind: "section"
citation: "7 U.S.C. § 950bb–1"
title: "7"
title_heading: "Agriculture"
number: "950bb–1"
heading: "Expansion of middle mile infrastructure into rural areas"
release: "119-102"
url: "https://uscodex.org/usc/7/950bb-1"
units:
  - "Chapter 31 — Rural Electrification and Telephone Service"
  - "Subchapter VI — Rural Broadband Access"
---

# §950bb–1. Expansion of middle mile infrastructure into rural areas

- (a) **Purpose—** The purpose of this section is to encourage the expansion and [extension](/usc/7/5801.md?p=b-5) of middle mile broadband infrastructure to connect underserved [rural areas](/usc/7/913.md?p=3) to the backbone of the Internet.
- (b) **Middle mile infrastructure—** For the purposes of this section, the term “middle mile infrastructure” means any broadband infrastructure that does not connect directly to end-user locations (including anchor institutions) and may include interoffice transport, backhaul, Internet connectivity, data centers, or special access transport to [rural areas](/usc/7/913.md?p=3).
- (c) **Grants, loans, and loan guarantees—** The [Secretary](/usc/7/913.md?p=5) shall make grants, loans, and loan guarantees to eligible applicants described in [subsection (d)](#d) to provide [funds](/usc/7/4531.md?p=5) for the construction, improvement, or acquisition of [middle mile infrastructure](#b) to serve [rural areas](/usc/7/913.md?p=3).
- (d) **Eligibility—**
  - (1) **Eligible applicants—**
    - (A) **In general—** To be eligible to obtain assistance under this section, an eligible entity shall—
      - (i) submit to the [Secretary](/usc/7/913.md?p=5) an application at such time, in such manner, and containing such information as the [Secretary](/usc/7/913.md?p=5) may require;
      - (ii) agree to complete build-out of the [middle mile infrastructure](#b) described in the application by not later than 5 years after the initial date on which proceeds from the assistance provided under this section are made available; and
      - (iii) submit to the [Secretary](/usc/7/913.md?p=5) a plan to ensure the viability of the project by—
        - (I) connecting, assisting with connecting, or enabling the connection of retail broadband systems that serve [rural areas](/usc/7/913.md?p=3) within the proposed service [territory](/usc/7/913.md?p=4) to the [middle mile infrastructure](#b) project in an affordable and economically competitive manner;
        - (II) leasing or selling sufficient capacity prior to project approval; and
        - (III) complying with any other requirements imposed by the [Secretary](/usc/7/913.md?p=5).
    - (B) **Additional end user broadband programs—** Entities that receive assistance to construct, improve, or acquire [middle mile infrastructure](#b) under this section shall be eligible to apply for additional [funds](/usc/7/4531.md?p=5) under this subchapter to provide for retail broadband service to end users.
  - (2) **Eligible service territories—** The proceeds of assistance provided under this section may be used to carry out a project in a proposed service [territory](/usc/7/913.md?p=4) only if, as of the date the application for assistance under this section is submitted, there is not adequate [middle mile infrastructure](#b) available to support broadband service for eligible [rural](/usc/7/1991.md?p=a-13-B) communities that would be provided access to the [middle mile infrastructure](#b).
  - (3) **Eligible projects—** A project shall be eligible for assistance under this section if at the time of the application—
    - (A) at least 75 percent of the interconnection points serve such eligible [rural areas](/usc/7/913.md?p=3); and
    - (B) the [Secretary](/usc/7/913.md?p=5) determines that the proposed middle mile network will be capable of supporting retail broadband service meeting the maximum broadband buildout requirement established under [section 950bb(e)(4) of this title](/usc/7/950bb.md?p=e-4) for the residents within the proposed service [territory](/usc/7/913.md?p=4).
- (e) **Limitation on grants—** In making grants under this section, the [Secretary](/usc/7/913.md?p=5) shall—
  - (1) not provide any grant in excess of 20 percent of the total project cost; and
  - (2) provide grants only to those projects which serve [rural areas](/usc/7/913.md?p=3) where population density or geographic characteristics make it infeasible to construct middle mile broadband systems without grant assistance.
- (f) **Terms, conditions, and adequacy of security—** All loans and loan guarantees provided under this section shall be made subject to such terms, conditions, and adequacy of security requirements as may be imposed by the [Secretary](/usc/7/913.md?p=5). If the [middle mile infrastructure](#b) would not provide adequate security due to long-term leasing arrangements, the [Secretary](/usc/7/913.md?p=5) shall require substitute security in such form and substance as are acceptable to the [Secretary](/usc/7/913.md?p=5).
- (g) **Authorization of appropriations—** There is authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2018 through 2023.

## Source credit

(May 20, 1936, ch. 432, title VI, § 602, as added Pub. L. 110–234, title VI, § 6111, May 22, 2008, 122 Stat. 1203, and Pub. L. 110–246, § 4(a), title VI, § 6111, June 18, 2008, 122 Stat. 1664, 1965; amended Pub. L. 115–334, title VI, § 6202, Dec. 20, 2018, 132 Stat. 4734.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Amendments

2018—Pub. L. 115–334 amended section generally. Prior to amendment, section related to National Center for Rural Telecommunications Assessment.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.