What They Are Saying: Broadband Industry Leaders Applaud Introduction of the Broadband Grant Tax Treatment Act

WASHINGTON –
U.S. Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) led the introduction of the
Broadband Grant Tax Treatment Act
to amend the Internal Revenue Code to make certain that federal broadband deployment funding will not be considered taxable income. This legislation received support from businesses, universities and associations across Kansas and the nation. Statements in support of the
Broadband Grant Tax Treatment Act
can be found below:
“We appreciate the leadership of Senators Moran and Warner for their efforts to eliminate the tax on broadband grants to ensure more investment can connect more of our citizens and communities. Their bill is as pro-consumer as it gets.”
– Brandon Heiner, Senior Vice President of Government Affairs at USTelecom – The Broadband Association
“CTIA commends the bipartisan work of Senators Warner and Moran to reintroduce the Broadband Grant Tax Treatment Act in this Congress. Guaranteeing that grant funds can be optimally spent as intended will encourage the investments that reinforce and accelerate broadband deployment. This legislation will help ensure all Americans have access to world-leading wireless networks and that the United States is first globally in technology.”
– Kelly Cole, Senior Vice President of Government Affairs at CTIA
“NTCA and its members greatly appreciate Congress’s commitment to funding broadband deployment programs that help further the mission of connecting all Americans. However, when these funds are taxed, providers are required to pay the federal government a portion of the same award that they received from the federal government, instead of using the funds to serve the hardest-to-reach communities. NTCA thanks Sens. Moran and Warner for their leadership in introducing this commonsense legislation to ensure that every dollar granted for broadband deployment is used effectively to further the mission of connecting all Americans.”
– Shirley Bloomfield, CEO of NTCA – The Rural Broadband Association
“Grant funding has the potential to make sure that our rural and underserved communities receive connectivity through wireless and broadband services, but the impact that these grants can have is limited if those grants are taxed, undercutting the potential of federal broadband programs. Federal broadband grants should be free from taxation to ensure that every dollar goes towards connecting Americans. I applaud Sens. Moran (R-KS) and Warner (D-VA) for leading this bill in the Senate and urge its swift passage.”
– Tim Donovan, President & CEO of The Competitive Carriers Association (CCA)
"INCOMPAS members are building networks of the future with a mission to connect all Americans. Public-private partnerships are a critical component to help achieve this goal. This bill will ensure every single dollar allocated to deploying broadband goes to deploying broadband. INCOMPAS wholeheartedly supports this commonsense measure and urges Congress to act swiftly to ensure our members can continue to use critical grant resources to bridge the digital divide."
– Chip Pickering, CEO of INCOMPAS
“ACA Connects thanks Senators Jerry Moran and Mark Warner for leading on the Broadband Grant Tax Treatment Act. This bipartisan legislation will ensure 100 percent of broadband grants are used to close the digital divide. America’s small and independent providers support this bill to make every dollar count as they invest in their communities, deploy infrastructure, and connect more people to high-speed internet.”
– Grant Spellmeyer, President & CEO of ACA Connects
"We applaud Senators Moran and Warner for reintroducing this bipartisan legislation to make sure the small, rural broadband providers we represent don’t get stuck with a major tax bill when they accept government grants to build broadband networks - Advocates for Rural Broadband. Congress has made an historic level of investment in broadband over the past several years and we want to see it pay dividends. Every dollar diverted to paying taxes on government grants is a dollar that is not invested in the network and connecting all Americans to broadband."
– Derrick Owens, Senior Vice President for Government and Industry Affairs for WTA – Advocates for Rural Broadband
“TIA is pleased to see the reintroduction of the Broadband Grant Tax Treatment Act (BGTTA) by Senators Warner and Moran. This crucial legislation addresses a significant issue affecting the deployment of high-speed broadband networks across the United States. The broadband programs established under the Infrastructure Investment and Jobs Act (IIJA), particularly the $42.5 billion Broadband Equity, Affordability, and Deployment (BEAD) program, have the potential to connect all Americans to high-speed broadband. However, the current tax treatment of all federal broadband grants, including BEAD, as taxable income significantly reduces the funds available for building these networks. This unintentional tax burden significantly limits potential applicants for larger projects and could deter small service providers from seeking broadband funding. As Congress and President Trump’s administration work on streamlining BEAD requirements, it is imperative that Congress passes the BGTTA to ensure these dollars are used for their intended purpose: Connecting Americans with high speed, secure broadband.”
– The Telecommunications Industry Association (TIA)
“The Infrastructure Investment and Jobs Act’s purpose is to spur infrastructure deployment, but short-sighted tax policy currently limits the potential reach of broadband grants, undercutting our goal of enabling connectivity everywhere.  Senators Moran and Warner’s common sense Broadband Grant Tax Treatment Act will ensure we can finish the job and close the digital divide.”
– The Wireless Infrastructure Association (WIA)
“Since the pandemic, Congress has appropriated billions of dollars to accelerate the deployment of broadband networks in unserved areas so all Americans, no matter where they live, can get online.  Significant portions of that funding are presently taxable, and every dollar returned to Washington is one less dollar available to connect unserved communities. We therefore commend Senators Warner and Moran for introducing the Broadband Grant Tax Treatment Act, a pragmatic solution which eliminates the tax on broadband grants so that those funds can more ably meet Congress’ important universal service goals. Connected communities are more prosperous communities, which is the ultimate goal of Internet-for-All.”
– Matt Mandel, Vice President of Government Affairs at The Wireless Internet Service Providers Association (WISPA)
"The Communications Infrastructure Contractors Association and our 1,000 member companies from coast to coast are proud to support the Broadband Grant Tax Treatment Act that was recently introduced in the 119th Congress. NATE member companies are on the front lines of deployment and will play an instrumental role in closing the digital divide. It is imperative that the entirety of federal broadband dollars allocated for these purposes go towards connectivity, rather than making their way back to the government through taxes. We thank Senators Jerry Moran and Mark Warner for bringing this legislation forward in the Senate and also applaud Representatives Mike Kelly and Jimmy Panetta for spearheading this important proposal in the House of Representatives."
– Todd Schlekeway, President & CEO of NATE - The Communications Infrastructure Contractors Association
“I would like to thank Senator Moran on his leadership in the effort to address the taxation challenge on federal broadband grants. Nex-Tech is a broadband provider committed to expanding high-speed internet access in rural Kansans, and I wholeheartedly support the Broadband Grant Tax Treatment Act. This legislation ensures that every dollar of federal grant funding can be fully utilized for broadband deployment, rather than being diminished by taxes. By removing this financial barrier, it will allow us to fully utilize funding for the delivery of essential internet services to underserved areas, fostering economic growth and improving quality of life for areas served by Nex-Tech.”
–
Jimmy Todd, CEO & General Manager of Nex-Tech
“We are pleased to hear the about the introduction of the ‘Broadband Grant Tax Treatment Act’ by Senator Moran and his colleagues. The current method of taxing grant dollars greatly limits the dollars available to build out broadband networks to these unserved parts of Kansas in need of reliable broadband. We support this legislation and appreciate the work Senator Moran has done to introduce this bill as we continue work to close the digital divide.”
– Greg Reed, CEO of Wheat State Technologies
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