Casey Lide of Keller and Heckman recently wrote a blog post warning that federal grant funding might be considered taxable income by the IRS. This unexpected tax liability could severely curtail the impact of federal grant programs designed to expand affordable broadband connectivity and close the digital divide. The Biden administration is weighing available options for using executive authority to exempt these projects, but a better remedy is for Congress to pass a clean and clear extension.
Broadband Provisions in the Infrastructure Investment and Jobs Act
Broadband has become a fundamental enabling technology for nearly every aspect of our lives. It helps support online learning, remote work, telemedicine, and delivery of government services. In the same vein, the lack of access to affordable broadband creates enormous challenges for segments of the population that are unable to access crucial services to help them succeed in work and life. This report summaries the Infrastructure Investment and Jobs Act programs that will allocate more than $65 billion toward closing the digital divide.